The latest news in investment offerings, financial products and other services relevant to wealth advisors and their clients.

Man Group
Man Group, a global alternative investment manager, has launched two additional exchange traded funds (ETF): Man Active Emerging Markets Alternatives ETF and Man Active Trend Enhanced ETF. The actively managed funds, listed on Nasdaq, aim to provide capital growth over the medium to long term and bring the firm’s ETF offering in the US wealth market to four funds.

Under normal circumsances, the Man Active Emerging Markets Alternatives ETF will invest at least 80 per cent of its net assets, plus any borrowings for investment purposes, in equity and equity-related securities of emerging market issuers. The fund generally considers emerging market countries to be those represented in the MSCI Emerging Markets Index. The fund’s strategy is to identify stocks with prospects of long-term value creation often missed by short-term oriented investors; it will objectively evaluate company fundamentals and intangibles using data-driven models and advanced machine learning with human oversight.

Daniel Taylor and Ben Zhao are the portfolio managers primarily responsible for the day-to-day management of the fund.

“Emerging markets equities present an exciting opportunity to diversity equity risk away from the US and the Magnificent 7. This is an area where quantitative investing approaches have generally excelled, and active extension can potentially enhance the alpha opportunity, providing access to a strategy that sophisticated institutions have been employing for years,” Taylor said.

The Man Active Trend Enhanced ETF employs a quantitative model to identify investment opportunities across a wide range of global markets, targeting 100 per cent exposure to each of the two respective strategies. The equity strategy primarily consists of investing in US equity securities, US equity ETFs, and/or futures contracts on US equity indices. The fund will hold US Treasury securities, cash and cash equivalents as collateral for the fund’s investments in derivatives, as well as generating incremental income.

The fund is designed to combine US equity market participation with a systematic trend-following overlay across global futures markets.

Russell Korgaonkar and Giuliana Bordigoni are the portfolio managers primarily responsible for the day-to-day management of the fund.

“These funds are designed to complement traditional stock-bond allocations, improve diversification, and make portfolio construction more efficient,” Mark Bedford, global head of wealth, Man Group, said.

Headquartered in London and listed on the London Stock Exchange, Man Group manages $213.9 billion and operates across multiple offices globally.