Numeric Active US High Yield Bond
Man Numeric’s Active US High Yield Bond strategy seeks to outperform the US high yield corporate bond asset class as measured by the ICE BofAML US High Yield Index (H0A0).
It does so via a fundamentally-driven, quantitative, bottom-up bond selection process that is applied across the ICE BofAML US High Yield Index universe of approximately 1,800 publicly traded US high yield bonds.
Approach
Long-only investing in US high yield corporate bonds
- Fully quantitative issue and issuer modelling
- Systematic portfolio construction and risk management seeks to control key benchmark exposures
- Rigorous transaction cost analysis to help ensure efficient implementation
- Broad data access, including multiple credit data sources and full suite of equity data
Emerging asset class for quant
- Systematic implementation in credit potentially eliminates behavioural biases, providing a complement to discretionary approaches
- Leveraging Man Group's decades of experience with discretionary credit strategies and centralized credit execution desk
Fully systematic approach to traditional credit
- Alpha modelling deploys bond-level insights that seek to systematically exploit idiosyncratic dislocations
- Portfolio construction combines fundamentally driven alpha signals with risk and transaction cost modelling in a framework Man Numeric has successfully deployed in equities for decades
Performance
Strategy
BofA Merrill Lynch US High yield Index
Relative Return
4.06%
2.62%
1.44%
12.65%
10.45%
2.20%
2.31%
1.65%
0.66%
3.58%
3.73%
-0.15%
3.97%
4.12%
-0.14%
Performance by calendar years
Strategy
13.60%
-10.95%
5.78%
4.13%
13.57%
As at June 30, 2024
Inception date October 1, 2018
Past performance is not indicative of future results. Returns may increase or decrease as a result of currency fluctuations.
Please note that the performance data is not intended to represent actual past or simulated past performance of an investment product. The data is calculated in USD and is based on a composite that follow the strategy. An example fee load of 0.50% has been applied. * Annualized
Related content
Investment Solutions
Man offers a comprehensive suite of investment solutions and formats that can be tailored and optimised to meet specific client needs.
Our investment solutions offer optionality including: liquidity, control, investment restrictions, investor customisations and transparency.
UCITS
Alternative investment funds
US 40 ACT
Regional funds
Separate accounts
Advisory mandates
Managed accounts
Access to investment products and mandate solutions are subject applicable laws and regulations including selling restrictions and licensing requirements. Investment solutions listed above may not be compatible for all investment strategies and may be subject to minimum subscription requirements. Regional Funds: In additions to UCITS and AIFs registered across the EEA, a number of investment strategies are available in vehicles registered in Chile, Netherlands, Hong Kong, Japan, Singapore, South Korea and Switzerland.
Considerations
Investment Objective Risk - There is no guarantee that the Strategy will achieve its investment objective.
Market Risk - The Strategy is subject to normal market fluctuations and the risks associated with investing in international securities markets and therefore the value of your investment and the income from it may rise as well as fall and you may not get back the amount originally invested.
Counterparty Risk - The Strategy will be exposed to credit risk on counterparties with which it trades in relation to on-exchange traded instruments such as futures and options and where applicable, ‘over-the- counter’("OTC","non-exchange") transactions. OTC instruments may also be less liquid and are not afforded the same protections that may apply to participants trading instruments on an organised exchange.
Currency Risk - The value of investments designated in another currency may rise and fall due to exchange rate fluctuations. Adverse movements in currency exchange rates may result in a decrease in return and a loss of capital. It may not be possible or practicable to successfully hedge against the currency risk exposure in all circumstances.
Liquidity Risk - The Strategy may make investments or hold trading positions in markets that are volatile and which may become illiquid. Timely and cost efficient sale of trading positions can be impaired by decreased trading volume and/or increased price volatility..
Financial Derivatives - The Strategy may invest in financial derivative instruments ("FDI") (instruments whose prices are dependent on one or more underlying asset) typically for hedging purposes. The use of FDI involves additional risks such as high sensitivity to price movements of the asset on which it is based. The use of FDI may multiply the gains or losses.
Non-Investment Grade Securities - The Strategy may invest a significant proportion of its assets in non-investment grade securities (such as “high yield” securities) are considered higher risk investments that may cause income and principal losses for the Strategy. They are instruments which credit agencies have given a rating which indicates a higher risk of default. The market values for high yield bonds and other instruments tend to be volatile and they are less liquid than investment grade securities.
Model and Data Risk - The Investment Manager relies on quantitative trading models and data supplied by third parties. If models or data prove to be incorrect or incomplete, the Strategy may be exposed to potential losses. Models can be affected by unforeseen market disruptions and/or government or regulatory intervention, leading to potential losses.
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