Two High Conviction Income Strategies With Unique Active Management

We have identified some of our most successful teams where we felt their investment process would fit an active ETF wrapper very well, and then we very simply launched them into the market. So, if I start with the Man GLG High Yield ETF, this is an actively managed global high yield ETF, and again, it's 100% bottom-up focused. We spend all of our time trying to ascertain the fundamental value of companies and try to see where this is mispriced in the market.

Once we do that, we build a very concentrated portfolio. So we're going to buy a very small subset of the over 1500 issuers that you find within the global high yield space. The second thing is that we're unconstrained by benchmark. We think that fixed income indices are a very strange beast. They are constructed by market capitalization weights, the same that equity indices are.

There's some rationale to wanting to own more of the MAG7, but you don't necessarily want to own more of a company just because it has more debt outstanding. So again, we don't use the benchmark as a way to construct a portfolio, and we really just go where the best value is. And then the final point is that we tend to focus on the underserved and under-researched parts of the market.

This could be global. This could be opportunities outside the US, and it could also be opportunities in small and medium-sized companies, which are the largest subset from an issuer basis within the index, but it tends to be a smaller percent on a percent market value within the index. So again, looking for where the mispricing is greatest within the marketplace.

Then on the Man GLG Income fund, this is our flexible income strategy. We're aiming to deliver value primarily through credit strategy selection. We're not a macro fund. We're not making big calls on duration. We're not making calls on FX.

Again, we're trying to allocate across investment grade, high yield, emerging market debt, as well as securitized credit to build a portfolio that's delivering attractive income. We're a very value-driven investor, 100% bottom-up focused. And I think that's a very good complement to some of the existing strategies available in the marketplace, which tend to be much more top down. Our focus is really on trying to find the pockets where alpha is available.