September 22, 2020
The Man AHL Alpha (AUD) Fund aims to generate medium to long term returns by identifying and taking advantage of upward and downward price trends through trading in futures, options, forward contracts, swaps and other derivatives using the AHL Alpha Program.
Lonsec has upgraded the Man AHL Alpha Fund to a ‘Highly Recommended’ rating following its latest review.
According to Lonsec’s report, underpinning the rating upgrade is Man’s strong pedigree in trend following, specifically its commitment to research innovation which has differentiated the Man AHL Alpha from its peers over time.
The research house stated a key competitive advantage of the Fund is its diversification of traded markets, the experienced research team, execution infrastructure and platform, along with the model’s overall responsiveness. Lonsec considers these aspects to be particularly valuable from a diversification perspective to an equity biased portfolio.
True to label
For more than 30 years, Man AHL Alpha has consistently deployed a trend following or CTA strategy. While other trend following strategies have changed direction to become more multi-strategy focused over time, Man AHL Alpha has stayed true to label while evolving to increase the number of asset types and markets it invests across. This gives rise to a return stream which is generally uncorrelated to equity markets in the long term, but has the potential ability to perform strongly in times of stress.
March 2020, the month Covid-19’s pandemic status was officially declared, is a good example of this true to label trend following strategy delivering for investors.
As governments worldwide scrambled to implement controls to limit the spread of COVID-19, the anticipated impact of isolation and shutdown spread fear through financial markets. It was a unique set of circumstances: volatility rose to levels only seen in the depths of the Great Financial Crisis, central banks worldwide promised unprecedented packages of support and a dispute over oil production led to exacerbated falls in the price of crude, seeing a drop of 30% on 8 March alone.
Important information: The rating issued August 2020 is published by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421 445 (Lonsec). Ratings are general advice only, and have been prepared without taking account of your objectives, financial situation or needs. Consider your personal circumstances,read the product disclosure statement and seek independent financial advice before investing. The rating is not a recommendation to purchase, sell or hold any product. Past performance information is not indicative of future performance. Ratings are subject to change without notice and Lonsec assumes no obligation to update. Lonsec uses objective criteria and receives a fee from the Fund Manager. Visit lonsec.com.au for ratings information and to access the full report. © 2020 Lonsec. All rights reserved.