Quarterly Report for Quarter Ending September 30, 2025 (Form 10-Q)

Management's Discussion and Analysis of Financial Condition and Results of Operations.

Introduction

Reference is made to Item 1, "Financial Statements." The information contained therein is essential to, and should be read in conjunction with, the following analysis.

Operational Overview

Man-AHL Diversified I L.P. (the "Partnership") is a fund which engages in speculative trading of futures and forward contracts and related instruments through its investment in Man-AHL Diversified Trading Company L.P. (the "Trading Company") pursuant to the AHL Diversified Program, directed on behalf of the Trading Company by AHL Partners LLP (the "Trading Advisor"). The Trading Advisor also serves as the Partnership's commodity pool operator. The AHL Diversified Program is a price trend-following trading system, entirely quantitative in nature, and implements trading positions on the basis of statistical analyses of past price histories. The objective of the AHL Diversified Program is to deliver capital growth for commensurate levels of volatility over the medium term, independent of the movement of the stock and bond markets, through the speculative trading, directly and indirectly, of futures, options and forward contracts, swaps and other financial derivatives both on and off exchange. The AHL Diversified Program trades globally in several market sectors, including, without limitation, currencies, bonds, energies, stock indices, interest rates, credit, metals, agricultural and volatility. In the future, the AHL Diversified Program may, to a limited extent, invest in stocks.

The AHL Diversified Program is proprietary and confidential, so that substantially the only information that can be furnished regarding the Partnership's results of operations is contained in the performance record of its trading through the Trading Company. Past performance is not necessarily indicative of its future results. Man Investments (USA) Corp., the general partner of the Partnership (the "General Partner") does believe, however, that there are certain market conditions, for example, markets with pronounced price trends, in which the Partnership has a greater likelihood of being profitable than in other market environments.

Capital Resources and Liquidity

Units of limited partnership interests ("Units") of the Partnership may be offered for sale as of the beginning, and may be redeemed as of the end, of each month.

The Partnership raises additional capital only through the sale of Units and capital is increased through trading profits (if any) and interest income. The Partnership does not engage in borrowing. The Partnership, not being an operating company, does not incur capital expenditures. It functions solely as a passive trading vehicle, investing the substantial majority of its assets in the Trading Company. Its remaining capital resources are used only as assets available to make further investments in the Trading Company and to pay Partnership level expenses. Accordingly, the amount of capital raised for the Partnership should not have a significant impact on its operations.

Partnership assets not invested in the Trading Company are maintained in cash and cash equivalents in bank accounts or accounts with The Bank of New York Mellon and are readily available to the Partnership. The Partnership may redeem any part or all of its limited partnership interest in the Trading Company at any month-end at the net asset value per unit of the Trading Company. The Trading Company's assets are generally held as cash or cash equivalents which are used to margin futures and provide collateral for forward contracts and other over-the-counter ("OTC") contract positions and are withdrawn, as necessary, to pay redemptions (to the Partnership and other investors in the Trading Company). Other than potential market-imposed limitations on liquidity, due, for example, to limited open interest in certain futures markets or to daily price fluctuation limits, which are inherent in the Trading Company's futures trading, the Trading Company's assets are highly liquid and are expected to remain so.

There have been no material changes with respect to the Partnership's critical accounting policies, off-balance sheet arrangements or disclosure of contractual obligations as reported in the Partnership's Form 10-K filed March 21, 2025.

Allocations by Market Sector

The following table indicates the percentage of the Partnership's assets allocated to initial margin for the Partnership's open trading positions by market sector as of September 30, 2025. The Partnership's capitalization was $ 59,759,232 as of September 30, 2025. See also Item 3, "Quantitative and Qualitative Disclosures About Market Risk," below.

*Certain total amounts do not foot due to rounding.

Results of Operations

Due to the nature of the Partnership's trading, the results of operations for the interim period presented should not be considered indicative of the results that may be expected for the entire year.

Periods Ended September 30, 2025:

Nine months ended September 30, 2025:

Net assets decreased $16,502,259 for the nine months ended September 30, 2025. This decrease was attributable to subscriptions in the amount of $ 62,121, redemptions in the amount of $ 12,442,397 and a net loss from operations of $ 4,121,983.

