Man Investments this week launched Man RMF Multi-Style Series 2 Ltd (Series 2), a capital guaranteed structured product.
The new product utilises the investment selection expertise, asset allocation and risk management skills of RMF and allocates to five complementary hedge fund styles.
Series 2 targets an annualised return of 13-15% for an annualised volatility of 7-9% over the medium term1. Capital guarantees provided by BNP Paribas S.A. ensure investors the return of at least 100% of their initial investment at maturity2. The product, which will be offered in both EUR and USD classes, also benefits from enhanced investment exposure of approximately 150% of net asset value and a profit lock-in feature3.
Series 2 is the second capital guaranteed structured product to be launched by Man Investments that provides investors with exposure to the asset allocation, risk management and investment selection expertise of RMF. It follows on from the success of the first Man RMF Multi-Style guaranteed fund, which raised a record USD 819 million earlier this year.
RMF, one of Man Investments' core managers, will advise on the content, construction and management of the Series 2 portfolio. Its versatile investment model gives RMF the flexibility to create a broad spectrum of portfolios differentiated mainly by the diversification and exposure they offer to particular styles, strategies and managers. One of RMF's key strengths is its ISO-certified investment process, which helps reduce investment risk and increases the probability of delivering consistent and repeatable outcomes.
Series 2 will allocate to five complementary hedge fund styles: equity hedged, event driven, global macro, managed futures and relative value. Across these five styles, allocations will be made to a diversified range of quantitative and qualitative hedge fund strategies implemented by leading managers chosen by RMF. This product aims to perform independently of traditional stock and bond investments, thereby offering valuable diversification and enhancing the risk/return profile of an investment portfolio.
Series 2 targets investment exposure of approximately 150% of net asset value and also incorporates an enhanced principal protection structure that guarantees investors the return of at least 100% of the face value of their initial investment at maturity. In addition, provisions have been made to include a profit lock-in feature which, subject to trading performance, has the potential to elevate the level of the guarantees at maturity by locking in a portion of net new trading profits following periods of sustained profitability. The operation of both the guarantees and the profit lock-in feature are subject to the terms and conditions of the capital guarantees provided by BNP Paribas S.A.
BNP Paribas Group is one of the world's largest banking groups with offices in more than 85 countries providing retail and financial banking services to more than 20 million customers. The bank's long term senior debt is rated AA2 by credit rating agency Moody's, AA- by Standard & Poor's and AA by Fitch.
Man RMF Multi-Style Series 2 Ltd will be available to investors from 23 August 2004 to 4 October 2004.