Managed futures provides efficient portfolio diversification
AHL, a core investment manager of Man Investments, has delivered through its flagship fund Man AHL Diversified plc a return net of fees of 33.2 % in 2008. Since its inception in 1996 this programme has yielded strong returns, and has been especially effective during periods of severe market downturns. The compound annual return amounts to 20.1% with an annualised volatility of 18.1%. This equates to a total return of 935.5%, compared with just 28.4% for world stocks over the same period, at a similar level of risk.
The AHL Diversified Programme uses managed futures to trade in more than 150 world markets in currencies, bonds, equities and commodities. It is a systematic, statistically based investment strategy designed to profit principally from rising or falling market trends. AHL Diversified does not deploy any externally-sourced leverage and trades in liquid futures markets. Due to its low correlation to traditional investments such as stocks and bonds, managed futures can effectively diversify traditional as well as alternative portfolios, enhancing returns and reducing risk at the same time. An additional benefit to investors is that the fund employs weekly liquidity.
CEO of Man Investments Middle East, Patrick Merville, said: “AHL’s rigorous investment approach, coupled with a stringent risk control framework, has delivered an impressive long-term track record with no year of negative performance since inception. Managed futures have been shown to add significant value as part of any diversified portfolio. We are proud that, yet again, AHL has delivered strong performance for its investors – in a particularly challenging market environment.”