Management Fees of $ 1,415,966 and servicing fees of $ 473,257 were paid or accrued, and interest of $ 1,876,284 was earned or accrued on the Partnership's share of the Trading Company's cash and cash equivalent investments and broker balances, for the nine months ended September 30, 2025.

The Partnership's other expenses paid or accrued for the nine months ended September 30, 2025 were $ 849,992.

Three months ended September 30, 2025:

Net assets increased $ 644,051 for the three months ended September 30, 2025. This increase was attributable to subscriptions in the amount of $ 62,121, redemptions in the amount of $ 6,034,174 and a net gain from operations of $ 6,616,104.

Management Fees of $ 447,494 and servicing fees of $ 149,597 were paid or accrued, and interest of $ 552,538 was earned or accrued on the Partnership's share of the Trading Company's cash and cash equivalent investments and broker balances, for the three months ended September 30, 2025.

The Partnership's other expenses paid or accrued for the three months ended September 30, 2025 were $ 322,011.

In July, performance was negative for the month, with losses in FX and fixed income outweighing gains in stocks and commodities. A broad-based short dollar position generated losses. As the dollar strengthened against most developed and emerging market currencies, long positions in the Great British pound, the Singapore dollar, and the Euro led declines, compounded by losses in Latin American-dollar crosses. A short Japanese yen position, however, generated gains. In fixed income, Long Euribor and SONIA positions led declines in rates trading, while long Swedish swaps and Italian government bonds (BTPs) also detracted. Long exposure to stock indices generated gains. Positions in the FTSE and Asian indices led contributions, boosted by US indices amid major trade

announcements. Decreases in a long position in the Euro STOXX index coincided with investors uncertain on the value of the US-European trade deal. Commodities trading was beneficial, as gains in energies and agricultural outweighed metal losses. In energies, a short US natural gas position and long positions across the rallying oil complex were profitable. Long cattle positions gained as prices rose amid sustained demand and reduced supply. The primary detractor was a long copper position, during a period when copper was excluded from tariffs and the price premium on US futures decreased.

In August, performance was positive for the month, with gains from equities, fixed income, commodities and credit. In equities, gains were geographically diversified, led by long positions in the FTSE China A50 and Canada's S&P/TSX 60 indices. Positions in the S&P/ASX 200 and TOPIX indices also generated gains. Credit performance was muted, as marginal gains from long US credit risk were largely offset by European exposure. Fixed income trading was accretive, as mixed positioning across the curve proved beneficial. At the short end, SOFR led gains amid investors appearing to position for more immediate US rate cuts. At the longer end, German government bonds and US mortgage-backed securities (MBS) generated gains. Long SONIA and Australian inflation-linked government bonds detracted from performance. Commodities were bifurcated, with gains from metals and agricultural offsetting losses in energies. Long exposure across the precious metals complex gained, led by silver and gold. In agricultural, gains from long cattle contracts were offset by coffee, where the Partnership changed its positioning from short to long. In energies, gains from short US natural gas positions were offset by longs across the oil complex.

In September, performance was positive for the month, with gains from equities, commodities and currencies outweighing losses in fixed income. Equities drove performance as broad-based long positioning benefitted the Partnership. A long position in the MSCI Emerging Markets index led the way, closely followed by Asia-Pacific indices. Positions in the Korean KOSPI, FTSE Taiwan and Hang Seng indices generated gains. Commodity gains were driven by metals, primarily long precious metals exposure, amid US rate cut expectations, a potential government shutdown, and geopolitical tensions. In commodities, gold led the performance charts. Trading in agricultural also proved accretive, led by a short position in wheat. Gains were partially offset, however, by detractors in energies, namely a short European energy position. In currencies, the Partnership's short positioning against the dollar was beneficial, particularly in Latin American-dollar crosses. Amid policy uncertainty, long positions in the Brazilin real and Mexican peso led gains. Short exposure to the Indian rupee and Japanese yen against the dollar further added to gains. Fixed income was the only asset class to detract for the month. Losses were led by a long SOFR position. Elsewhere, losses were muted but broad-based as mixed positioning struggled. Long Australian bonds detracted alongside short positions in Gilts.

