Australasia - case study

Rewards through experience

Man has built a pre-eminent position in the Australasian market and is now the largest provider of structured alternative investment products for private investors in the region.

Profile of Australian investors in Man products

Investors in the Man OM-IP funds have traditionally been private investors, from individual retirement investors through to high net worth individuals, and pension funds. The business has grown through a strong history of fund performance, the support of financial advisers and banks and the efforts of our client service, sales and administration teams.

The Man OM-IP funds have a minimum investment of AU$5,000 ($3,500) and offer monthly liquidity with a capital guarantee and rising guarantee. It is these features, combined with the performance and diversification the funds provide, that have attracted over 116,000 investors in 34 funds in the past 13 years.

Australian superannuation industry

The Australian investment industry is supported by regular flows of money coming from the compulsory superannuation legislation, where all Australian workers contribute 9% of their salary to their own pension plan. With the investment industry managing about $1 trillion, Australia has the fourth largest pool of pension assets in the world.

The sector is dominated by 575 superannuation funds with a total of $570 billion in assets. The balance is largely accounted for by nearly 600,000 self-managed super funds, typically run by wealthy individuals and families, with a combined AU$290 billion ($200 billion) in assets.

Why do investors choose to invest in Man products?

Man’s flagship product in Australia is the first IP220 fund in the region - Man OM-IP 220 Limited. Launched in August 1997 with a term of eight years, 60% of shareholders elected to continue their investment for an additional 10 years after reaching the original maturity date in June 2005.

Each share in Man OM-IP 220 has grown from AU$1.00 in 1997 to AU$5.4466 at 31 March 2009, with a rising guarantee of AU$4.5987.

Market trends

The Australian investment market has a significant number of investment managers and financial intermediaries. Some 600 managed funds are available to Australian investors. The past 10 years have seen a growth in aggregators - master funds and wrap accounts - that have become a one-stop shop for investors to choose their investment products from a menu. Man has developed open-ended fund products that can become an investment choice on these menus which will provide consistent investment inflows for the future.

What’s unique about our business in Australia compared to our competition?

Man pioneered the alternative investment and structured product sectors in Australia. Having been first to market with the Man OM-IP funds as early as 1997, Man has steadily grown its franchise in the Australasian region. With the funds having performed through various market conditions, Man's reputation has been enhanced, particularly through the current financial crisis.

Key areas of focus/growth opportunities

The compulsory superannuation regime provides a consistently expanding investment pool in Australia. With a growing interest in alternatives and a large acceptance of the asset class in the Australian market, there are significant opportunities for Man to grow the Australian franchise. Key opportunities exist in the institutional market and with open-ended funds.