Sat, Jan 20, 2018
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Opalesque Futures Intelligence

Manager Profile: What accounts for the success of the Nomura AHL launch in Japan?

Friday, June 03, 2011

Investors Respond to AHL Nomura Launch

Nomura Global Trend, an open-ended fund for the Japanese mass market, attracted $2 billion in a short time. Launched this April, it was initially reported to have raised $1.5 billion. It offers daily liquidity.

The product was developed by Man Group in partnership with Nomura and its investment program is Man Group's AHL managed futures strategy. The launch took place in the immediate aftermath of the earthquake and amid ongoing problems at the Fukushima Daiichi nuclear plant. The earthquake-nuclear crisis apparently did not deter Japanese investors.

What accounts for the success? Nomura Global Trend has certain special characteristics. It allows for exposure to high-yielding currencies. Investors can choose to have exposure to one of three currency baskets- Yen; Brazilian Real, Australian Dollar and South African Rand; or Chinese Renminbi, Indian Rupee and Indonesian Rupiah. Nomura Asset Management does the foreign exchange hedging. There is also potential for monthly dividends.

Man Group says that this is a new product concept and these features were especially appealing to the Japanese retail sector. No doubt an extensive distribution network and effort helped. The fund was marketed by a combined Man and Nomura team, who conducted more than a hundred seminars and study sessions throughout the Nomura branch network.

Man has extensive distribution relationships in Japan, including relationships with three out of the five largest security brokers and three of five big commercial banks. It is connected to over 40% of the publicly placed hedge fund market in Japan.

Another probable attraction for retail investors is AHL's long-term track record. Annualized returns are ahead of traditional asset classes and hedge funds as a whole (see table).

Nomura Global Trend is a prime example of the growing trend toward using the same system to develop different products and investment services, a theme discussed in several articles in this issue. AHL is the manager for a number of retail offerings, including two UCITS funds, Man AHL Trend and Man AHL Diversity.

These European mutual funds, launched in July 2009, have more than $750 million in assets. They had weekly liquidity but this May Man Group announced that it will offer a daily dealing facility.

AHL also expanded its operation in Hong Kong and will broaden its trading capabilities to include a renminbi share class. Total assets managed by AHL were at $22.8 billion as of March 31st.

Long-Term Comparison: 2001-2010 Annualized Return

‚ 

AHL 12.5%
Hedge fund composite (HFRI index) 6.9%
World Bonds (Citigroup World Government) 4.8%
World stocks (MSCI) 1%

‚ --------------------------------------------------------------------------------------

Source: Man Group Fiscal Year 2011 report



 
This article was published in Opalesque Futures Intelligence.
Opalesque Futures Intelligence
Opalesque Futures Intelligence
Opalesque Futures Intelligence
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. U.S. economy, inflation and alternative investments to dominate 2018 markets, says family office Wilmington Trust[more]

    Komfie Manalo, Opalesque Asia: The emergence of a late-cycle economy in the U.S., the mystery of inflation and growth from a domestic and global perspective, and the potential for alternative investments to prosper against a backdrop of rich valuations, low yields, and higher volatility are the t

  2. Performance - Some hedge funds deliver double-digit gains for 2017, Brevan Howard's hedge fund suffers biggest annual loss in 2017, Crispin Odey's flagship hedge fund plummeted about 20% in 2017, Profits fall 90% at ex-Morgan Stanley banker's hedge fund, Fannie-Freddie overhaul might mint hedge fund riches, losses[more]

    Some hedge funds deliver double-digit gains for 2017 From Reuters/Investing.com: A handful of hedge funds ended 2017 with double digit returns, their investors said, at a time the $3 trillion industry took in fresh money and posted its best returns in years, industry data show. Act

  3. Investing - Hedge funds start 2018 with record $19 billion bet on the euro, Hedge fund Kora Management invests in Satin Creditcare[more]

    Hedge funds start 2018 with record $19 billion bet on the euro From Reuters.com: Hedge funds have kicked off 2018 with their biggest bet ever on the euro rising, a clear vote of confidence in the single currency but, with positioning so stretched, one which could backfire in the near ter

  4. News Briefs - Mobius to retire from Franklin Templeton, Authorities decrypt smart phone of Princeton grad charged with killing Manhattan hedge fund dad, Investigators seize (more) antiques from hedge-fund billionaire Michael Steinhardt's collection[more]

    Mobius to retire from Franklin Templeton Emerging markets pioneer Mark Mobius will be stepping down as executive chairman of the Templeton Emerging Markets Group (TEMG) and formally retire from Franklin Templeton on 31 January. He will also be relinquishing his post as portfolio manager

  5. Comment - Seeding arrangements: Structure, approach, and the current market[more]

    From international law firm K&L Gates: Private fund growth has exploded over the last several years. While some areas are hotter than others, overall the industry has seen substantial growth. Existing managers have been able to launch larger funds and new managers have been able to successfully ente