Man announces launch of managed futures product

Date: Tuesday, January 27, 2009
Author: Hedgeweek.com

Man has launched a product which it says offers investors the opportunity to profit from managed futures - a strategy that has historically provided strong returns, valuable diversification benefits and good downside protection.

It is the first time in several years that access to AHL is offered on a global scale.

Man AHL Diversified Strategies allocates to the AHL Diversified Programme, which generated a return of 33.2 per cent in 2008 - a year in which markets experienced extraordinary turbulence.

Since inception in 1996, it has generated an annualised return of 20.1 per cent.

The AHL Diversified Programme is based on a quantitative and predominantly directional investment strategy, which is highly diversified across over 150 highly liquid and transparent markets including commodities, currencies, stocks and bonds.

Upward and downward price trends in these markets are identified and capitalised upon.

Man AHL Diversified Strategies offers investors a choice of currencies and risk/return profiles. The product is offered in USD and EUR guaranteed bonds as well as non-guaranteed USD income bonds. The guaranteed bonds are offered with a 100 per cent capital guarantee from Credit Suisse International and are designed to generate a higher capital return, while the income bonds will pay a non-discretionary, fixed annual coupon.

Investors can also select a balance between capital guaranteed and income bonds, enabling them to tailor the portfolio to their own investment objectives.

Christoph Möller, global head of distribution at Man Investments (photo), says: 'We believe Man AHL Diversified Strategies will generate a lot of interest since it is a great portfolio enhancer. It has the potential to offer a low or even negative correlation to stocks and bonds, and therefore reduce the volatility of a portfolio whilst offering an additional source of return.'