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Man Funds VI PLC - Man High Yield Opportunities Fund

Global high yield corporate bonds. Active strategy with hedge fund-style leverage and credit long-short features.

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About the Fund

Data as of

Man Group has its roots as a commodities trader since 1783, and diversified into financial services in 1983. Man is best known as the world’s largest publicly trade hedge fund company managing over US$220bn of assets and providing investment funds in liquid and private markets, having acquired various industry leading hedge fund and private markets managers as subsidiaries including quantitative Man AHL and Man Numeric, discretionary Man GLG, and direct lending Man Varagon.

The Man High Yield Opportunities Fund is an actively managed bond strategy that aims to provide income and capital growth by investing in fixed and floating rate non-investment grade bonds globally (typically >70% in pan-European and USD denominated corporate bonds) with no credit rating or currency constraints. The fund principally uses a bottom-up approach. Investment process starts with an evaluation of the global fixed income universe, then an initial screen of various financial measurements is applied to shortlist issuers that are solvent, with sustainable financial fundamentals, and low likelihood to default on the bonds. Top-down macroeconomic views supplement the bottom-up approach to a lesser extent.

The fund may use leverage and take short positions. The portfolio is expected to be able to leverage up to 500% of net asset value through the use of derivatives. The portfolio will typically have 70-200% long positions and 0-100% short positions. The fund has a concentrated portfolio of >270 holdings (long and short positions totalled).

Performance

Price Performance – Maximum Period

The FairHorizon Context

Investment-Time-Horizon in years

0 - 22 - 44 - 7 7 - 1010 - 1515+
Expected long-term return
5 – 7% p.a.
Expected volatility
7 – 10% p.a.

Building Block Returns

Man Funds VI PLC - Man High Yield Opportunities Fund

Ann. return (3-year):
10.58%
Ann. return (5-year):
5.89%
Ann. return (10-year):
—
Ann. Standard Deviation (5-year):
5.71%

This fund represents an active approach for exposure to global high yield corporate bond market segment, with leverage and credit long-short features.

Benchmark Returns

iShares Global High Yield Corp Bond UCITS ETF

Ann. return (3-year):
8.03%
Ann. return (5-year):
2.76%
Ann. return (10-year):
3.82%
Ann. Standard Deviation (5-year):
8.88%

FairHorizon Benchmark Returns

Dimensional Funds PLC - World Allocation 60/40 Fund

Ann. return (3-year):
13.21%
Ann. return (5-year):
6.85%
Ann. return (10-year):
—
Ann. Standard Deviation (5-year):
9.75%
Link to the Funds FairSheet

The Dimensional World Allocation 60/40 Fund is our FAIRHORIZON Yellow reference benchmark solution that has 60% global developed equities and 40% global investment grade short-to-medium maturity bonds for global high risk bonds-like or multi-asset returns and volatility.

SHARING OUR PASSION FOR INVESTMENTS FAIRSHEET™  Man Funds VI PLC - Man High Yield Opportunities Fund  Page 1/2

Why we prefer this fund

Relevance of strategy

This fund represents an active approach for exposure to global high yield corporate bond market segment, with leverage and credit long-short features.

Manager expertise

The fund is managed by the Man GLG subsidiary, which was known as GLG Partners prior to Man’s acquisition in 2010. Man GLG is a discretionary investment manager with a diversified product offering range including equity long-short funds, convertible arbitrage funds, emerging market funds and long-only mutual funds.

Differentiated portfolio

The fund combines typical global high yield bond exposure with hedge fund-style investing. Through leveraging and long-short approach, the fund provides a high octane high yield bond solution with higher return expectations as well as more complex risk considerations.

Historical maximum drawdown & recovery time

Max drawdown (since inception)
-16.13%
Recovery Period
419 Days

Diversification

Credit Rating

  • Baa0.31%
  • Ba30.22%
  • B51.78%
  • Caa7.38%
  • C0.02%
  • Cash & Other9.69%
  • Others0.60%

Sectors

  • Financials18.04%
  • Consumer Discretionary12.82%
  • Industrials9.97%
  • Cash & Other9.89%
  • Communications9.85%
  • Health Care9.10%
  • Consumer Staples7.00%
  • Energy6.55%
  • Real Estate4.41%
  • Materials4.00%
  • Utilities3.41%
  • Others4.96%

Geography

  • Europe ex UK23.36%
  • United Kingdom22.97%
  • North America22.88%
  • Latin America15.96%
  • Cash & Other9.91%
  • Asia ex Japan2.17%
  • Middle East1.91%
  • Japan0.64%
  • Others0.20%