Man Group’s flagship Alpha fund attracts rating upgrade

From

Damien McIntyre

Man Group’s flagship Man AHL Alpha fund has received a ‘Recommended’ rating from research house Lonsec, recognising the fund’s strong performance over the past two years of operation in the region.

A ‘Recommended’ rating indicates that Lonsec has strong conviction the financial product can generate risk adjusted returns in line with relevant objectives and that it considers the financial product an appropriate entry point to this asset class.

Man AHL Alpha is a trend following oriented hedge fund which invests across a range of asset types and markets globally, via exchange traded futures and OTC contracts. The investment team utilises a quantitative-based, computer-driven trading program to exploit price movements in some 450 international markets, with the program underpinned by sophisticated risk management techniques.

GSFM has been responsible for retail distribution of the London-headquartered fund in Australia and New Zealand since 2017.

Commenting on the rating upgrade – from ‘Investment grade’ to ‘Recommended’ – GSFM chief executive, Damien McIntyre, said the Lonsec assessment gives further credence to the decision to act as the fund’s local distributor, and why it continues to attract such strong interest from Australian investors.

“Man AHL Alpha has a long heritage and track record and is managed by highly-qualified, long-standing investment professionals.

“At GSFM, we’ve been well aware of the potential of this fund for some time, so it’s pleasing to see that the robust and quality-driven approach to the underlying investment strategy has been recognised and rewarded by an independent third-party,” he said.

In assessing the fund, Lonsec’s product review report noted Man AHL Alpha’s large and high-quality investment team, with execution considered a particular area of strength.

“Compared to most peers, the fund’s generally shorter horizon models are potentially better suited to provide greater convexity to an equity biased portfolio in v-shaped markets.

“It trades a highly diverse and differentiated set of markets compared to peers which may provide greater diversification benefits,” the report said.

The ratings upgrade follows the move by GSFM earlier this year to further strengthen its partnership with Man Group and distribute a second Man retail fund offering in Australia and New Zealand – the Man Diversified Alternatives Fund.

In all, GSFM’s range of specialist funds management partnerships in the Australian market totals seven. These span Australian equities, global equities, global fixed income, alternative investment strategies, absolute return through global equities and global smaller companies.

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