Aspect Absolute Return Fund Class A (FSF3532AU) Report & Performance

What is the Aspect Absolute Return Fund Class A fund?

To produce consistent absolute returns that are independent of overall movements in traditional stock and bond markets. The fund aims to provide a return greater than the Reserve Bank of Australia cash rate over rolling three-year periods after fees and taxes. 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.

Growth of $1000 Investment Over Time

Performance Report

Peer Comparison Report

Peer Comparison Report

Latest News & Updates For Aspect Absolute Return Fund Class A

Aspect Absolute Return Fund Class A Fund Commentary August 31, 2023

The option 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. 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.

READ HISTORICAL PERFORMANCE COMMENTARIES

Product Snapshot

  • Product Overview
  • Performance Review
  • Peer Comparison
  • Product Details

Product Overview

Fund Name APIR Code
? A Product Code is unique a identifier code issued by a group or governing body, to reference products in a large group. For an example, APIR codes are commonly used for Funds and Ticker codes are commonly used for Securities such as ETFs and Stocks.
Structure
?
Asset Class
? An Asset Class breakdown provides the percentages of core asset classes found within a mutual fund, exchange-traded fund, or another portfolio. Asset classes (in microeconomics and beyond) generally refer to broad categories such as equities, fixed income, and commodities.
Asset Category
? An Asset Category is a grouping of investments that exhibit similar characteristics and are subject to the same laws and regulations. Asset categories (or a sub-asset class) are made up of instruments which often behave similarly to one another in the marketplace, looking down to the Asset Category level is important if looking to build a diversified portfolio.
Peer Benchmark Name
? A Peer Index (benchmark) refers to a peer group of investment managers who have the same investment style or category. It is used to compare the performance of one manager to their peer group, which makes it simpler for investors to choose between the vast number of investment managers.
Broad Market Index
? A Market Index (benchmark) refers to a hypothetical portfolio of investments that represents a segment, asset or category of an investable market. Market Indices are used to benchmark managers performance, to assist their style reliability and ability to provide excess returns.
FUM
? Funds/Assets under management (AUM) is the total market value of the investments that a person or entity manages on behalf of clients. Assets under management definitions and formulas vary by company.
Management Fee
? A management fee is a charge levied by an investment manager for managing an investment fund. The management fee is intended to compensate the managers for their time and expertise for selecting finanical products and managing the portfolio.
Performance Fee
? A performance fee is a payment made to an investment manager for generating positive returns. This is as opposed to a management fee, which is charged without regard to returns. A performance fee can be calculated many ways. Most common is as a percentage of investment profits, often both realized and unrealized. It is largely a feature of the hedge fund industry, where performance fees have made many hedge fund managers among the wealthiest people in the world.
Spread
? A spread can have several meanings in finance. Basically, however, they all refer to the difference between two prices, rates or yields. In one of the most common definitions, the spread is the gap between the bid and the ask prices of a security or asset, like a stock, bond or commodity. This is known as a bid-ask spread.
Aspect Absolute Return Fund Class AFSF3532AUManaged FundsAlternativesSystematic Risk PremiaAlternatives - Systematic Risk Premia IndexCredit Suisse AllHedge Fund Index21.17 M0.68%0.33%0%

Performance Review

Fund Name Last Month
? Returns after fees in the most recent (last) month).
3 Months Return
? Returns after fees in the most recent 3 months.
1 Year Return
? Trailing 12 month returns.
3 Years Average Return
? Average Annual returns from the last 3 years.
Since Inc. Average Return
? Average (annualised) returns since inception
1 Year Std. Dev. (Annual)
? The standard deviation (or annual volatility) of the last 12 months.
3 Years Std. Dev. (Annual)
? The average standard deviation (or annual volatility) from the last 3 years.
Since Inc. Std. Dev. (Annual)
? The average standard deviation (or annual volatility) since the fund inception.
1 Year Max Drawdown
? The maximum drawdown in the last 12 months - a drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund.
3 Year Max Drawdown
? The maximum drawdown in the last 36 months - a drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund.
Since Inc. Max Drawdown
? The maximum drawdown since inception - a drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund.
Aspect Absolute Return Fund Class A0.26%-0.99%6.19%1.31%0.92%6.26%7.23%7.09%-2.13%-8.65%-10.78%

