Man OM-IP funds performance
- Man Investments Australia Limited
The Man OM-IP funds recorded an average 2.45%* gain over September, as upbeat economic data continued to indicate that the global economy is beginning to recover from the worst downturn in a generation. Backed up by comments from the US Federal Reserve that the ‘recession is very likely over at this point’, the positive news proved to be the main catalyst for the gains.
Positions in currencies were a main driver of returns, with long trades in various major currencies against the US dollar contributing to profits. Notable gains included long positions in the Australian dollar against the US dollar, as speculation that the Reserve Bank of Australia would raise interest rates before Christmas. Long positions in the Euro against the GBP added further profits as the British pound fell, following concerns over the rapid expansion of the UK’s budget deficit and its relative weak economic outlook compared to that of the euro zone.
Interest rate trading further contributed to profits for the month. Long positions in the Euribor and Eurodollar led to gains as prices continued to rise on expectations that euro zone and US interest rates would be kept low for a prolonged period of time.
Stock markets continued to exhibit solid trending behaviour, with long positions in US and Asian indices benefitting from the continued rally in equities. Additional gains were made by long positions in the metals sector as a weakened US dollar helped rally gold and silver prices.
The energy sector dragged on performance as volatile crude oil prices continued, while bond trading suffered after investors moved towards riskier assets.
The fund of fund managers achieved a positive performance for the month, after taking advantage of the continued rally in stock markets.
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