Man Group plc today reported that its newly created multi-manager business grew assets held in managed accounts from $4 billion to $6 billion in the six months to 30 September 2009. Man’s multi-manager business, which has been operational since June, ended the period with $17.8 billion in funds under management.
A managed account, or ‘MAC’, is a fund which is owned by the investor and controlled by independent third party providers. The MAC’s trading strategy typically mirrors the strategy of an existing investment fund, but the investment mandate can be tailored to meet specific portfolio management requirements. MACs can deliver control of assets, transparency and independence benefits in comparison to a conventional commingled fund structure.
Over the past ten years, Man has built a significant managed accounts platform as an investor, in contrast to the flow driven business model of other providers which tend to focus less on the underlying investment management application. This means that in addition to the security, transparency and liquidity that managed accounts provide, Man can also offer ongoing portfolio monitoring and risk management oversight, bespoke and transparent investor reporting, as well as portfolio investment advice.
Peter Clarke, Chief Executive of Man, comments: “An increasingly important part of our engagement with institutional investors is centred on our managed accounts capability, in response to their increasing demands for transparency, liquidity and control. A key differentiator of Man from other MAC providers is that we construct portfolios based on our confidence in the underlying manager, the manager’s ability to support our MAC operating model, and our understanding of how their strategy contributes to a particular portfolio mix.”
Man maintains top Fitch Rating
Following the successful integration to create Man’s new multi-manager business in June, Fitch Ratings recently announced that Man has maintained its ‘M2+’ rating, one of the highest possible ratings awarded to a multi-manager. In its latest report, Fitch commented that Man’s rating reflects the swift consolidation of its multi-manager operations and the refinement of the investment management process.
Peter Clarke adds: “In late March we first announced our plans to create a world-leading multi-manager business that addressed head-on investor requirements for increased transparency, corporate governance and risk management. Receiving one of the highest possible ratings from Fitch is a powerful external validation of our multi-manager business and testament to the huge amount of work by people across the business to make it such a success.”
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