In the interview below, Winton's Sebastian Maciocia explains what makes the fund stand out, and how it can add value as part of a diversified portfolio.
How does the fund invest and what makes it different?
The fund takes long and short positions in more than 80 futures markets, providing exposure to all manner of asset classes – including stock indices, government bonds, short-term interest rates, commodities and currencies – as it seeks to produce an absolute return. Winton is a systematic investment manager, which means that all our investment products – this fund included – invest using a process that is fundamentally different to that employed by discretionary fund managers. Our buy and sell decisions are the result of rigorously researched investment rules, backed by large amounts of data, that are then implemented using computers and institutional-grade infrastructure.
How has the fund performed in the first 12 months since it was launched?
We don’t believe that 12 months is a long enough period to seriously judge fund performance, and the Winton Absolute Return Futures Fund was designed with a longer investment horizon in mind. That said, it is gratifying that the fund performed well for investors in its first year, returning 3.3% net in the 12 months since it was launched .
What has driven the fund’s performance over that period?
It is notable, that since the beginning of 2018, the fund's positive performance is mainly down to its positioning in energies, crops and short-term interest rates – markets that many UK retail investors are unlikely to have much exposure to, if any. The fund also profited from the uptrend in stock markets in the second half of 2017, before gradually reducing its positions after markets reversed in February. One differentiating feature of the fund is its ability to take short positions – and two of the biggest contributors to performance year-to-date have indeed been short positions, in crops and short-term interest rates.
What role should the fund play in an investor’s portfolio?
The Winton Absolute Return Futures Fund is appropriate for investors seeking to allocate part of their portfolio to an absolute return strategy; for those targeting conservative capital appreciation over the long-term; and for investors that desire exposure to multiple asset classes and markets as part of a diversified portfolio.
How can I access the fund?
The Winton Absolute Return Futures Fund is widely available and currently accessible on many of the UK’s biggest brokerage platforms. Please see the fund page for more details.
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 Past performance is not indicative of future results.
The Winton Absolute Return Futures Fund (the "Fund") is a sub-fund of Winton UCITS Funds ICAV (the "Company"). The Company is authorised by the Central Bank of Ireland as an undertaking for collective investment in Transferable Securities pursuant to the UCITS Regulations. This document is prepared by Winton Capital Management Limited ("Winton") which is authorised and regulated in the United Kingdom by the Financial Conduct Authority. Registered Office: 16 Old Bailey, London EC4M 7EG.
This document is a summary only and potential investors must refer to the prospectus, the supplement and the Key Investor Information Document ("KIID") for the Fund available on the fund page. This document is not a recommendation to purchase or sell any investments.
The value of an investment and any income derived from it can go down as well as up and investors may not get back their original amount invested. The information in this document is believed to be materially correct but Winton makes no representation or warranty as to its accuracy or completeness and accepts no liability for any inaccuracy or omission. This material is not suitable for distribution in the United States or to US Persons.
Who is the Fund for?
- Investors seeking conservative capital appreciation over the long term.
- Investors seeking a strategy that has the potential to provide positive returns in a variety of market environments.
- Investors seeking exposure to multiple asset classes and markets as part of a diversified portfolio.
Key risks to consider
- Absolute return – The Fund aims to provide positive returns over a rolling three-year period, but a positive return is not guaranteed over any time period and capital is at risk.
- Derivatives – The Fund invests in futures and forwards, which are financial derivative instruments that can increase the size of gains and losses.
- Commodity-related and macroeconomic risk – – The Fund will gain exposure to the performance of equity indices, government bonds, interest rates, currencies and commodities, all of which can be volatile and influenced by economic and political developments.
- Process risk – There may be issues with the systems and mathematical models that Winton uses to implement the Fund's strategy or the processes and procedures related to those systems.
A more comprehensive list of risks is provided in the Company's prospectus and Fund supplement.