Man Group launches commodities fund

Man Group has launched its first single-manager commodities-only fund, offering exposure to global commodities.

The Man Commodites fund will follow an investment strategy developed by internal investment manager Man Systematic Strategies.

The strategy will be led by Scott Kerson, the investment manager’s new head of commodities.

Sandy Rattray, chief investment officer of Man Systematic Strategies, says: “More investors want to add commodities to their portfolios, but there are relatively few options for them in a Ucits format.

“Passive investment products like exchange-traded funds and index-linked swaps are generally poor at dealing with severe drawdowns and heightened volatility in commodity bear markets, so we think that an actively-managed, systematic approach is a better solution.”

The fund has been launched with $50m  (£31.8m) in seed assets and will aim to outperform passive indices and minimise downside risk.

It will aim to obtain liquid, long-only exposure to the Man Systematic Commodity index, which is based on trading in 25 liquid futures contracts in precious metals, industrial metals, energy and agricultural products.
Minimum investment in the fund is £1,000. The fund carries a 1.5% management fee and a 10% performance fee on outperformance of the benchmark index, DJ-UBS Commodity index total return.