This post will explore Man AHL Diversified Guernsey, an investment fund from Man Group.
Man AHL focuses on systematic trading methods. With the goal of making money through a variety of products, the company analyzes various data sets across international marketplaces using modern tech.
Man AHL was initially established in 1987 as a Commodity Trading Advisor. Man Group acquired a majority share in 1989 and eventually attained full ownership in 1994. The company began as a trend-following business but has since transformed into a multi-approach investment firm.
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Some facts from the Man AHL Diversified factsheet might change from the time of writing, so potential investors shouldn’t decide to invest or not to invest based on this review alone.
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Man AHL Diversified Guernsey Features
Investors can access the AHL Diversified Program through Man AHL Diversified (Guernsey), which uses automated procedures to find opportunities and trends in a variety of asset classes in international markets. The scheme aims to produce medium-term profits.
Man AHL Diversified Fund
Founded on January 4, 2008, the Fund is responsible for managing assets worth 156.9 million USD.
It operates as an accumulating investment type non-UCITS fund. A minimum of 30,000 USD must be invested to start.
The investing strategy of the fund is multi-sectoral. It invests in stocks by taking long positions in various equity markets, giving it a large amount of exposure to broad market indices and industries including consumer discretionary.
The fund engages in long positions in energy, metals, and agricultural items in the commodities sector to maintain diversification.
The fund invests in fixed income instruments, taking both long and short positions in bonds and rates. Its net negative exposure to this industry is indicative of a cautious strategy.
The fund holds significant long positions in the credit markets and has a strong concentration on credit.
Moreover, the fund engages in active currency pair trading, utilizing both short and long positions to profit from currency movements.
AHL Diversified Fees
Without accounting for performance fees, the Man AHL Diversified Guernsey Fund has a total expense ratio of 4.26%. There is a 20% performance fee assessed by the fund in addition to an introducing broker fee of 1%.
AHL Diversified Performance
Currency pairs such as the Euro/Japanese Yen and sugar markets contributed positively to the portfolio. Commodities like crude oil and copper, however, had negative contributions.
In terms of performance, losses were logged for six months at -11.22%, year-to-date through April 30, 2023 at -4.24%, and 1 year at -8.22%.
However, the fund recorded positive returns of 2.82% for 1 month, 41.98% for five years, and 84.52% since rollout.
Pros and cons of Man AHL Diversified Guernsey
AHL Diversified Benefits
The fund’s ability to provide returns throughout a range of market circumstances is one of its main benefits. The automated investment program of the fund looks for patterns in different international asset classes.
Additionally, the fund has historically demonstrated a low correlation with conventional assets, which may make it a desirable choice for portfolio diversification.
AHL Diversified Risks
The fund’s somewhat high total expense ratio is one possible drawback. A sizeable amount of the fund’s earnings might go toward paying for overhead and fees, which could have an effect on investors’ total profit.
Additionally, there are market risks including currency, liquidity, and leverage that could affect the fund’s returns.
Although the fund attempts to mitigate these risks through its investing strategy, the actual worth of investments may still vary and you may lose any or all of what you originally invested.
When choosing to invest in the fund, you should carefully examine your investing targets, your tolerance for risk, and the related costs. It’s important to do extensive research and speak with a financial advisor too.
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