- Flagship trend-following strategy, with strong long-term track record spanning almost two decades
- Has been able to profit in rising and falling markets
- Low correlation to equities and potential to deliver strong returns when equity markets are in crisis
- Designed by Man AHL, a pioneer in trend-following strategies for around three decades
Trends have been observed in markets for centuries and a body of academic literature has built up to explain their persistence1. Trend following strategies use sophisticated computer algorithms to identify trends, which allow them to trade hundreds of diverse markets simultaneously, and avoid biases introduced by human emotions.
The AHL Diversified Programme has a track record spanning around two decades. Strong performance has been delivered in a variety of market environments because of the programme’s ability to profit from trends, either up or down, in around 400 liquid markets across a variety of asset classes.
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, such as the equity bear market2 of 2000-2003 and the Credit Crisis3 of 2007-2009++.
|Investment Approach||Trend following|
Performance by calendar years
Past performance is not indicative of future results. Returns may increase or decrease as a result of currency fluctuations.
Please note that the performance data is not intended to represent actual past or simulated past performance of an investment product. The data is calculated in USD and is based on a representative investment product or products that follow the programme. An example fee load of 3+1% and 20% has been applied.
Please be aware that investments products involve risks, including the possible loss of the principal amount invested. Alternative investments can involve significant risks and the value of an investment may go down as well as up. The prices and performance of underlying products may be significantly different from the strategy performance shown here due to a number of factors including currency fluctuations, product specific trading restriction or regulatory requirements.
Man offers a comprehensive suite of investment solutions and formats that can be tailored and optimised to meet specific client needs. Our investment solutions offer optionality including: liquidity, control, investment restrictions, investor customisations and transparency.
Access to investment products and mandate solutions are subject applicable laws and regulations including selling restrictions and licensing requirements. Investment solutions listed above may not be compatible for all investment strategies and may be subject to minimum subscription requirements. Regional Funds: In additions to UCITS and AIFs registered across the EEA, a number of investment strategies are available in vehicles registered in Chile, Netherlands, Hong Kong, Japan, Singapore, South Korea and Switzerland.
++ The periods selected are exceptional and the results do not reflect typical performance.
1. For example http://www.nbim.no/en/transparency/news-list/2014/nbim-discussion-note-on-momentum-in-futures-market/.
2. Equity bear market: 1 April 2000 to 31 March 2003.
3. Credit Crisis: 1 July 2007 to 28 February 2009
One should carefully consider the risks associated with investing, whether the strategy suits your investment requirements and whether you have sufficient resources to bear any losses which may result from an investment:
Investment Objective Risk - There is no guarantee that the Strategy will achieve its investment objective.
Market Risk - The Strategy is subject to normal market fluctuations and the risks associated with investing in international securities markets and therefore the value of your investment and the income from it may rise as well as fall and you may not get back the amount originally invested.
Counterparty Risk - The Strategy will be exposed to credit risk on counterparties with which it trades in relation to on-exchange traded instruments such as futures and options and where applicable, ‘over-the- counter’("OTC","non-exchange") transactions. OTC instruments may also be less liquid and are not afforded the same protections that may apply to participants trading instruments on an organised exchange.
Currency Risk - The value of investments designated in another currency may rise and fall due to exchange rate fluctuations. Adverse movements in currency exchange rates may result in a decrease in return and a loss of capital. It may not be possible or practicable to successfully hedge against the currency risk exposure in all circumstances.
Liquidity Risk - The Strategy may make investments or hold trading positions in markets that are volatile and which may become illiquid. Timely and cost efficient sale of trading positions can be impaired by decreased trading volume and/or increased price volatility..
Financial Derivatives - The Strategy will invest financial derivative instruments ("FDI") (instruments whose prices are dependent on one or more underlying asset) to achieve its investment objective. The use of FDI involves additional risks such as high sensitivity to price movements of the asset on which it is based. The extensive use of FDI may significantly multiply the gains or losses.
Leverage - The Strategy's use of FDI may result in increased leverage which may lead to significant losses.
Model and Data Risk - The Investment Manager relies on quantitative trading models and data supplied by third parties. If models or data prove to be incorrect or incomplete, the Strategy may be exposed to potential losses. Models can be affected by unforeseen market disruptions and/or government or regulatory intervention, leading to potential losses.