Man AHL Alpha (AUD) A world leader in managed futures Daily applications and withdrawals Financial advisor use only. Man 2013
Who is Man? Man Group plc established 1783 Listed on the London Stock Exchange (FTSE 250) A world-leading investment management business with US$54.8 billion under management SWITZERLAND ROTTERDAM HONG KONG GUERNSEY LONDON DUBAI MILAN MIAMI TOKYO SYDNEY OXFORD CHICAGO TORONTO NEW YORK SINGAPORE MONTEVIDEO LUXEMBOURG Man 2013 2 07001Q Man Group funds under management as at 31 March 2013.
AHL Alpha Program vs Australian and global stock market indices October 1995 to April 2013 AHL Alpha Program S&P/ASX 300 (Accum.) Index MSCI World (Total Return) Index Total return 748.0% 406.1% 208.0% Annualised return 12.9% p.a. 9.7% p.a. 6.6% p.a. Annualised volatility ~ 13.0% 12.9% 15.9% Worst drawdown # -13.6% -47.6% -53.7% Date of worst drawdown Jan 09 to Feb 10 Nov 07 to Feb 09 Nov 07 to Feb 09 Correlation 1.00-0.10-0.10 Man 2013 3 03002M Source Man Investments. Note The chart is expressed in log scale to uniformly illustrate percentage changes each month. The AHL Alpha Program is represented by the actual trading results of AHL Alpha plc from October 1995 to September 2012 and AHL Strategies PCC Limited from September 2012 to April 2013. It is not designed to predict or forecast the future performance of the AHL Alpha Program. The final weekly valuation for a month is used to calculate the monthly return of the AHL Alpha Program. Performance figures are calculated net of all fees as at 30 April 2013. Past performance is not a reliable indicator of future performance. ~ Volatility measures the degree of fluctuation around the average performance of AHL Alpha plc since inception and the Australian and global stock market indices over the same period. The higher the volatility, the higher the degree of fluctuation in returns. # The table shows maximum drawdown which is the single largest percentage drop in price from any month end peak to the lowest price reached at the end of a subsequent month, while the investment is in a drawdown (that is, below a previously attained month end high).
Diversification benefits Five largest drawdowns in the Australian and global stock markets Five largest drawdowns in the Australian stock market^ Five largest drawdowns in the global stock market^ Man 2013 4 03005Q Source Man Investments Australia. ^ The Australian stock market corrections and global stock market corrections are measured by the five largest drawdowns in the S&P/ASX 300 (Accum.) Index and MSCI World (Total Return) Index, respectively, between October 1995 and April 2013. Performance figures are for AHL Alpha plc and are measured as the rise or fall in price during the periods of drawdown set out in the charts above. The periods selected are exceptional and these results do not reflect typical performance. As a consequence they give no indication of likely performance. Performance figures are calculated net of all fees as at 30 April 2013. Past performance is not a reliable indicator of future performance.
Track record A history of performance AHL Alpha Program versus Australian equities 1-year (%) 3-years (% p.a.) 5-years (% p.a.) Since Inception (% p.a. Oct 95 to Apr 13) AHL Alpha Program 6.8% 3.5% 2.6% 12.9% Australian equities 22.7% 7.0% 2.9% 9.7% Out-performance -15.9% -3.5% -0.3% 3.2% AHL Alpha Program versus global equities 1-year (%) 3-years (% p.a.) 5-years (% p.a.) Since Inception (% p.a. Oct 95 to Apr 13) AHL Alpha Program 6.8% 3.5% 2.6% 12.9% Global equities 17.4% 10.2% 2.4% 6.6% Out-performance -10.6% -6.7% 0.2% 6.3% Man 2013 5 03004M Source Man Investments Australia. Note Past performance is not a reliable indicator of future performance. The performance figures for the AHL Alpha Program is represented by the actual trading results of AHL Alpha plc from October 1995 to September 2012 and AHL Strategies PCC Limited from September 2012 to April 2013. It is not designed to predict or forecast the future performance of the AHL Alpha Program. Australian equities is represented by the S&P/ASX 300 (Accum.) Index and global equities is represented by the MSCI World (Total Return) Index. Performance figures are calculated net of all fees as at 30 April 2013. Past performance is not a reliable indicator of future performance.
