Wealth Manager - Essential news for investment professionals

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

Man Group teams with Nomura for fixed income fund

Man Group teams with Nomura for fixed income fund

Man Group and Nomura have joined forces to launch an Alternative Ucits fixed income fund designed to take advantage of the current low interest rate environment.

The alternative investment specialist will work with the Asian investment bank on the new strategy, which is called the Nomura Man Systematic Fixed Income UCITS Fund.

It is based on an underlying strategy run since summer 2012 by Man Systematic Strategies (MSS), which merged with Man’s managed futures arm AHL.

The new fund will be co-managed by Andre Rzym, who was former head of fixed income at AHL, and Stefan Sluke.

The fund will invest mainly in directional opportunities in emerging and developed swaps, futures and FX markets. It will trade a balanced portfolio of 50 markets based on 300 systematic trading signals.

Man Group said development of the fund had been focused on how it performs during periods of market stress. It therefore trades liquid instruments, uses low margin-to-equity ratio and does not pursue options with pronounced tail risk.

Commenting on the launch Sandy Rattray, CEO of AHL-MSS said: ‘Traditional fixed income investing is clearly challenged in the current environment with interest rates being close to zero per cent.’

‘In contrast, the backdrop for alternative fixed income investing is favourable: the competition for pursuing alpha opportunities has diminished as banks have reduced their risk taking in fixed income markets considerably since 2008, creating the potential to generate strong returns.’

‘However, it has been difficult for investors to tap into these opportunities in a UCITS-compliant way with daily liquidity. We are therefore pleased to make such an offering available to investors.’

This marks the latest development in a long-standing relationship between Man Group and Nomura which includes a $1.5 billion Japan fund as well as working together on asset raising. MSS will actively run the strategy, while Nomura will provide access via a range of investment products.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Sarasin’s Boucher: why I like salmon with chocolate

Sarasin’s Boucher: why I like salmon with chocolate

Henry Boucher, manager of the £129 million Sarasin Food & Agriculture Opportunities fund, explains why he is gobbling up salmon and chocolate stocks.

Play Alibaba hype, the UK slowdown and opportunities in European sovereign bonds

Alibaba hype, the UK slowdown and opportunities in European sovereign bonds

Libby Ashby and leading wealth managers analyse what the Alibaba IPO hype means for Chinese equities, slowing growth of the UK economy and whether there’s anything left to play for in the European sovereign bond market.

Play Tesco, Japan and the rise of the central banker

Tesco, Japan and the rise of the central banker

 Libby Ashby and leading wealth managers scrutinise the food retail sector, Japan’s consumption tax hike and political risk in the markets.

Your Business: Cover Star Club

Veteran banker boosts Sanlam’s stockbroking team

Veteran banker boosts Sanlam’s stockbroking team

A veteran private banker has been recruited by Sanlam Private Investments to strengthen its advisory stockbroking team.

Wealth Manager on Twitter