Three months ended June 30, 2025:

In April, the Partnership returned a negative return with losses in FX, credit, commodities, and stocks outweighing gains from fixed income. The Partnership's positions in Switzerland's SMI and the Hang Seng produced losses, while a short position in the Russell 2000 Index generated a small offsetting gain. Long credit positions also generated losses. The US dollar trade-weighted index fell. Emerging Market currencies fell relative to the US dollar. Losses were incurred in the South African rand, and Brazilian real. US dollar positions against the Swedish krona and Indian rupee generated small offsetting gains. Within commodities, the main driver of negative performance was in metals, but there was far from a uniform story. A long gold position was profitable. A long silver, position on the other hand, was unprofitable . Within energies, US natural gas generated a loss, and in agricultural, profits from trading wheat were offset by losses from soybeans. Fixed income trading finished the month in the black, with gains from long positions in short-term rates almost offset by losses from mixed positioning in longer duration trades in the US and Germany.

In May, the Partnership's performance was negative with losses in FX, commodities, and bonds outweighing gains from equities and credit. Long SONIA and Euribor suffered. Further out the curve, long Korean index positions added to losses. Commodities trading proved challenging as all sleeves ended in the red and Energies led losses. Long coffee drove agricultural to losses. Gains from longs in livestock were only able to partially offset. Metals compounded losses, with long precious the primary culprits. Currencies also were negative. The Partnership's net long positioning in Credit was profitable. In a similar vein to earlier in the year, longs across Europe led gains, notably in FTSE Italia and DAX.

In June the performance of the Partnership was positive with gains in stocks, FX, credit and commodities offsetting minor losses in fixed income. June saw risk assets advance with both the S&P 500 and Korean Kospi hitting all-time highs leading to gains in long Korean Kospi. The Partnership's broad-based short dollar exposure contributed to gains as well as a host of Latin American-dollar crosses, in particular the Brazilian Real and Mexican Peso against the US dollar. Long Euro further added, complemented by gains from other emerging market and developed market dollar crosses. Gains in stocks were led by long Kospi. The Partnership's long positions in MSCI EM and US indices extended gains which were further compounded by high yield credit exposure in both the US and Europe. Commodities were mixed, with gains from agricultural and metals trading offsetting losses from energies. Shorts in sugar and corn proved profitable, with sugar prices falling. Long platinum and silver pushed metals into the black but were countered by losses from long exposure across the oil complex. In fixed income, long-end exposures contributed to offsetting gains from rates trading. Long Euribor led declines, while shorts in US treasuries compounded losses. Profits from long SONIA provided some relief.

Three months ended March 31, 2025:

The Partnership ended January in the red net of fees, with gains from equities and commodities offset by losses in FX and fixed income. A long position in the FTSE Taiwan Index caused minor losses on the month overall, but there were significant gains from long positions in European indices such as Germany's DAX and FTSE Italia All Share. Within commodities, agricultural were profitable while returns from trading metals and energies were more muted. The Partnership's long positions in coffee and live cattle were profitable. Within metals, gains from long gold positions were offset by losses trading copper. Energies trading was also flat overall, with profits from long positions in EUA Carbon Emissions offset by losses from trading crude oil. In currency, the Partnership's long US dollar position stumbled mid-month amidst underlying tariff uncertainties, and crosses against the Brazilian real and Japanese yen were the worst affected. A long US dollar position against the Canadian dollar, however, benefited the Partnership over the course of the month. In credit trading, the Partnership's gains were made primarily in European investment-grade and high-yield indices. Trading in fixed income generated losses for the Partnership as mixed news on inflation caused fluctuations in prices. The Partnership's short positions in both SONIA and Euribor were worst affected, although most positions generated losses. However, a short position in Japanese bonds benefited the Partnership.