AHL Alpha Program AHL is an investment division of Man Investments based in London, Oxford and Hong Kong Aims to capitalise from price movements, strong market trends and market inefficiencies Manages US$14.4 billion Compound annual return of 12.9% p.a. net of all fees since October 1995^ Man 2013 6 03001M AHL funds under management as at 31 December 2012. ^ Past performance is not a reliable indicator of future performance. The performance figure for the AHL Alpha Program is calculated net of all fees as at 30 April 2013 and is represented by the actual trading results of AHL Alpha plc from October 1995 to September 2012 and AHL Strategies PCC Limited from September 2012 to April 2013. It is not designed to predict or forecast the future performance of the AHL Alpha Program.
Systematic trading process Robust statistical research is at the core of AHL s investment philosophy 100% systematic, with no discretion Multiple systems using both technical and fundamental data Best opportunities for profitable systematic trading found in momentum systems Systematic trading process 1 Trading systems Technical data 1 2 Traded automatically 80% 3. Signal Risk filters Target position Fundamental data Desk (traders) 20% Man 2013 7 08002 Source Man Investments. 1 Schematic illustration.
AHL s investment process Profit/loss from trading WTI Crude Oil an illustration Price Volatility Position 1 2 3 AHL aims to exploit upward and downward trends over a range of timescales Small losses during rangebound markets Positions are adjusted to control risk - when volatility increases, positions are scaled back Profit/Loss Man 2013 8 08004 Source Man Investments. Note The illustration is based on simulated rather than actual positions and returns. It does not represent the actual performance achieved in this market.
AHL Alpha Program Diversification across sectors and markets Long term sector allocations Trading takes place around-the-clock Credit 7.8% Metals 8.9% Interest rates 6.7% Bonds 21.2% Agriculturals 9.1% Energies 13.2% Stocks 17.2% Currencies 15.9% Over 300 markets Over 30 exchanges Man 2013 9 03010Q Source Man Investments. Note The sector allocations above are designed to reflect the long-term risk exposure to each sector relative to the other sectors in the AHL Alpha Program. The portfolio structure and constituents are regularly reviewed by the investment management team and sector allocations will change accordingly.
Returns derived from different sectors at different times January 2003 to April 2013 Man 2013 10 03006Q Source Man Investments. Note The figures are estimated and generated from the underlying AHL Alpha plc trading system from January 2003 to September 2012 and AHL Strategies PCC Limited from September 2012 to April 2013. They do not take into account the fees charged on any particular account. Differences may also occur due to interest, commission and FX movements. Therefore the sum total of these sector indications will not necessarily equate to the reported performance for the year in question. The sectors accessed by the AHL Alpha Program and the allocations to them are not static and are regularly reviewed and may change depending on market conditions and trading signals generated by the AHL Alpha Program and as a result of the Investment Manager s ongoing research. Past performance is not a reliable indicator of future performance. 2012 year to date performance as at 31 December 2012.
Diversification across sectors and markets Currently trades around 300 markets across ~40 exchanges, 24 hours a day Pioneer in accessing more difficult markets Emerging markets Credit derivatives Number of markets 350 300 250 200 150 100 50 0 1990 2000 Current Markets list sample Agriculturals Credit Interest rates Coffee European 5 Year Itraxx Index Australian T-Bill Cocoa US 5 Year CDX Index Euribor Corn Currencies Eurodollar Feeder Cattle Australian Dollar Euroswiss Orange Juice Canadian Dollar Euroyen Soyabeans Euro Short Sterling Sugar Hungarian Forint Metals Wheat Japanese Yen Aluminium Bonds New Zealand Dollar Copper Australian Bond Norwegian Krone Gold Canadian Bond Polish Zloty Lead Euro-BOBL Singapore Dollar Platinum Euro-Bund South African Rand Silver Euro Schatz Swedish Krona Tin Japanese Bond Swiss Franc Zinc UK Gilts UK Sterling Stock indices US 2 year Treasury Note US Dollar CAC 40 Index US 5 year Treasury Note Energies DAX Index US 10 year Treasury Note Brent Crude FTSE 100 Index US Treasury Bond Gasoline Hang Seng Index Heating Oil Korean Kospi Index Natural Gas Nasdaq 100 Index RBOB Gasoline Nikkei 225 Index WTI Crude Oil S&P 500 Index Man 2013 11 08003 Financial advisor use only. Source Man Investments. Note The range of markets traded may be refined or changed at AHL s sole discretion based upon the results of continuing research.
