Investors looking for a managed futures mutual fund have one more option as of July 1: The Abbey Capital Futures Strategy Fund (ABYIX), which was launched that day by the Irish alternative investment firm, Abbey Capital Limited. The fund has primary and secondary objectives of capital appreciation and income generation, and it will use a multi-manager approach to ensure a diversified mix of managed futures strategies.
The fund will be comprised initially of eight sub-advisors, and the assets allocated to each strategy are determined by Abbey Capital. Abbey Capital bills itself as a “leading multi-manager in managed futures” and says its track record of successfully allocating between multi-managers dates back to 2000.
The fund’s portfolio managers are Tony Gannon, CEO and CIO of Abbey Capital, and Mick Swift, Deputy CEO & Research Director of Abbey Capital. Gannon and Swift will focus their efforts on finding, allocating to and monitoring the fund’s underlying managers.
Sub-advisors and the strategies they bring to the fund are listed below:
- Altis Partners Limited: The Altis Emerald Futures Program
- Cantab Capital Partners : The Cantab Core Macro Program
- Eclipse Capital Management: The Eclipse Emerald Futures Program
- Graham Capital Management: The Graham Tactical Trend Program
- Harmonic Capital Partners: The Harmonic Emerald Futures Program
- P/E Global, LLC: The P/E Emerald Futures Program
- Revolution Capital Management: The Revolution Emerald Futures Program
- Trigon Investment Advisors: The Trigon Emerald Futures Program
Like other managed futures funds, the Abbey Capital Futures Strategy Fund is designed to exhibit low correlation to traditional asset classes such as stocks and bonds.
The fund’s prospectus lists commodities, financial indices, currencies, and equities indices as the underlying asset classes of its investments; with options, futures, forwards, spot contracts, and swaps as the instruments it uses to invest. Fundamental, technical, and strategies combining fundamental and technical elements may be employed by the fund’s diverse group of sub-advisors, and Abbey Capital can shift allocations between the sub-advisors to capitalize on opportunities.
No Performance Fees
Unlike many of the existing managed futures mutual funds, the Abbey Capital fund will not have any performance fees or swap fees from the exposure to the underlying managers of the fund. This is a significant difference from a cost perspective, and gives the Abbey Capital fund a distinct advantage from some other multi-manager funds in the market. The management fee for all three share classes (I, A and C) is 1.97%, and the expense ratios, after fee waivers and expense reimbursements, are 1.99%, 2.24% and 2.99% for class I, A and C, respectively. The minimum investment for Class I is $1 million, while class A and C shares can be accessed for $2,500.
According to Morningstar, funds in the managed futures category have returned an average of -1.11%, year-to-date, through July 15, 2014. This year’s top performing managed futures funds in that category have been the LoCorr Managed Futures Strategy Fund (LFMIX), at +10.31%; and the PIMCO TRENDS Managed Futures Strategy Fund (PQTPX), at +8.37%, through July 15, 2014.
For more information on the Abbey Capital Futures Strategy Fund can be found on the Abbey Capital website.
Note: This article was updated on 7/16/14 to make a correction in the funds that were listed as the best performing managed futures funds year-to-date.