The Man GLG Income fund has a value-driven approach. It invests no less than 80% in UK companies of all sizes, but can also invest in continental European companies that derive a substantial part of their revenues from the UK. It also has the ability to selectively invest in corporate bonds - a flexibility that sets it apart from the majority of its peers.
Previously Man GLG UK Income
Our opinion
This fund has performed exceptionally well since Henry took over in 2013. It has a unique and disciplined investment approach which is applied with skill and pragmatism. The flexible mandate allows the manager to find value in parts of the income market many other managers may ignore, such as smaller companies. We also like the fact that the manager can, and will, invest in a company's bond, rather than its equity, if he feels the risk/reward characteristics are more favourable.
Company description
GLG, a member of Man Group since 2010, is listed in the UK, USA, Switzerland and Hong Kong. With an on-the-ground presence in key markets, GLG delivers investment strategies across various asset classes, sectors and geographies. GLG funds were rebranded in August 2015 to Man GLG. The group was awarded the Elite Equities Provider Rating each year from 2016 to 2020.
Fund manager
Henry Dixon took over the running of this fund in November 2013. He has more than a decade's experience in equity investment management, having previously worked for New Star Asset Management and The Families Charities Ethical Trust, and more latterly as founder and portfolio manager of Matterley.
We will stick to our rules, play to our strengths and try to learn from every one of our mistakes.
Henry DixonFund manager
Investment process
Man GLG Income’'s investment process is very similar to that of the Elite Rated Man GLG Undervalued Assets fund - a process Henry also used successfully during his time at Matterley. It places a heavy emphasis on balance sheet analysis while screening for cash-generative stocks which are trading below the cost it would take to replicate their current business. The fund also screens for stocks with stronger balance sheets than the market, but twice the level of dividend growth. Once companies have been identified, extensive fundamental analysis is undertaken before an investment is made. Man GLG UK Income also has the ability to invest in a company's bonds if the fund manager believes they offer better value, as well as companies based in Europe. However, at least 80% of the portfolio will be invested in UK equities.
ESG
ESG - Limited
Man Group has a firm-wide exclusions list as a minimum set of standards to which Henry must adhere to with this fund. He also considers the potential negative or positive impact of ESG factors in the context of overall company analysis. Within this, governance risks are a particularly strong focus, as he wants to determine whether management is willing and capable of behaving in a way that would be beneficial for minority shareholders. To support this work, Henry has access to Man Group’s proprietary ESG Analytics tool which collates data from a mix of third-party providers. Going forward, Henry is looking to incorporate a way of scoring this data and adding it to the process. However, for the time being, the primary quantitative analysis in the process is focused on the financial position of the business and the investment opportunity.
Risk
This is a multi-cap fund and, historically, a large portion of the portfolio has been invested in smaller companies. This can make the fund riskier than those peers investing in larger companies. The bond investments also tend to be value-based choices, which means they can be higher up the corporate bond risk spectrum. Man GLG Income is reasonably well diversified with around 60 different holdings.
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