Aspect takes a quantitative and systematic approach to investment management. Aspect has no market sector or directional preference, and markets are selected on the basis of diversification, liquidity and transaction costs.

Aspect manages the Aspect Absolute Return Fund - Class A in adhearence to the Aspect Absolute Return Programme.

This programme is managed by Aspect's research team and is built to blend different trading models and factors in a fair way to create a balanced portfolio that manages risks well. The programme captures various risk factors across different types of investments without relying too much on just one factor for returns.

To produce consistent absolute returns that are independent of overall movements in traditional stock and bond markets.

Benefits of investing in the Aspect Absolute Return Fund - Class A

Alliance with Aspect

The fund is offered to you by Colonial First State though an alliance with Aspect, providing you the opportunity to have your investment managed by one of the world's leading systematic investment managers.

Professional investment management

Aspect was founded in 1997 by Anthony Todd, Martin Lueck, Michael Adam and Eugene Lambert. Adam and Lueck are two of three co-founders of Adam, Harding & Lueck (AHL, now a part of Man Group plc), where they pioneered the application of systematic techniques to investment management. Aspect invests heavily in the continuous research-driven evolution of its investment systems and their efficient implementation across a wide range of liquid asset classes with the aim of generating high-quality and diversifying returns for clients.

Award winning service

We are committed to delivering superior client service and administration which has been recognised through many industry awards.

Professional investment management

The funds are offered to you by CFSIL though an alliance
with Aspect, providing you the opportunity to have your
investment managed by one of the world’s leading
systematic investment managers.

Diversification

Managed funds can help manage investment risk by
spreading your money across different investments. This
approach is called diversification.

Professional investment management

The funds are offered to you by CFSIL though an alliance
with Aspect, providing you the opportunity to have your
investment managed by one of the world’s leading
systematic investment managers.

Diversification

Managed funds can help manage investment risk by
spreading your money across different investments. This
approach is called diversification.

Award-winning service

We are committed to delivering superior client service
and administration, which has been recognised through
industry awards.

FirstNet makes it easy

If you are a direct investor, you can access up-to-date
information on your investments at any time via FirstNet.

About the Fund

The Aspect Absolute Return Fund captures a balanced combination of momentum, value and carry alternative risk premia themes. A dynamic risk parity technique is used to maximise diversification across these themes, aiming to generate a stable return profile.

Investment philosophy and process

Aspect manages the Aspect Absolute Return Fund - Class A in accordance with the Aspect Absolute Return Programme (the Programme).

Aspect's managed futures research team manages the Programme, which is designed to combine systematic trading models and other systematic factors in an unbiased fashion in order to create a balanced risk premium portfolio. The Programme systematically captures multiple risk premium factors, exploiting both relative and absolute effects across multi-asset derivatives, with no single factor dominating the return profile.

The Programme's investment objective is to generate consistent absolute returns that are independent of overall movements in traditional stock and bond markets. The Programme aims to generate these returns within a rigorous risk management framework. By maintaining a comparatively small exposure to any individual contract, the Programme seeks to achieve true sector and contract diversification, thereby allowing a wide range of opportunities to be exploited aimed at maximising long-term risk-adjusted returns.

The investment approach that underpins the Programme is proprietary and continues to evolve through rigorous research and development. The initial basis of the strategy was developed by Michael Adam and Martin Lueck in 1983 with significant enhancements applied since that time.

Aspect's investment philosophy has remained consistent since the company's inception and involves a scientific approach to investment driven by Aspect's belief that market prices are not random but rather that they display persistent, statistically measurable and predictable behaviour and idiosyncrasies. Through sophisticated quantitative research and a disciplined approach, these effects can be successfully identified and exploited for investment profit.

Strategy 

Aspect takes a quantitative and systematic approach to investment management. Aspect has no market sector or directional preference, and markets are selected on the basis of
diversification, liquidity and transaction costs. The fund aims to maximise diversification by spreading risk evenly across three uncorrelated investment themes; Momentum, Carry and
Value, with no single theme dominating the return profile.

The strategy employs a quantitative process to determine a view of the opportunities across the three investment styles. It has
exposure to over 230 of the most liquid global financial and commodity futures, currency forwards and other derivative contracts. By maintaining a comparatively small exposure to any individual contract, Aspect achieves sector and contract diversification, thereby exploiting a wide range of opportunities and maximising expected long-term risk-adjusted returns.

About Aspect

Aspect is a London-based managed futures investment manager which manages US$7.2 billion (at 31 October 2019).

Aspect was founded in 1997 by Anthony Todd, Martin Lueck, Michael Adam and Eugene Lambert. Two of Aspect's founders, Michael Adam and Martin Lueck, were involved in the successful development of AHL, one of the pioneers in the application of quantitative techniques to investment management. The company has over 110 employees and invests heavily in the research-driven evolution and efficient execution of its investment systems. Aspect, which is regulated by the Financial Conduct Authority in the United Kingdom, emphasises strong corporate governance and the provision of first class investor service to a client base which includes many of the world's leading institutional investors and distribution groups.

This fund has been identified as a complex' fund which requires further disclosure and reporting prescribed by ASIC. This information is provided in the Reference Guide - Complex Funds, available online at colonialfirststate.com.au/complex or by calling 13 13 36.

How we invest your money

Aspect takes a quantitative and systematic approach to investment management.

The fund attempts to capture multiple risk premium factors through exposure to multi-asset derivatives including futures, forwards and swaps. The fund aims to maximise diversification by spreading risk evenly across the different factors, with no single factor dominating the return profile.

Asset allocation

• Cash and derivatives: 0-100%

Futures and forwards are used to establish the market exposure of the fund. The face value of the fund's combined long and short positions will frequently be greater than 100% of the net asset value of the fund and, as a result, the fund will often be leveraged. The fund receives earnings from cash allocations for the benefit of investors.