In February, the Partnership returned negative net of fees, with losses in commodities, FX and fixed income, overcoming small gains from equities and credit. Trading in risk assets finished the month in the black, but there was considerable dispersion. Technology stocks experienced another month of volatility, leading to losses from the Partnership's longs in both the S&P 500 and Nasdaq 100. Europe's equities proved far more resilient, where the Partnership's long position in the FTSE Italia All-Share Index performed positively. The Partnership experienced losses across all three commodity sub-sectors. The Partnership's long position in cocoa fell as Cocoa prices softened, reversing recent trends. The Partnership's long positions in US natural gas generated gains, but its metals trading generated losses, mainly resulting from longs in platinum and silver. The Partnership experienced losses in currency pairs such as the Swedish krona and Chilean peso, but the greatest loss was seen for the Japanese yen, which rose against the US dollar after a plethora of strong economic data. However, the Partnership generated a gain from a short position in the Taiwanese dollar. In credit trading, the Partnership had a loss from a long credit position in US high yield which was more than offset by a gain from similar positioning in European high yield. The Partnership experienced losses in fixed income trading from short positions in U.S. Treasuries across the maturity spectrum. However, a short position in Japanese bonds provided some marginal offsetting gains.

The Partnership finished the quarter with negative returns in March net of fees, with losses from equities, credit and FX trading outweighing gains in commodity trading and nearly-flat performance from fixed income. The Partnership's equity positions, many of which had transitioned from long to short by the end of the month, posted losses. Within indices, the worst performers were Sweden's OM and India's Nifty, while long positions in South Africa's All Share and the Hang Seng generated offsetting gains. In FX trading, the Partnership's short positions against the US dollar, such as the Indian rupee and Swiss franc, experienced losses, while offsetting gains were seen in the Partnership's positions in the Polish zloty and Brazilian real that were long or moved to long against the US dollar early in the month. In the aggregate, fixed income trading was flat, but there was dispersion in individual positions. Losses were seen in the Partnership's position on Euro short-term rates, while offsetting gains were seen in the Partnership's long position in German bonds. Commodities trading finished in positive territory for the Partnership, driven by metals where gold had its largest quarterly rise since 1986 and a long silver position was also a top performer for the Partnership. Comparatively, the Partnership experienced some losses as oil prices continued to fluctuate, though a long US natural gas was also a top performer for the Partnership. Long positions in live and feeder cattle, however, helped generate gains for the Partnership's agricultural trading, as prices hit new highs.

Periods Ended September 30, 2024:

Nine months ended September 30, 2024:

Net assets decreased $ 6,788,978 for the nine months ended September 30, 2024. This decrease was attributable to subscriptions in the amount of $ 415,000, redemptions in the amount of $ 10,034,525 and a net gain from operations of $ 2,830,547.

Management Fees of $ 1,969,812 and servicing fees of $ 658,683 were paid or accrued, and interest of $ 3,319,723 was earned or accrued on the Partnership's share of the Trading Company's cash and cash equivalent investments and broker balances, for the nine months ended September 30, 2024.

The Partnership's other expenses paid or accrued for the nine months ended September 30, 2024 were $ 1,067,165.

Three months ended September 30, 2024:

Net assets decreased $ 10,772,049 for the three months ended September 30, 2024. This decrease was attributable to subscriptions in the amount of $ 0, redemptions in the amount of $ 1,866,034 and a net loss from operations of $ 8,906,015.

Management Fees of $ 606,368 and servicing fees of $ 202,724 were paid or accrued, and interest of $ 1,077,401 was earned or accrued on the Partnership's share of the Trading Company's cash and cash equivalent investments and broker balances, for the three months ended September 30, 2024.

The Partnership's other expenses paid or accrued for the three months ended September 30, 2024 were $ 325,855.