Peer Comparison

Fund Name Peer Index Name
? A group of individuals who share similar characteristics and interests are called peer groups. Peer group analysis is an essential part of assessing a price for a particular stock in investment research. The emphasis here is on making a comparison, meaning that the peer group constituents should be more or less identical to the company being examined, especially in terms of their main business and market capitalization areas.
12 Months Excess Return
? Excess returns are an important metric that helps an investor to gauge performance in comparison to other investment alternatives. In general, all investors hope for positive excess return because it provides an investor with more money than they could have achieved by investing elsewhere.
Excess Return Annualised Since Inception
? Excess returns are an important metric that helps an investor to gauge performance in comparison to other investment alternatives. In general, all investors hope for positive excess return because it provides an investor with more money than they could have achieved by investing elsewhere.
12 Months Alpha
? Alpha is used in finance as a measure of performance, indicating when a strategy, trader, or portfolio manager has managed to beat the market return over 12 months. Alpha, often considered the active return on an investment, gauges the performance of an investment against a market index or benchmark that is considered to represent the market’s movement as a whole.
Alpha Annualised Since Inception
? Alpha is used in finance as a measure of performance, indicating when a strategy, trader, or portfolio manager has managed to beat the market annualized since inception. Alpha, often considered the active return on an investment, gauges the performance of an investment against a market index or benchmark that is considered to represent the market’s movement as a whole.
12 Months Beta
? Rolling 12Month Beta is a measure of the volatility—or systematic risk—of a security or portfolio compared to the market as a whole. Beta is used in the capital asset pricing model (CAPM), which describes the relationship between systematic risk and expected return for assets (usually stocks).
Beta Annualised Since Inception
? Beta is a measure of the volatility—or systematic risk—of a security or portfolio compared to the market as a whole. Beta is used in the capital asset pricing model (CAPM), which describes the relationship between systematic risk and expected return for assets (usually stocks).
12 Months Tracking Error
? 12Month Tracking error is the difference in actual performance between a position (usually an entire portfolio) and its corresponding benchmark over the last 12 months. The tracking error can be viewed as an indicator of how actively a fund is managed and its corresponding risk level. Evaluating a past tracking error of a portfolio manager may provide insight into the level of benchmark risk control the manager may demonstrate in the future.
Tracking Error Since Inception
? Since Inception tracking error is the difference in actual performance between a position (usually an entire portfolio) and its corresponding benchmark since inception. The tracking error can be viewed as an indicator of how actively a fund is managed and its corresponding risk level. Evaluating a past tracking error of a portfolio manager may provide insight into the level of benchmark risk control the manager may demonstrate in the future.
12 Months Correlation
? Correlation, in the finance and investment industries, is a statistic that measures the degree to which two securities move in relation to each other. Correlations are used in advanced portfolio management, computed as the correlation coefficient, which has a value that must fall between -1.0 and +1.0.
Correlation Since Inception
? Correlation, in the finance and investment industries, is a statistic that measures the degree to which two securities move in relation to each other. Correlations are used in advanced portfolio management, computed as the correlation coefficient, which has a value that must fall between -1.0 and +1.0.
Aspect Absolute Return Fund Class AAlternatives - Systematic Risk Premia Index0.43%0.74%-0.11%0.07%0.07%1.333.02%3.8%0.920.86

Product Details

Fund Name Verifed by SMSF Mates Manager Address Phone Website Email
Aspect Absolute Return Fund Class AYesTower 1, Ground Floor, 201 Sussex St,Sydney, NSW, 2000+61 2 93782000https://www.commbank.com.au/-

Product Due Diligence

What is Aspect Absolute Return Fund Class A

Aspect Absolute Return Fund Class A is an Managed Funds investment product that is benchmarked against Credit Suisse AllHedge Fund Index and sits inside the Alternatives - Systematic Risk Premia Index. Think of a benchmark as a standard where investment performance can be measured. Typically, market indices like the ASX200 and market-segment stock indexes are used for this purpose. The Aspect Absolute Return Fund Class A has Assets Under Management of 21.17 M with a management fee of 0.68%, a performance fee of 0.33% and a buy/sell spread fee of 0%.

How has the investment product performed recently?

The recent investment performance of the investment product shows that the Aspect Absolute Return Fund Class A has returned 0.26% in the last month. The previous three years have returned 1.31% annualised and 7.09% each year since inception, which is when the Aspect Absolute Return Fund Class A first started.

How is risk measured in this investment product?

There are many ways that the risk of an investment product can be measured, and each measurement provides a different insight into the risk present. They can be used on their own or together to perform a risk assessment before investing, but when comparing investments, it is common to compare like for like risk measurements to determine which investment holds the most risk. Since Aspect Absolute Return Fund Class A first started, the Sharpe ratio is 0.04 with an annualised volatility of 7.09%. The maximum drawdown of the investment product in the last 12 months is -2.13% and -10.78% since inception. The maximum drawdown is defined as the high-to-low decline of an investment during a particular time period.

What is the relative performance of the investment product?

Relative performance is what an asset achieves over a period of time compared to similar investments or its peers. Relative return is a measure of the asset's performance compared to the return to the other investment. The Aspect Absolute Return Fund Class A has a 12-month excess return when compared to the Alternatives - Systematic Risk Premia Index of 0.43% and 0.74% since inception.

