Sun, Apr 22, 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. Investing - Sequoia takes Facebook stake as shares slide in data controversy, $1.4b hedge fund sees intact fundamentals for Facebook, Jim Cramer reveals some 'suggested hedge fund trades' amid the Trump tariffs[more]

    Sequoia takes Facebook stake as shares slide in data controversy From Bloomberg.com: The $4.2 billion Sequoia Fund bought a small position in Facebook Inc. as the stock slid late in the first quarter, investment manager Ruane, Cunniff & Goldfarb told clients. "The recent controversy enab

  2. Activist Investors - Blue Sky-owned Wild Breads faces uncertain future[more]

    From AFR.com: A Blue Sky private equity investment in artisan-style baker Wild Breads enjoyed multiple valuation upgrades despite losing millions and breaching its lending covenants, accounts lodged with the regulator last week show. Wild Breads lost $2.4 million in 2017, but Blue Sky ascribed a hig

  3. Opalesque Exclusive: Barnegat to close hedge fund to outside investors on weak opportunities[more]

    Komfie Manalo, Opalesque Asia: Bob Treue's Barnegat Fund Management said it is closing its $666m fixed income relative value hedge fund to outside investors. "The negative side to gains in Fixed Income Arbitrage is that unless we find new opportunit

  4. Investing - Hedge fund makes a big bet on malls, British hedge fund manager Odey short UK government bonds on QE bet[more]

    Hedge fund makes a big bet on malls From Barrons.com: The dominant narrative on American shopping malls is that they're dead. Crushed by Amazon.com, many brick-and-mortar retail stores are destined for bankruptcy. And where is the most retail, clustered all together? Malls. From a

  5. Performance - Hedge funds suffer first back-to-back loss in two years, Netflix performance burns hedge fund short sellers, Macro hedge fund up 14.5% in first quarter sees dollar falling, Renaissance Technologies rebounds across hedge funds in March[more]

    Hedge funds suffer first back-to-back loss in two years From Bloomberg.com: Hedge Fund returns sank for a second straight month in March, the first back-to-back loss since the first two months of 2016, as trade wars, tech-sector woes and a Fed rate hike dragged down the S&P 500 from its