Lonsec upgrades Man Group’s fund

Lonsec has upgraded the rating for the Man Group’s AHL Alpha fund to ‘recommended’ after two years of the fund’s strong performance.

Man AHL Alpha is a trend-following oriented hedge fund which invests across a range of asset types and markets globally, via exchange traded futures and OTC contracts, with the quantitative-based investment approach, the firm said.

Lonsec in its report praised the company for its high-quality investment team, “with execution considered a particular area of strength”.

“Compared to most peers, the fund’s generally shorter horizon models are potentially better suited to provide greater convexity to an equity biased portfolio in v-shaped markets.

“It trades a highly diverse and differentiated set of markets compared to peers which may provide greater diversification benefits,” the report said.

The rating upgrade followed the move by GSFM earlier this year to further strengthen its partnership with Man Group and distribute a second Man retail fund offering in Australia and New Zealand – the Man Diversified Alternatives Fund.

Commenting on the rating upgrade – from ‘investment grade’ to ‘recommended’ – GSFM chief executive, Damien McIntyre, said the Lonsec assessment gave further credence to the decision to act as the fund’s local distributor.

Man AHL Alpha fund v alternatives sector 10-year performance