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.
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