Does the investment product produce Alpha over its Peers?

Alpha is an investing term used to measure an investment's outperformance relative to a market benchmark or peer investment. Alpha describes the excess return generated when compared to peer investment. Aspect Absolute Return Fund Class A has produced Alpha over the Alternatives - Systematic Risk Premia Index of -0.11% in the last 12 months and 0.07% since inception.

What are similar investment products?

For a full list of investment products in the Alternatives - Systematic Risk Premia Index category, you can click here for the Peer Investment Report.

What level of diversification will Aspect Absolute Return Fund Class A provide?

Aspect Absolute Return Fund Class A has a correlation coefficient of 0.86 and a beta of 1.33 when compared to the Alternatives - Systematic Risk Premia Index. Correlation measures how similarly two investments move in relation to one another. This establishes a 'correlation coefficient', which has a value between -1.0 and +1.0. A 100% correlation between two investments means that the correlation coefficient is +1. Beta in investments measures how much the price moves relative to the broader market over a period of time. If the investment moves more than the broader market, it has a beta above 1.0. If it moves less than the broader market, then the beta is less than 1.0. Investments with a high beta tend to carry more risk but have the potential to deliver higher returns.

How do I compare the investment product with its peers?

For a full quantitative report on Aspect Absolute Return Fund Class A and its peer investments, you can click here for the Peer Investment Report.

How do I compare the Aspect Absolute Return Fund Class A with the Credit Suisse AllHedge Fund Index?

For a full quantitative report on Aspect Absolute Return Fund Class A compared to the Credit Suisse AllHedge Fund Index, you can click here.

Can I sort and compare the Aspect Absolute Return Fund Class A to do my own analysis?

To sort and compare the Aspect Absolute Return Fund Class A financial metrics, please refer to the table above.

Has the Aspect Absolute Return Fund Class A been independently verified by SMSF Mate?

This investment product is in the process of being independently verified by SMSF Mate. Once we have verified the investment product, you will be able to find more information here.

How can I invest in Aspect Absolute Return Fund Class A?

If you or your self managed super fund would like to invest in the Aspect Absolute Return Fund Class A please contact Tower 1, Ground Floor, 201 Sussex St,Sydney, NSW, 2000 via phone +61 2 93782000 or via email -.

How do I get in contact with the Aspect Absolute Return Fund Class A?

If you would like to get in contact with the Aspect Absolute Return Fund Class A manager, please call +61 2 93782000.

Comments from SMSF Mates

SMSF Mate does not receive commissions or kickbacks from the Aspect Absolute Return Fund Class A. All data and commentary for this fund is provided free of charge for our readers general information.

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Historical Performance Commentary

Performance Commentary - July 31, 2023

The option 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. 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.

Performance Commentary - June 30, 2023

Performance Commentary - May 31, 2023

Markets monitored US debt ceiling negotiations for signs of progress, as fears of a potential default in the US weighed on risk sentiment which supported the US dollar. The Federal Reserve and other major central banks continued their efforts to fight inflation by each issuing widely anticipated rate hikes of 25bps. The outlook for the end of the rate-hiking cycle remained murky. US inflation showed signs of moderating, but the US job market demonstrated it remains very strong. Meanwhile disappointing Chinese economic indicators suggested a flagging economic recovery and Germany fell into technical recession.

The euro was central to the Fund’s currency returns this month. The strategy managed to capture euro strength against the Swedish krona and euro weakness against the British pound. Widening rate differentials between Europe and Sweden, resulted in persistent Swedish krona weakness. Conversely the British pound strengthened against the euro as a relatively higher UK inflation implied a more hawkish Bank of England. The Fund incurred losses from stock indices, predominantly from long European stock indices exposures, as prices fell on signs that the economic outlook may be worsening. Losses also came from the Fund’s long position in the Canadian TSE 60 index as commodity prices fell and data showed Canadian consumer inflation unexpectedly rose for the first time in a nearly a year.

Performance from the Fund’s net short energies exposure came from short positions across natural gas markets, as both supply glut and low demand worries pushed prices lower. Concerns about the health of the global economy contributed to oil demand pessimism, which also led to gains from the Fund’s short WTI crude oil position. In agriculturals, profits were largely driven by the Fund’s short position in lean hogs as prices continued to slide in response to poor demand for US pork. Elsewhere in commodity markets, the Fund’s net short exposure to base metals generated modest gains. Relatively subdued metals demand from China as well as weak Chinese economic data for April, weighed down on prices.

