Man AHL TargetRisk

The AHL TargetRisk strategy employs a dynamic multi asset program that allocates capital based on a risk budgeting approach. The fund seeks to capture positive expected returns in each asset class (equities, credit, bonds/rates, and inflation) while seeking to preserve capital in challenging market environments. The strategy employs a number of risk management overlays with the aim to modulate strategic allocations both in terms of overall risk take and the asset class mix. The risk management system is based on three distinct overlays: volatility, trend following and correlation overlay. The volatility overlay monitors market volatility and quickly adjusts exposures seeking a consistent level of risk. The trend following overlay is designed to detect downward trends seeking to reduce the exposure by up to 50% when prices are falling. Finally, the correlation overlay seeks to identify periods where bonds and equities become positively correlated and reduce exposures accordingly.