Man Dynamic Allocation

Man Dynamic Allocation ('Man DNA') harnesses the best of Man Group in a single global multi-asset approach, actively allocating across equities, bonds and alternative1,2 strategies.

  • Combines absolute return and long-only strategies to target ‘’Adjusted SONIA’’ + 4 % (gross of fees)3, with an expected annualised volatility of 6-8%
  • Invests in bespoke strategies managed by specialist teams across Man Group
  • Aims to achieve its return objectives through multiple return drivers: traditional risk premia, alternative risk premia, security selection alpha and asset allocation alpha
  • Accesses alternative strategies2 across Man Group, including Man Alternative Risk Premia strategies, designed and managed using Man Group’s expertise developed over 30 years of absolute return investing
  • Active tail hedging using in-house expertise seeks to mitigate downside

Furthermore, the Man DNA strategy benefits from specialist tail hedging which seeks to mitigate significant downside as well as risk management at multiple levels.

1. The strategy may allocate to certain strategies which may include, but not be limited to, those which focus on equities, fixed income, alternatives and risk premium strategies.
2. Alternatives may include exposure to certain alternative risk premium strategies.
3. ‘’Adjusted SONIA” refers to the Sterling Overnight Index Average rate (SONIA) administered by the Bank of England, to which a term adjustment (SONIA observed over a 3 month period and compounded in arrears daily during that period) and the additional "0.1193%" represents the industry fallback spread (reflecting the historical difference between to 3-month GBP LIBOR and SONIA) is applied.

Approach

The Man DNA team consists of two Portfolio Managers, Adam Singleton and Henry Neville, with Adam acting as lead PM. They are supported by Ikitsa Anastasov, a fixed income and derivatives specialist. The team benefits from access to extensive resources from across Man Group, including strategy management teams, tail risk hedging specialists, risk management, compliance and central execution professionals.

The Man DNA strategy aims to achieve its return objectives through the following return drivers:

  • Traditional equity and alternative risk premia - Man DNA aims to harvest risk premia from traditional equity and bond exposures, as well as alternative sources1 across asset classes, with the long term expectation that each should make indispensable contributions at different times
  • Security selection alpha - Through security selection within equity and fixed income allocations managed by specialist teams from across Man Group, who create bespoke books for Man DNA
  • Asset allocation alpha - Through variations to the allocations by the DNA portfolio managers using a disciplined proprietary ‘Fire & Ice’ allocation framework, with a particular focus on inflation-protection. These variations can apply to the overall exposure level of the strategy as a whole; to the proportions allocated to the three asset classes; and to the allocations to the strategies within asset classes. In addition, the DNA portfolio managers can also express views in an book of additional macro exposures such as duration adjustments to the bond exposures.

Furthermore, the Man DNA Strategy benefits from specialist tail hedging which seeks to mitigate significant downside as well as risk management at multiple levels.

Approach Alternative
Asset Class Multi-Asset
Geographic Focus Global

1. Alternatives may include exposure to certain alternative risk premium strategies.