Diversification benefits Low correlation to traditional asset classes AHL Alpha Program - correlation of monthly returns: October 1995 to April 2013 1 Australian cash Australian bonds Listed property Global equities Australian equities AHL Alpha Program AHL Alpha Program 0.14 0.25-0.05-0.10-0.10 1.00 Australian equities -0.18-0.14 0.61 0.79 1.00 Global equities -0.20-0.22 0.49 1.00 Listed property -0.19 0.15 1.00 Australian bonds 0.26 1.00 Australian cash 1.00 Man 2013 12 03007Q Financial advisor use only. Source Man Investments Australia. Note Australian equities: S&P/ASX 300 (Accum.) Index. Global equities: MSCI World (Total Return) Index. Listed property: S&P/ASX 300 Property (Accum.) Index. Australian bonds: UBSA Composite Bond Index. Australian cash: UBSA Bank Bill Index. 1 The AHL Alpha Program is valued weekly; however, for comparative purposes, statistics have been calculated using the last weekly valuation for each month. The performance of the AHL Alpha Program is calculated net of all fees as at 30 April 2013 and is represented by the actual trading results of AHL Alpha plc from October 1995 to September 2012 and AHL Strategies PCC Limited from September 2012 to April 2013. Past performance is not a reliable indicator of future performance.
Example: Traditional portfolio vs enhanced portfolio October 1995 to April 2013 Man 2013 13 03009Q Source Man Investments Australia (based on portfolios published by three leading research providers). Note The chart is provided as an illustration only of two hypothetical portfolios and is not designed to predict the future performance of the AHL Alpha Program. Performance figures for the indices are calculated exclusive of all fees and, for the AHL Alpha Program, are calculated net of all fees as at 30 April 2013. The actual trading results of the AHL Alpha Program is represented by AHL Alpha plc from October 1995 to September 2012 and AHL Strategies PCC Limited from September 2012 to April 2013. Past performance is not a reliable indicator of future performance. ~ Volatility measures the degree of fluctuation around the average performance of the AHL Alpha Program and the indices comprising the traditional portfolio shown above from October 1995 to April 2013. The higher the volatility, the higher the degree of fluctuation in returns. # The chart also shows maximum drawdown which is the single largest percentage drop in price from any month end peak to the lowest price reached at the end of a subsequent month, while the investment is in a drawdown (that is, below a previously attained month end high).
Benefits of AHL 20 year track record of delivering strong returns Access to a wide range of sectors and markets Profitable in up and down markets Potential to enhance returns during extreme events Potential to reduce portfolio volatility and increase return Managed futures provide an efficient use of capital Man 2013 14 08007 Financial advisor use only. Source Man Investments. Past performance is not a reliable indicator of future performance.
Key facts Wrap provider Investment Super/Pension Fund Australian registered managed investment scheme (open-ended) Valuation frequency Daily Issue and withdrawal frequency Daily Minimum initial investment $5,000 ~ Research rating Highly Recommended # Zenith Recommended ## Lonsec Research AMP Flexible Super AMP Personalised Portfolio Service AMP Wealthview Asgard Mastertrust & ewrap AXA North BT Wrap CFS FirstWrap FSP Portfolio Services Hillross Definitive Wrap Solutions Hillross Portfolio Care Macquarie Wrap MLC Navigator MLC Wrap Netwealth Man 2013 ~ Minimum transaction and balance requirements may vary if investing via a platform. # Current rating as at April 2013. The Zenith Investment Partners ("Zenith") ABN 60 322 047 314 rating referred to in this document is limited to "General Advice" (as defined by section 766B of Corporations Act 2001) and based solely on the assessment of the investment merits of the financial product on this basis. It is not a specific recommendation to purchase, sell or hold the relevant product(s), and Zenith advises that individual investors should seek their own independent financial advice before investing in this product. The rating is subject to change without notice and Zenith has no obligation to update this document following publication. Zenith usually receives a fee for rating the fund manager and product against accepted criteria considered comprehensive and objective. This report is prepared exclusively for clients of Zenith Investment Partners (Zenith). The report contains recommendations and advice of a general nature and does not have regard to the particular circumstances or needs of any specific person who may read it. Each client should assess either personally or with the assistance of a licensed financial adviser whether the Zenith recommendation or advice is appropriate to their situation before making an investment decision. The information contained in the report is believed to be reliable, but its completeness and accuracy is not guaranteed. Opinions expressed may change without notice. Zenith accepts no liability, whether direct or indirect arising from the use of information