Client offering
The Multi-Manager business provides a comprehensive client offering, a range of advisory solutions and support services tailored to meet specific investor requirements.
Both private and institutional investors are able to allocate to 'off-the-shelf' portfolios, such as Man Transparency, that allocate capital to a selection of managed accounts which is actively managed according to Man's strategic and tactical asset allocation process. Investors receive detailed risk reporting on aggregated exposures, daily estimates, weekly performance statistics and monthly liquidity.
Institutional investors have the additional flexbility of allocating to customised portfolios designed to meet their specific risk/return objectives and the structuring requirements of regional markets, both onshore and offshore. These bespoke portfolios can also be created for investors that want the ability to co-manage by having input into asset allocation and manager selection decisions, while benefiting from Man's infrastructure, industry knowledge and risk insight. These tailor-made advisory solutions are becoming the model of choice in local markets ranging from Italy and Germany in Europe to Korea and Taiwan in Asia. Products can be built to meet cross border and local regulations such as UCITS III.
A further level of customisation has been developed over the course of 2009–10 to provide large, sophisticated institutional investors with direct access to Man's managed account infrastructure and experience. In January 2010 Man was selected by the Universities Superannuation Scheme (USS), the UK's second largest private-sector fund, as the preferred provider for a mandate that could potentially reach around $1 billion. Investor Solutions
Multi-Manager Benchmarks: Performance to 31 March 2010
| Annualised Returns | Risk (3 years) | |||||
|---|---|---|---|---|---|---|
| Product Type | 3 years | 5 years | Annualised Volatility | Worst Drawdown | ||
| Highly Diversified | Man Four Seasons Strategies | –1.1% | 2.8% | 6.6% | –18.1% | |
| Diversified | Man Dynamic Selection | 3.8% | 6.0% | 6.4% | –9.5% | |
| Thematic | Man Commodity Strategies | 2.2% | 9.2% | 6.5% | –10.5% | |
| Structured product | Man IP220 USD-class bonds | 5.7% | 7.7% | 17.4% | 20.8% | |
| World Stocks | MSCI World Total Return Index | –7.7% | 1.0% | 22.2% | –53.6% | |
| Hedge Fund Industry | HFRI Funds of Funds Composite Index | –1.7% | 2.9% | 7.7% | –22.2% | |
| HFRX Investable Global Hedge Fund Index | –3.2% | 0.9% | 8.9% | –25.2% | ||
Risk management
Risk management is a pervading culture rather than simply a component of the investment process. Man's significant resource dedicated to the function drives our ability to deliver transparency, liquidity and control to investors.
We take a holistic approach to risk management, which is applied to our market, credit, liquidity, financial and operational risks throughout the multi-manager business. Risk management is fully integrated into the investment process with dedicated teams working together to ensure a structured approach at all levels. Risk Management's reporting lines are completely independent from investment management.
One of the factors in successfully enhancing the transparency our investors receive has been thorough risk reporting. We seek to provide investors with a clear picture on the fundamental questions surrounding their investments
- Return information and attribution – what are the sources of returns?
- Risk information and attribution – what are the sources of risks?
- Time Perspective – what is the current level, its monthly change and its history?
Active portfolio management and performance
All portfolios are structured to optimise returns for the level of risk taken across the market cycle and to limit potential downside during adverse market conditions. Portfolios are constructed to three specific mandates
- Discretionary portfolios
- Guided asset allocation
- Structured products.
Over the course of the year the Man Multi-Manager has delivered performance in line with its targeted low-beta, diversified approach. In general this approach saw it underperform in the beta-driven markets of 2009 but outperform in 2008, giving an annualised three year performance in line with its peer group, but with lower levels of volatility.
Our dedication to research and portfolio management across all hedge fund styles has meant that thematic portfolios have delivered strong performance, with the Emerging Market Opportunities Fund and the Energy Fund recently winning industry awards.