In July, the Partnership returned negative net of fees, driven by losses in currencies and fixed income. A net long US dollar overall position was not profitable, while the Partnership's short yen position against the US dollar was also unprofitable, however, the Partnership's position in Sterling against a basket of currencies led to some offsetting gains. The Partnership's fixed income losses were concentrated at the short end of the curve as increased rate cut expectations hurt positions in Euribor and SOFR. Further out the maturity spectrum, European bond positions generated the biggest losses, flipping from short to long in the process. Within commodities, trading in agricultural generated gains, most notably from short soybeans position, while energies trading was broadly flat, with gains from short US natural gas being offset by losses from long oil positions. Within metals, longs in both silver and copper detracted. Long positions in risk assets scraped a positive return. In Japan, indices fell and long positions in Taiwanese indices suffered in sympathy with falls in the Magnificent 7. Gains from longs in Canadian and Australian indices offset these losses. Credit trading pipped equities for top performance on the month, led by long positions in high-yielding names in the US and Europe.

The Partnership ended August down on the month, driven by losses in stocks and currencies. Risk assets bore the brunt of August's early reversal, with tempered exposures unable to fully recover losses amid the subsequent market rally. Long Asian indices were particularly affected, with Japanese stocks seeing their largest daily loss since 1987. Elsewhere, long US small caps and European indices compounded declines. As credit spreads widened, the Partnership's long high yield exposure lead to declines. Forex trading dragged on performance amid a softening US dollar, particularly against Asian currencies, where short exposure to the Korean won and Chinese renminbi drove declines. The US dollar weakening hurt the Partnership's net long US dollar positioning, however long Sterling helped offset as the pound hit a two-year high against the US dollar. Fixed income losses were concentrated at the short end of the curve with the Partnership only just switching to net long amid the early August rout, which suffered later in the month. Performance was mixed further out the maturity spectrum, with long Japanese bonds generating notable declines. In commodities, losses stemmed from metals and energies trading, notably short aluminum. Similarly, oil uprooted market price expectations with long positions falling on curbed Chinese demand and rising inventory levels. Agricultural trading partially offset losses as coffee surged.

In September, the Partnership returned positive net of fees, with positive attributions from fixed income, FX, equity, and metals trading, offset by losses from agricultural and energies. The Partnership's transition to long fixed income over the quarter was rewarded as yields declined across most regions and tenors. Top performers were Italian bonds. A loss was incurred in Gilts, while a decreasing US dollar lead to gains in currency pairs such as the South African rand and British pound. Losses were incurred from a long position in the Chilean peso against the US dollar, however, as the Chilean central bank cut rates but gave dovish forward guidance. Top performers within equities were longs in the MSCI EM index and Hang Seng, while a loss was made from a short in the FTSE China A50 index. Long credit positions were all beneficial, most notably in high yielding CDS indices on both sides of the Atlantic. Trading in commodities was mixed. A declining US dollar and falling rates were positive for longs in precious metals. A short US natural gas position was hurt as prices rose. Within agricultural, returns were quite disparate; a long in coffee was beneficial, while losses were seen in the soy complex.

Three months ended June 30, 2024:

In April, the Partnership generated a positive return, with gains from fixed income, FX and commodities offsetting losses from equities. The Partnership's short fixed income positions were largely profitable, though losses were experienced trading Japanese bond futures. The Partnership's net long US dollar positions performed well against a variety of currencies, specifically, the Japanese Yen, while a short position in the US dollar against the Mexican Peso generated a loss. Within commodities, metals did the best, with long positions in copper and gold generating positive returns. Returns from trading agricultural were more muted, with losses from a short wheat position offset by gains from long coffee. Energies trading generated losses from short US natural gas, long gas oil and short carbon emissions. The Partnership's long equity positions generally experienced losses this month, though there were certain exceptions, including a long position in the FTSE100 index. Long credit positions also generated losses, with the US and EU higher-yielding names faring worst.

In May, the Partnership generated a negative return net of fees, with losses in FX, commodities and bonds outweighing gains from equities and credit. In FX trading, the Partnership's broad net long US dollar positioning, most notably against the Swiss franc and Norwegian krone incurred losses. Japan's yen rose, generating losses, but were mostly recovered as it fell back again as the month progressed. Commodities trading also generated losses, though there was variation across sub-sectors. Energies did the worst, with the Partnership's short in US natural gas being one of the worst performers. Within agricultural, short positions across the soy complex

generated losses. Metals trading, however, provided gains through long silver and copper positions. The increase in bonds in the beginning of the month hurt the Partnership's short positions in treasuries across the maturity spectrum, though despite an early loss in the Partnership's short position in Japanese bonds, the position ended the month as the sector's top performer. In equities, the Partnership's net long equity positions, specifically in Taiwanese equities, were profitable for the month. Broadly positive market sentiment boosted long credit positions, most notably in the US.

