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Performance update
The Man OM-IP funds retraced by an average of -4.9%^ for the March quarter.
A series of unexpected events, such as the earthquake/tsunami in Japan, the political unrest in the Middle East and North Africa, and the floods in Queensland and Victoria, disrupted many trends and affected performance during the quarter.
This chart shows the contribution of each sector that AHL trades (as represented by the AHL Diversified Program).
Sector attribution of the AHL Diversified Program
January 2011 to March 2011
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| Currencies |
|
| Interest rates |
|
| Bonds |
|
| Energies |
|
| Metals |
|
| Stocks |
|
| Agriculturals |
|
| Credit |
|
Source Man Investments.
Note Past performance is not a reliable indicator of future performance. Performance figures are calculated net of all fees as at 31 March 2011.
^ Past performance is not a reliable indicator of future performance. The average performance figure for the Man OM-IP funds is an average quarterly return figure for all the Man OM-IP funds.
Performance over the long term
The Man OM-IP funds aim for medium to long term capital growth. The chart below shows the performance of the first Man OM-IP fund, Man OM-IP 220, since its inception. The performance, net of fees, is compared to Australian and global stock market indices.
Man OM-IP 220 vs stock market indices
1 August 1997 to 31 March 2011
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Source Man Investments Australia Limited.
Note Performance figures are calculated net of all fees as at 31 March 2011. Past performance is not a reliable indicator of future performance.
Fund prices for the Man OM-IP funds
The Man OM-IP funds below are closed to new investments. Please check products & prices for open funds. For more information on each fund, click on the fund name.
| Fund | Ccy | Inception | Valuation date | Rising Guarantee+ | Net Asset Value* |
|---|---|---|---|---|---|
| Man OM-IP 220 | |||||
| AUD | Aug 97 | 31 Mar 11 | $4.5987 | $5.6101 | |
| Man Series 2 OM-IP 220 | |||||
| AUD | Jan 98 | 31 Mar 11 | $4.3027 | $4.8670 | |
| Man Series 3 OM-IP 220 | |||||
| AUD | Jul 98 | 31 Mar 11 | $3.6965 | $4.0399 | |
| Man Series 4 OM-IP 220 | |||||
| AUD | Jun 00 | 31 Mar 11 | $3.1606 | $3.0274 | |
| Man Series 6 OM-IP 220 | |||||
| AUD | Jun 01 | 31 Mar 11 | $2.4016 | $2.2483 | |
| Man Series 7 OM-IP 220 | |||||
| AUD | Jun 02 | 31 Mar 11 | $1.3901 | $2.0757 | |
| Man Series 8 OM-IP 220 | |||||
| AUD | Nov 02 | 31 Mar 11 | $1.4330 | $1.8968 | |
| Man Series 9 OM-IP 220 | |||||
| AUD | Oct 03 | 31 Mar 11 | $1.1810 | $1.5367 | |
| Man Series 10 OM-IP 220 | |||||
| AUD | May 05 | 31 Mar 11 | $1.2155 | $1.5537 | |
| Man Series 11 OM-IP 220 | |||||
| AUD | Apr 06 | 31 Mar 11 | $1.0105 | $1.1690 | |
| Man Series 12 OM-IP 220 | |||||
| AUD | Dec 07 | 31 Mar 11 | $1.0000 | $0.9996 | |
| Man OM-IP 220 2008 | |||||
| AUD | Dec 08 | 31 Mar 11 | $1.0000 | $0.9452 | |
| Man OM-IP 320 Diversified | |||||
| AUD | Dec 98 | 31 Mar 11 | $2.0824 | $1.6518 | |
| Man OM-IP Strategic | |||||
| AUD | Aug 99 | 31 Mar 11 | $2.6834 | $2.1567 | |
| Man OM-IP Strategic Series 2 | |||||
| AUD | Dec 99 | 31 Mar 11 | $2.1429 | $2.0295 | |
| Man OM-IP Hedge Plus | |||||
| AUD | Jan 02 | 31 Mar 11 | $1.2221 | $1.3688 | |
| Man OM-IP 130 Plus | |||||
| AUD | Jul 03 | 31 Mar 11 | $1.5028 | $1.4870 | |
| Man OM-IP 140 Plus | |||||
| NZD | Aug 03 | 31 Mar 11 | $1.6060 | $1.6075 | |
| Man OM-IP 140 Plus (AUD) | |||||
| AUD | Jun 04 | 31 Mar 11 | $1.5879 | $1.5182 | |
| Man OM-IP 150 Plus (NZD) | |||||
| NZD | Jun 04 | 31 Mar 11 | $1.7016 | $1.6641 | |
| Man Series 2 OM-IP 150 Plus (NZD) | |||||
| NZD | Aug 05 | 31 Mar 11 | $1.5000 | $1.3533 | |
| Man Series 2 OM-IP 140 Plus (AUD) | |||||
| AUD | Aug 05 | 31 Mar 11 | $1.4000 | $1.1813 | |
| Man OM-IP MultiStrategy | |||||
| AUD | Jan 04 | 31 Mar 11 | $1.0661 | $1.0243 | |
| Man OM-IP 15seven | |||||
| AUD | Oct 04 | 31 Mar 11 | $1.1347 | $1.7099 | |
| Man Series 2 OM-IP 15seven | |||||
| AUD | Dec 06 | 31 Mar 11 | $1.0181 | $1.2271 | |
| Man OM-IP Stratum | |||||
| AUD | Dec 04 | 31 Mar 11 | $1.0358 | $1.2470 | |
| Man OM-IP 16eight | |||||
| AUD | Dec 05 | 31 Mar 11 | $1.0449 | $1.3782 | |
| Man OM-IP Eclipse | |||||
| AUD | Aug 06 | 31 Mar 11 | $1.1210 | $1.4065 | |
| Man OM-IP 2Eclipse | |||||
| AUD | Apr 07 | 31 Mar 11 | $1.0771 | $1.2646 | |
| Man OM-IP 3Eclipse | |||||
| AUD | Apr 08 | 31 Mar 11 | $1.0554 | $0.9905 | |
| Man OM-IP Eclipse 2010 | |||||
| AUD | Apr 10 | 31 Mar 11 | $1.0000 | $1.0431 | |
| Man OM-IP Vision | |||||
| AUD | Aug 07 | 31 Mar 11 | $1.0000 | $0.9906 | |
| Man OM-IP Essential | |||||
| AUD | Aug 08 | 31 Mar 11 | $1.0290 | $1.0957 | |
| Man OM-IP AHL | |||||
| AUD | Apr 09 | 31 Mar 11 | $1.0000 | $1.0183 | |
| Man OM-IP 2AHL | |||||
| AUD | Jul 09 | 31 Mar 11 | $1.0000 | $1.0142 | |
| Man OM-IP 3AHL | |||||
| AUD | Dec 09 | 31 Mar 11 | $1.0000 | $1.0609 | |
| Man OM-IP AHL 2010 | |||||
| AUD | Aug 10 | 31 Mar 11 | $1.0000 | $0.9587 | |
* Past performance is not a reliable indicator of future performance. Performance figures are calculated net of all fees as at the valuation dates shown for each fund.
