Man Group raises $1.5 billion for Japan hedge fund

Man Group, Europe's largest listed hedge fund firm, signalled the start of a new alternatives investment boom when unveiling a $1.5 billion fund in Japan, its biggest product launch since the financial crisis. The computer-driven Nomura Global Trend fund was the first onshore Japanese fund to be launched by Man's AHL unit and will invest in a mixture of assets via three currency baskets, one of which includes the Chinese Yuan.
The launch of the open-ended fund, which began trading at the end of April, came a day before commodities group Glencore was expected to reveal an initial price range for its $12 billion proposed London listing, which has caught the eye of the world's largest investment houses. That float and Man's latest fund launch underline an increasing investor appetite for higher-risk, higher-return investment strategies as equities markets hold up well against rising political tension in North Africa and the Middle East.
Man Group shares were trading 3.3 percent up at 258 pence at 0845 GMT, outperforming a flat FTSE 100 index. The launch of the Nomura Global Trend fund was delayed by the March 11 earthquake and tsunami in Japan, but sales of the product - launched in conjunction with the eponymous bank - have topped analyst expectations by around three times, a source close to Man told Reuters.
Some 15 percent of Man's assets are based in Japan, and shares in the company were hit hard following the disaster and subsequent nuclear crisis but have rebounded by around 4 percent since April, as Japan's reconstruction programme gathers pace. "The outstanding success of this open-ended fund launch is due to its appealing and innovative structure, and the commitment and expertise of the teams at both Man and Nomura," Man Chief Executive Peter Clarke said in a statement.
Man now manages $69 billion of assets across a variety of funds invested in managed futures, equity, credit and convertibles, emerging markets and global macro strategies. Last quarter, the London-listed group showed it was winning back clients again after more than two years of heavy outflows, as investor confidence in the battered hedge fund sector finally started to turn around.
Man's management has faced criticism for the company's sluggish recovery from the financial crisis and the slower-than-expected impact of its acquisition of rival GLG Partners on total group inflows. But in recent months, a number of GLG's most popular funds including the Market Neutral and Alpha Select products have enjoyed a rapid influx of client cash, prompting Man to consider closing some strategies to new investors to protect performance. Data published by hedge fund administrator GlobeOp showed the volume of its clients giving advance notice to withdraw cash from hedge funds, as tracked by its Forward Redemption Indicator index, had fallen to 2.45 percent in April, nudging a three-year low.