Monthly summary report, January 2014 AHL – a world leader in managed futures accessing around 300 international markets. In the agriculturals, short positions in sugar and wheat benefited from continuing weakness in both commodity markets at much lower volatility. Sugar ended the month as the single strongest contributor to performance across all asset classes. How to invest Toll free (Australia) 1800 222 355 Toll free (New Zealand) 0800 878 220 ( (61-2) 8259 9999 8 2 www.maninvestments.com.au/manahlalpha email [email protected] Fax (61-2) 9252 4453 Toll free (Australia) 1800 787 220 Toll free (New Zealand) 0800 787 220 UBSA Bank Bill Index 1 month -0.9% -3.7% 0.2% 3 months 0.1% 0.2% 0.7% 12 months -3.0% 16.7% 2.8% 3 years (p.a.) 1.0% 9.9% 3.9% CARR since inception* 3.4% 12.1% 4.1% Total return since inception* 16.0% 65.3% 19.2% * Inception date 1 September 2009. Source: Man Investments Australia. Man AHL Alpha (AUD) As at 31 January 2014^ 6.0% 4.0% 2.0% 0.0% -2.0% Dec 13 Sep 13 Jun 13 Mar 13 Dec 12 Jun 12 Sep 12 Mar 12 Dec 11 Jun 11 -6.0% Sep 11 -4.0% Mar 11 The flight to quality saw renewed demand for developed market bonds. Bond positions grew through the month, leading fixed income markets to contribute positively to performance. Existing long positions in French and Italian bond futures, as well as Australian and Canadian contracts, added most returns to the sector. MSCI World (TR) Index Dec 10 Gains were made within currencies. Inflation in Argentina topped 25% over the past year and in January, the Peso fell more than 20% against the USD. The impact of the move was felt on other emerging market currencies AHL trades, such as Turkish Lira, South African Rand, Russian Ruble and the Philippine Peso. Positive returns from Rubles and Pesos set against some smaller losses from Lira and Rand. Man AHL Alpha (AUD) Jun 10 The drops in European and US equity markets, with accompanying jumps in credit premia, provided the main negative drivers of performance. Returns Sep 10 The year started without the investment risk-on jump seen in recent years. Concerns over weakness in emerging markets, particularly Argentina, gradually took hold of investors and eventually spilled over into global financial markets in a flight to quality move in the last week of the month. As at 31 January 2014^ Mar 10 Entering 2014, AHL was positioned to follow the trends that persisted at the end of 2013, with significant long positions in developed market equities and short positions in credit, as well as shorts in commodities such as gold, sugar and wheat. Following reversals in equity markets towards month end, and in spite of gains made in bonds and agriculturals, AHL ended the month negatively. Performance summary Dec 09 Man AHL Alpha (AUD) retraced -0.9% for the month. Sep 09 January performance summary Source: Man Investments Australia. Sector allocations As at 31 January 2014^ 6 7 8 1 Bonds 1 5 25.7% 3 Energies 11.6% 4 Agriculturals 4 3 31.9% 2 Stocks 9.7% 5 Currencies 9.1% 6 Metals 6.0% 7 Interest rates 4.6% 8 Credit 1.4% 2 Source: Man Investments. ^P ast performance is not a reliable indicator of future performance. Performance figures are calculated net of all fees as at 31 January 2014 and assuming all distributions are reinvested. Investment in Man AHL Alpha (AUD) (the ‘Fund’) is offered by Man Investments Australia Limited ABN 47 002 747 480 AFSL 240581 (‘MIA’). MIA is the Responsible Entity and issuer of Units in the Fund and publisher of this document. Offers of Units will be made in the PDS issued by MIA dated 8 May 2013 which is available on www.maninvestments.com.au/manahlalpha or by calling 1800 222 355 (Australia) or 0800 878 220 (New Zealand). Investors wishing to acquire Units will need to complete the Application Form attached to the PDS. The offer of Units in New Zealand is made pursuant to and in accordance with Part 5 of the Securities Act 1978 and the Securities (Mutual Recognition of Securities Offerings – Australia) Regulations 2008 (New Zealand). Investors receiving the PDS in New Zealand should read the ‘New Zealand Shareholders: Warning Statement’ in Section 11 of the PDS. The information contained and used in this document is general information only and it has been prepared without taking into account anyone’s objectives, financial situation or needs so before acting on it, consider its appropriateness to your circumstances. Persons considering investing in the Units should carefully read all of the PDS and speak to their financial advisor before making an investment decision. Please also refer to the Identification Requirements document. US Persons are not eligible to subscribe for Units pursuant to the PDS. Terms capitalised and used in this document have the same meaning as in the PDS. Man Investments Australia Limited Level 21 Grosvenor Place, 225 George Street, Sydney NSW 2000 Australia