In June, Partnership posted negative returns net of fees with losses dominated by fixed income and energies, while marginal gains came from equities and agricultural. The decline in yields affected the Partnership's short positioning in rates markets, with losses experienced notably in Euribor and SOFR contracts. In contrast, the Partnership experienced small gains in OAT yields. Within commodities, trading in metals struggled with losses seen in copper. Energy trading dipped into the red, driven by losses from a short heating oil position. Agricultural trading, on the other hand, generated gains via short positions in corn and in the soy complex. Trading in currencies finished flat, but there was considerable intra-sector variability. The Japanese yen continued to fall against multiple currencies, which suited positioning, though gains were offset from losses in the Partnership's long position in the Mexican peso against the US dollar. Equities trading was beneficial in June as the Partnership's two index positions in Taiwan topped the performance table for both the month and the year, while a loss was experienced from a long in the CAC 40 index. Credit trading was bifurcated; the Partnership experienced losses from its European index positioning while trading in the US indices finished the month around flat.

Three months ended March 31, 2024:

The Partnership ended January in the red net of fees, with gains from equity trading offset by losses in credit, commodities, FX and fixed income. Long positions in the Nikkei and Tokyo Stock Exchange Index were top performers for the Partnership, though a long position in the Korean Kospi generated offsetting losses. In currency trading, shorts in both the Japanese Yen and South Korean Won against the US dollar were also profitable, though losses were seen in other positions, notably a long in the New Zealand dollar against the US dollar. Commodity trading, while largely flat, had some of the Partnership's worst performing positions, including shorts in natural gas, gold and copper. In fixed income, the Partnership's net long exposure accounted for most of the Partnership's losses for the month.

In February, the Partnership returned positive net of fees, with gains across asset classes led by equities and commodities. The Partnership's long positions in equities did well with boosts from the S&P500 and Taiwanese indices. Losses were incurred from shorts in the Hang Seng and Chinese equities. Long credit positions were similarly accretive, driven by European and US high-yielding names. Within commodities, trading in agricultural performed best driven by a short position in corn, whose price fell steadily after a supply and storage surplus, and a long position in cocoa whose price rose significantly. In energies, gains accrued from a short in natural gas, while metals trading detracted, led by copper. In currency, the US dollar's increasing value generated gains for the Partnership's long USD crosses, with the top performer coming against the Japanese yen. Losses were incurred in the British pound and the New Zealand dollar. Fixed income trading was positive, with gains from short positions in short duration instruments, including SOFR and 2-year German bonds. Losses were incurred from long positions in Italian bonds.

The Partnership finished the quarter with positive performance in March net of fees, with gains led by equities and currencies, and offsetting losses from fixed income. The Partnership's long positioning in equity indices, particularly in Taiwan, generated gains. Losses were incurred form short positions in the Hang Seng and FTSE China A50 indices. Similar aggregate long positions in credit were also accretive, most notably in US investment-grade and high-yield indices. Trading in currency markets was beneficial in aggregate. The Mexican peso outperformed the US dollar, which was beneficial for the Partnership's long exposure. Short positions in the Japanese yen against multiple currencies generated gains as the currency continued to decline. Losses were experienced trading the Israeli shekel and British pound against the US dollar. Commodities trading was positive in aggregate. Energies returned a positive attribution, driven by a short in US natural gas and long positions in crude oil, whose price rose. The price of gold hit an all-time high, which was positive for the Partnership's long position. Losses from shorts in soybeans and corn took performance across agricultural into the negative despite a positive attribution from long cocoa. Fixed income trading finished the month negative as well, and flat aggregate net positions. The Italian 10-year bund futures performed positively, while a short position in SONIA generated a loss.