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How does the Man GLG Global Investment Grade Opportunities Fund invest?
Fixed-income funds

How does the Man GLG Global Investment Grade Opportunities Fund invest?

The Man GLG Global Investment Grade Opportunities fund invests in a portfolio of global fixed income instruments, mainly in Europe, with investment grade ratings and considering ESG aspects.
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13 MAY, 2024

By Andrea Sepúlveda from LatamSelf

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The fund Man GLG Global Investment Grade Opportunities offers a globally diversified investment strategy, with good results, managed by an experienced team within a company with a solid infrastructure and a commitment to innovation and responsibility. In this analysis, we explain everything you need to know about this strategy.

Characteristics of the Man GLG Global Investment Grade Opportunities fund

The fund Man GLG Global Investment Grade Opportunities is a fund domiciled in Ireland, launched in November 2021, which invests in a portfolio of global fixed income instruments, mainly in Europe, with investment grade ratings and considering ESG aspects. In fact, this fund falls under the article 8 of the SFDR.

MAN Group was founded in 1783, so it boasts over 230 years of history, even though it has over 25 years of experience in managing global investments. MAN Group seeks to respond quickly to offer the best opportunities to its institutional and private clients. In numbers, the MAN group has assets under management of over 175 billion US dollars as of March 2024, distributed in alternative and active long only investments. The management company is strongly committed to three main aspects: Talent, Technology and Sustainability.

  • Investment strategy: Its strategy is active and unconstrained. Therefore. According to the management company, this fund will invest at least 80% in Investment Grade instruments and may invest up to 20% in instruments below investment grade or in unclassified values. It is important to note that cash values or equivalents will be considered as investment grade values. In addition, the fund can actively use derivative financial instruments. As for the regions, the fund is not expected to have a geographical or sectoral orientation, but it is allowed to invest up to 30% in emerging markets.
  • Investment philosophy: the investment philosophy of the team is based on a high conviction approach supported by rigorous analytical techniques and a solid risk management discipline. Therefore, portfolio managers primarily use a bottom-up investment approach, that is, assessing the risk and expected return of each individual issuer in the portfolio.
  • Benchmark: This fund aims to achieve a higher return than the ICE BofA Global Large Cap Corporate Index (USD Hedged). The index is only used for comparison purposes, as the fund team has no restrictions on the sectors or companies in which it invests, as the fund also takes into account ESG aspects.
  • Investment team: The investment team is led by Jonathan Golan, who has been managing the fund since its inception in November 2021. He is a partner and portfolio manager within Man Group's Discretionary division, focusing on corporate bond and dynamic credit strategies. Before joining Man, the portfolio manager was a fund manager at Schroders.
  • Assets: At the end of March 2024, the strategy had approximately 1.4 billion US dollars in assets under management.

Evolution of the Man GLG Global Investment Grade Opportunities Fund

Yearly performance of the fund vs the Benchmark
Statistics since inception
Source: Monthly Report Man GLG Global Investment Grade Opportunities (I-USD), March 2024

This is a fund with a good track record, even though it has not yet reached the three years of history necessary to evaluate with this time horizon (essential for an institutional investor).

However, so far the fund has achieved excellent results compared to its benchmark (ICE BofA Global Large Cap Corporate Index) while having sustainability considerations. In fact, it not only takes into account sustainability criteria for selection, but also has exclusion criteria for companies that might be linked to weapons and ammunition, nuclear weapons, tobacco, and coal-related activities.

Positioning of Man GLG Global Investment Grade Opportunities

Portfolio maturity breakdown and credit rating breakdown, both vs the benchmark statistics

The fund has a average duration shorter than the index and, at the same time, maintains instruments with a lower and more concentrated credit quality in BBBs compared to its benchmark. Therefore, the fund team aims for a bit of High Yield to complete its selection in Investment Grade.

This is a product that, while remaining investment grade, has a riskier touch and, let's not forget, ESG considerations at the same time. All these charts serve to visualize the fund's activity and the fact that it can deviate substantially from the issuer, country and sector weights of the reference index.

Conclusions

Advantages

  • Distinguished History and Track Record
  • Institutional Size
  • Support from the management company
  • ESG Criteria + good results

Disadvantages

  • The fund still has little time to evaluate further risk measures and different time horizons such as 3, 5 or 10 years.
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