+ The Capital Guarantee and Rising Guarantee applies to shares held on the maturity date and are subject to the terms of the guarantee for each fund.
Note: Man Series 5 OM-IP 220 matured on 30 June 2009.
The emergence of emerging markets
Until recently, investing in emerging markets was the preserve of adventurous investors who could afford to stomach the volatility historically associated with these markets.
Investors today, however, have the option of investing in balanced emerging market funds. In these funds, the diversification of geography, asset classes and financial instruments seek to insulate investors from the highs and lows of investing in a single emerging market.
Transition of power
Leading authorities, such as the World Bank and the International Monetary Fund, have suggested that we will see a huge transition in global power over the next 50 years or so. For example, the largest European economies are unlikely to feature among the world's top six superpowers by 2050, having been replaced by nations that are currently considered to be 'emerging'.

This shift in global prosperity should generate many opportunities for specialised, emerging market funds to capture.
Becoming more investor friendly
As countries such as Brazil, Russia, India and China (the BRIC economies) continue to make the transition to global powerhouses, their historical shortcomings – such as the lack of economic, political, regulatory and currency stability – are receding. Consequently, the leading emerging nations should continue to become more 'investor friendly' in the years ahead.
Importance of diversification
Diversification in emerging market funds is vital, as these markets are prone to swings in sentiment. This is especially true during times of market turmoil. A balanced, emerging markets portfolio usually includes emerging equities as well as emerging market bonds and currencies to help smooth the volatility traditionally associated with emerging equities.
Geographical diversification is also important because of the structural and macro-economic differences at a regional and country level. For example, Brazil and Russia are much more dependent on the energy cycle than India and China. A fund with an allocation to all four BRICs may therefore have better protection against energy shocks than a fund with an allocation to Brazil and Russia only.
Enhancing portfolios with emerging markets
An allocation to emerging markets has the ability to improve the risk/reward balance of traditional investment portfolios. This is because an emerging markets fund may add a broader range of geographies, industries and return drivers to a portfolio focusing exclusively on developed countries.
A multi-asset emerging markets fund that employs long and short positioning is likely to generate consistent investment returns. Ideally, the fund should provide dynamic investment coverage across asset classes and geographies, with an appropriate balance of long and short exposures.
Emerging market funds at GLG
Bart Turtelboom and Karim Abdel-Motaal are responsible for the range of emerging market funds at GLG. Watch an interview with Karim Abdel-Motaal below.
Global macro delivered 13.4% p.a. since 1990, but what is it?
The global macro strategy, as represented by the HFRI Macro Index, has demonstrated a consistent and persistent return stream since 1990. From January 1990 to March 2011, the HFRI Macro Index had a compound annual return of 13.4% p.a.#. It outperformed Asian and global stock market indices and had a lower volatility during this period.
HFRI Macro Index vs Asian and global stock market indices
January 1990 to March 2011
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| Since inception | HFRI Macro Index | MSCI World (Total Reutrn) Index | MSCI Asia Pacific (Total Return) Index |
|---|---|---|---|
| Compound annual return | 13.4% p.a. | 6.4% p.a. | 1.6% p.a. |
| Volatility | 7.7% | 15.6% | 20.9% |
Source Bloomberg.
Note Past performance is not a reliable indicator of future performance. Please note that the HFRI data over the past 4 months might change.
Global macro: a flexible strategy for investing in world markets
Global macro traders base investment decisions on their understanding of the economic, social and political situations in a particular jurisdiction, country or region. They invest and trade in equities, indices, currencies, commodities and interest rates based on their view of the world.
Because of the unpredictable nature of world events, global macro traders usually focus on risk. They often hedge their positions to help protect their investments.
For a more in depth look at the global macro strategy, read our report: The case for global macro.
Why global macro funds need liquidity
Risk management is one major factor global macro traders have to consider. Another is liquidity. The global macro approach is opportunistic and nimble. It uses highly liquid instruments to rapidly change positions as new opportunities are identified.
Because the world can change so quickly, traders need to be able to exit positions judiciously. And, as such, global macro funds generally aim to have a portfolio of liquid investments.
Global macro funds at GLG
Driss Ben-Brahim and Jamil Baz are responsible for the global macro funds at GLG. An article written by Jamil, Gambling for resurrection?, is available here.