11 September 2009
The product will be managed by AHL, a division of Man Investments and one of the largest and most consistently successful trend following managers. Trend followers - often known as managed futures managers - seek to exploit persistent trends and other market inefficiencies in a systematic way using highly liquid futures markets. Their funds are designed to perform whether prices trend up or down with the result that returns tend to be uncorrelated with traditional stock or bond markets.
Man AHL Diversity is designed as a portfolio diversifier and is aimed specifically at sophisticated UK investors. Investors will be able to access the sterling denominated product with a minimum initial investment of £100 from the product's launch in October 2009.
Man AHL Diversity has exposure to more than 90 global markets and 29 international exchanges trading 24 hours a day, following trends in everything from currencies and interest rates to agricultural assets and metals.
Access to a world leading trend follower via UCITS III
Tim Wong, Chief Executive Officer of AHL, said: "Historically, the performance of trend following managers has tended to be uncorrelated to traditional stock and bond markets. We saw that with AHL's performance last year when its best performing fund delivered 33% at the same time as some equity markets fell 40%. Last year's performance clearly illustrates AHL's potential to reduce risk and enhance returns when added to a traditional portfolio of stocks and bonds, and this has captured the attention of investors."
Founded in 1987, AHL manages $20.4 billion (as at 31 March 2009) and has delivered a strong track record of performance.
A unique partnership with the University of Oxford
AHL's unparalleled track record has resulted from a continuous investment in people and systems and an acute focus on cutting edge research. This has been greatly reinforced through Man's funding of the Oxford-Man Institute (OMI) and the creation of AHL Oxford.
The Oxford University academics of the OMI and AHL's researchers in AHL Oxford share purpose designed premises, where AHL's researchers have already developed several valuable commercial applications. Now in its second year, this arrangement has created a stimulating environment that fosters day-to-day interactions between AHL and the university's academics and students, and has provided AHL with exposure to leading academic thinking from a worldwide network of experts and wide spectrum of disciplines.
About Man Group
Man is a world-leading alternative investment management business. With a broad range of funds for institutional and private investors globally, it is known for its performance, innovative product design and investor service. Man's funds under management at 30 June 2009 were $43.3 billion.
The original business was founded in 1783. Today, Man Group plc is listed on the London Stock Exchange and is a member of the FTSE 100 Index with a market capitalisation of around £4 billion.
Man Group is a member of the Dow Jones Sustainability World Index and the FTSE4Good Index. Man also supports many awards, charities and initiatives around the world, including sponsorship of the Man Booker literary prizes. Further information can be found at www.mangroupplc.com.
About The Dexion Capital Group
The Dexion Capital Group specialises in alternative investments. It was formed with the launch of Dexion Capital plc in August 2000, and is independent of any institution or fund management group. The Dexion Group consists of Dexion Capital plc, authorised and regulated by the Financial Services Authority, and Dexion Capital (Guernsey) Limited, authorised and regulated by the Guernsey Financial Services Commission. Over the past nine years Dexion Capital has gained a strong reputation and presence in the hedge fund sector as a marketing and advisory specialist.
Operations of the Dexion Group are broadly divided into four areas:
1. Marketing and distribution of listed and single manager products to a wide range of investors. Since inception in August 2000 Dexion Capital plc has raised over $4.5bn for various closed-ended hedge funds and funds of hedge funds. The extensive sales distribution network encompasses a significant proportion of banks, institutional asset managers and private client investment advisory firms within the UK and across Europe.
2. Client advisory and research, including the selection and structuring of hedge fund products, with a particular focus on sourcing and evaluating fund of hedge funds for institutional investors looking to diversify their portfolios.
3. Market Making Services to make markets in the investment trust sector, trading as principal on behalf of Dexion and effecting trades between clients on an agency basis (including acting as sales agent) this area also disseminates investment research in the investment trust sector.
4. Fund administration and investment management offering experienced administration and corporate secretarial services to companies and trusts through Dexion Capital (Guernsey) Limited. The firm acts as manager for Dexion Absolute Limited, Dexion Equity Alternative Limited, Dexion Trading Limited and Dexion Alpha Strategies Limited. These are structured as closed-ended investment companies and are listed on the London Stock Exchange.
The EU created the Undertakings for Collective Investments in Transferable Securities in 1985 to keep regulation up to speed with fast changing investment markets, to create a level playing field for funds established in different member states and to ensure that investors could be well protected by a single European regulator.
UCITS III funds:
- Can be sold anywhere in the EU;
- Are marketed through a simple prospectus;
- Cannot expose an investor to a loss greater than their original investment;
- Must be priced accurately, regularly and independently; and
- Must regularly report accurate and comprehensive information on the portfolio and underlying securities.