Man Group, the world’s largest publicly traded hedge fund firm, is planning to makes its debut in the exchange-traded fund (ETF) space with the launch of two actively managed fixed-income products, according to a report by ETF.com.
The reports cites a recent filing with the US Securities and Exchange Commission, as revealing that the London-based alternative asset manager is planning to launch the Man Active High Yield ETF and the Man Active Income ETF, both designed to bring sophisticated credit strategies – long the domain of institutional investors – into an ETF wrapper.
The High Yield ETF will allocate at least 80% of assets to below-investment-grade bonds, with the ability to invest up to 30% in deeply distressed debt rated B3/B- or lower. The Income ETF meanwhile, will target broad credit exposure, investing across high yield, investment-grade corporates, government and agency bonds, and securitised debt, with income generation as its primary goal.
Man’s entry into the ETF market reflects a wider trend among hedge fund managers seeking to scale strategies via liquid, accessible structures. The funds will be actively managed by GLG Partners, a Man Group subsidiary, with Michael Scott and Jonathan Golan heading portfolio management for the High Yield and Income ETFs, respectively.
The ETFs may utilise derivatives—including swaps, futures, options, and credit-linked notes—for both hedging and alpha generation. Notably, the strategies allow exposure to complex assets like bank loans, contingent convertibles, and securities with extended settlement periods.
Yen carry trade risks mount
Hedge funds and other leveraged investors face renewed risks from the yen carry trade as Japan moves further away from decades of…
More
Valour launches first crypto hedge fund using Neuronomics AI strategy
Valour, the digital asset investment products subsidiary of DeFi Technologies, has launched its first hedge fund as it expands beyond…
More
SocGen targets strong prime brokerage growth
Societe Generale is planning to significantly expand its prime brokerage business as part of Chief Executive Officer Slawomir Krupa's…
More