contained in this report. No part of this document is to be construed as a solicitation to buy or sell any investment. The performance of the investment in this report is not a representation as to future performance or likely return. The material contained in this report is subject to copyright and maynot be reproduced without the consent of the copyright owner. A copy of Zenith's Financial Services Guide can be viewed at www.zenithpartners.com.au. ## The Lonsec rating (assigned July 2012) presented in this document is published by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421445. The rating is a "class service" (as defined in the Financial Advisers Act 2008 (NZ)) or is limited to "General Advice" and based solely on consideration of the investment merits of the financial product(s). In New Zealand it must only be provided to "wholesale clients" (as defined in the Financial Advisers Act 2008 (NZ)). It is not a recommendation to purchase, sell or hold the relevant product(s), and you should seek independent financial advice before investing in this product(s). The rating is subject to change without notice and Lonsec assumes no obligation to update the relevant document(s) following publication. Lonsec receives a fee from the Fund Manager for researching the product(s) using comprehensive and objective criteria. For further information regarding Lonsec's ratings methodology, please refer to: https://www.lonsec.com.au/aspx/public/documents/ratings%20definitions.pdf 15 05004Q
The best performing asset class varies from year to year As at 30 April 2013 Man 2013 16 05005Y Financial advisor use only. Source Man Investments Australia. Note Past performance is not a reliable indicator of future performance. Man Investments Australia does not accept any liability, whether direct or indirect, to any person arising from reliance on or the use of the information contained in this document or the omission of any material from this document. The information has been prepared without taking into account anyone s objectives, financial situation or needs so before acting on it consider its appropriateness to your circumstances. Investment in Man AHL Alpha (AUD) (the Fund ) is offered by Man Investments Australia Limited ( MIA ) ABN 47 002 747 480 AFSL 240581. MIA is the Responsible Entity and issuer of Units in the Fund and publisher of this document. Offers of Units will be made in the PDS issued by MIA dated 8 May 2013. Investors wishing to acquire Units will need to complete the Application Form attached to the PDS. The information contained and used in this document is general information only and it has been prepared without taking into account anyone s objectives, financial situation or needs so before acting on it, consider its appropriateness to your circumstances. Persons considering investing in the Units should carefully read all of the PDS and speak to their financial advisor before making an investment decision. Please also refer to the Identification Requirements document. US Persons are not eligible to subscribe for Units pursuant to the PDS. Terms capitalised and used in this document have the same meaning as in the PDS.
Disclosures The information in this presentation is published by Man Investments Australia Limited ABN 47 002 747 480 AFSL 240581 ( MIA ) for the internal use of financial advisors only and must not be made available, published or distributed to any retail clients or any other person without the prior written consent of MIA. MIA disclaims liability for any act and/or omission on the part of any person or entity in reliance or purported reliance (whether in whole or part) on the content or any part of the content of this presentation. Further, MIA is not liable for any errors or omissions in the content of this presentation or for any consequences resulting from any errors or omissions in the content of this presentation. Investment in Man AHL Alpha (AUD) (the 'Fund') is offered by MIA. MIA is the Responsible Entity and issuer of Units in the Fund and publisher of this presentation. Offers of Units will be made in the Product Disclosure Statement ('PDS') issued by MIA dated 8 May 2013. Investors wishing to acquire Units will need to complete the Application Form attached to the PDS. Investors should also refer to the Identification Requirements document accompanying the PDS. Terms capitalised and used in this presentation have the same meaning as in the PDS. This information has been prepared without taking into account anyone's objectives, financial situation or needs. To judge performance over a short period of time can be misleading as returns may decline as well as appreciate. Persons considering investing in the Units should carefully read all of the PDS before making an investment decision and seek independent advice before making an investment decision. US Persons are not eligible to subscribe for Units pursuant to the PDS. Additional copies of the PDS may be downloaded from www.maninvestments.com.au/manahlalpha or by calling Man Investments Australia Client Services on (61-2) 8259 9999, toll free Australia 1800 222 355 or toll free New Zealand 0800 878 220. Man 2013 17 05002Y