Managed Futures Fund

[Musicwhiz]

Just spoke to my financial planner. She recommended me a fund which consists of Managed Futures, and said the 10-year compounded return is 11.7% per annum (after expenses). This fund used to be open to Accredited Investors only, but it was only recently that it was open to retail investors (new tranche being sold). She mentioned that the Fund is listed on FTSE and has a weekly quote, hence is liquid and is also transparent. I have not got the Term Sheet yet, but will post it here for comments once I get it.

A few questions immediately come to mind:-

1. If this Fund is so popular, why open up to retail investors? Might as well continue getting funds from Accredited Investors.

2. The Fund uses computerized algorithms to trade futures in 150 countries, and covers all sorts of futures. If the returns are so good, why bother collecting Management fees and Performance Fees? Might as well trade on your own and earn the super returns.

3. It is supposed to perform in both Up and Down markets, and is NOT correlated to the performance of the stock market. How does it then achieve the 11.7% compounded return (after expenses, no doubt, which means the actual gross return is much higher).

4. Why is my financial planner “selling” this Fund to me? How does she stand to gain from it?

Comments are most welcome. Thanks!

[mrEngineer]

Sound like another Madoff in e making.

If really so good, do introduce to me so I can sleep better and stop dreaming about annual reports. Haha

[mikh]

But of course your financial planner herself (and colleagues) has not invested a substantial amount in it because of some very good reasons.

[corydorus]

11.7% after fee/expenses seem hard to ahieve. I will not bother even if there are people who already profit from it as it can be the many lasts who suffers.

[newborn1000]

A lot of legitimate reasons for funds to raise capital........

You must ask who is the parent of the fund, if it's a bank, then mostly likely the bank cannot risk their equity due to regulations.......that why, need management fees

If hedge fund, then more difficult to say.........

[Musicwhiz]

Thanks for the replies guys.

Will attach the Term Sheet once I get it. My financial planner has promised to send it to me.

Some other info I got from her verbally - minimum investment amount is $20,000 SG dollars, and the volatility is supposed to mirror the stock market; yet somehow the returns are consistently 11.7%!

[wj888]

Is it MAN Financial? SuperFund?

Anyway, don't be lured by the "open to rich only" hedge funds, the real ones(those that outperformed significantly) are usually closed (no more fund acceptance), if not, it's only open to institutions/family offices and above, if not, it's a minimum of usd$1mil and above.

Lazy to type out again but these are my views on all the accreditated investors only funds..(Been there, done that)
http://thewealthjourney.blogspot.com/201...funds.html
http://thewealthjourney.blogspot.com/201...worse.html

[Musicwhiz]

OK the fund is called Man AHL Trend SGD Fund, and my planner did send me the Term Sheet and Summary.

However, she did mention not to circulate, so am not attaching it on a public forum. Those who are interested can approach your own financial planners.

Thanks!

[wj888]

http://www.maninvestments.com.au/about/o...nagers/ahl

Go to the australian website for man financials. You will find all the man financials futures product there.

Australians are known to be more "honest". .keke.. their watchdog are more strict on product misrepresentation.

[Image: 201009_AHLDiversifiedVSWorld_x485.gif]

Ok, take a look.. as i have emphasized, entry point is more important for funds.

The chart looks fantastic, it's an uptrend higher than the previous high and outperformed all known indices. But take a look at year 2008. If you had entered during that period, you will still not be breaking even now. Or it could have broken even, I did not delve deeper. But think of your own portfolio, have it broken even ? If so, are you performing on par with the funds as well? Then where's the alpha?

BTW, I don't understand. You are already donig quite well with your portfolio, why do you want to outsource some of the funds out to other people?

[yeokiwi]

Fundsupermart also selling mah...
http://www.fundsupermart.com/main/fundin...er=MANS001

ask your agent don't need to be so secretive..haha
Secretive does not improve the fund performance.