Performance Commentary - April 30, 2023

Continued signs of stress amongst US regional banks cemented investors’ expectations of recession, as lenders tightened credit conditions in the face of rising rates, exiting deposits and higher risks of defaults. Market-implied policy rates suggested a final 25bps hike at the upcoming Federal Reserve’s meeting in May, followed by rate cuts in the second half of this year.

Within the Fund’s most profitable sector, currencies, the Fund’s net long exposure to the euro against the Norwegian krone led gains. The Nordic currency weakened as the Norges Bank continued to sell its domestic currency to fund the Government Pension Fund of Norway. Widening rate differentials and oil price weakness also weighed on the currency. The Fund’s long exposure to the euro against the Japanese yen was also profitable. Stubbornly high inflation, strong wage growth and the lack of a recession this winter in Europe have given the ECB room to hike. This has been supportive for the euro against the Japanese yen, particularly given the BOJ’s pursuance of yield curve controls. The Fund sustained a small loss across its net short exposure to bonds, as yields fell slightly on expectations of a more dovish Federal Reserve policy stance ahead.

Across commodities, the majority of the Fund’s gains came from agriculturals. Sugar prices rallied extensively as poor weather in sugar producing country India constrained supply, and increased production of ethanol—a biofuel made using sugarcane juice—supported demand. The Fund also made gains from its short positioning in wheat which came under pressure due to prospects of bumper crops in the Americas.

Performance Commentary - March 31, 2023

Market consensus abruptly changed direction in response to the failure of Silicon Valley Bank, the largest bank failure since Washington Mutual in 2008. The news fuelled fears of contagion risk in the global banking sector and highlighted the potential difficulties rising interest rates could pose to economies. As a result, the fixed income sector experienced extreme volatility as government bond yields posted their largest daily fall in decades.

Prior to the shift in sentiment, the Fund made gains from appropriately sized and intuitive positions based on the enduring interest rate hiking cycle narrative. However, the extraordinary reversal in fixed income yields over a handful of days began to dominate losses. The Fund’s systematic measures of risk and faster trend filters responded swiftly to the sudden increase in volatility and change in trend direction. As the interest rate risk shock subsided, performance started to recover slightly towards the end of the month.

Losses came primarily from financial markets, particularly in the fixed income sector as short positions were impacted by the drop in government bond yields. The stock market sell-off caused by banking sector fears and a flight to safety, resulted in losses for the Fund’s long positions. In commodity markets, prices in general fell as economic uncertainty weighed on demand. The Fund’s net short exposure in the energy sector generated gains, particularly from a short position in Natural Gas.

Performance Commentary - February 28, 2023

Despite continued hawkish rhetoric from the Federal Reserve and European Central Bank, risk assets rallied and bond yields fell as cooling inflation raised hopes of a reduction in the size of future rate rises. The positive sentiment in financial markets was further boosted by the reopening of China’s economy following a relaxation of Covid restrictions and by unusually mild weather in Europe, which helped the region to avoid an energy crisis over the winter.

The Fund’s net short fixed income exposure incurred the majority of losses during the month. Government bond prices rose in unison due to an expected shift in the pace of rate hikes. In currencies, the Fund’s net long exposure to the euro resulted in gains, as there were hopes that moderating energy prices could help Europe avoid a severe recession. The Fund made a small gain in stock indices, as it increased its net exposure in response to an upward trend in the sector.

In commodities, the Fund’s gains in energies came from short positions in natural gas markets, where prices fell sharply due to high European inventory levels and a reduction in demand. The agriculturals sector made a small loss, notably from a short position in coffee, as prices increased due to supply concerns. In metals, the Fund’s net short exposure at the start of the month led to losses as prices rose in response to a weakening US dollar.

Performance Commentary - January 31, 2023

Despite continued hawkish rhetoric from the Federal Reserve and European Central Bank, risk assets rallied and bond yields fell as cooling inflation raised hopes of a reduction in the size of future rate rises. The positive sentiment in financial markets was further boosted by the reopening of China’s economy following a relaxation of Covid restrictions and by unusually mild weather in Europe, which helped the region to avoid an energy crisis over the winter.

The Fund’s net short fixed income exposure incurred the majority of losses during the month. Government bond prices rose in unison due to an expected shift in the pace of rate hikes. In currencies, the Fund’s net long exposure to the euro resulted in gains, as there were hopes that moderating energy prices could help Europe avoid a severe recession. The Fund made a small gain in stock indices, as it increased its net exposure in response to an upward trend in the sector.

In commodities, the Fund’s gains in energies came from short positions in natural gas markets, where prices fell sharply due to high European inventory levels and a reduction in demand. The agriculturals sector made a small loss, notably from a short position in coffee, as prices increased due to supply concerns. In metals, the Fund’s net short exposure at the start of the month led to losses as prices rose in response to a weakening US dollar.

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