Man AHL launches second target risk fund with mutual fund giant

Man AHL has teamed up with American Beacon Advisors to launch a new systematic strategy in a mutual fund format. The American Beacon AHL TargetRisk Core Fund, is the third mutual fund to be sub-advised by London-based Man AHL. The fund is a long-only dynamic risk managed strategy that invests in global bonds and equities through futures contracts. The allocations are scaled based on market volatility ,with an emphasis on risk management. The aim is to reduce overall drawdowns and exposure to swings in volatility, while providing long-term excess returns regardless of market conditions. The offering builds on three decades of Man AHL’s unique brand of quantitative investing and employs three proprietary risk managed overlays that engage systematically based on the market environment factors of volatility, momentum and correlation. “We’ve had a strong strategic partnership with American Beacon for over six years, and we’re pleased to bring this new product to investors through the firm’s extensive distribution network,” said Russell Korgaonkar, chief investment officer of Man AHL. “We believe that dynamic risk management will make the difference in generating returns over the long run, and that this systematic approach can provide investors with a smoother experience as they navigate choppy and unpredictable markets.” Man AHL fund’s under management as of September 30 were $39 billion. In addition to the new fund Man AHL also sub-advises American Beacon AHL Managed Futures Strategy Fund and American Beacon AHL TargetRisk Fund that have a combined total of $1.9 billion in assets. The TargetRisk Fund was launched at the end of 2018 with a diverse allocation across bonds, equities, credit and inflation. “We’ve seen rapid market adoption of the American Beacon AHL TargetRisk Fund, so we’re delighted to once again partner with Man AHL to bring this new ‘sister’ fund to our clients,” said Gene Needles, chairman and CEO of the $55 billion American Beacon and its parent company Resolute Investment Managers. “The fund is driven by some of the most sophisticated systematic trading systems available, and it employs deep investment and academic research with the aim of mitigating risk and adjusting its exposures to maintain a steady level of volatility in different market.”

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