Man Investments has launched a new multi-strategy structured product called Man Global Strategies Diversified Ltd.
Christoph Moeller, Man Investments Swiss-based Global Head of Sales and Marketing, said: "Man Global Strategies Diversified Ltd provides investors with the opportunity to benefit from an expertly composed product with solid risk and return objectives over the medium term. Man Global Strategies Diversified Ltd has a number of attractive aspects for any level of investor, including a built-in guarantee, profit lock-in feature, increased investment exposure and valuable portfolio diversification properties."
The new product is capital guaranteed and makes strategic allocations to arbitrage, managed futures, directional, equity hedge and long/short equities investment styles.
Man Global Strategies Diversified Ltd targets annualised returns of 13-15% for volatility of 7-8% over the medium term.
Capital guarantees provided by Lloyds TSB Bank plc ensure investors the return of at least 100% of their initial investment at maturity. The product also benefits from a profit lock-in feature and will be offered in both EUR and USD classes.
Man Global Strategies Diversified Ltd is the latest structured product to apply the knowledge and experience of Man Global Strategies investment committee. The investment professionals at Man Global Strategies have refined their multi-strategy asset allocation skills since 1996, when Man Investments launched its first multi-strategy structured product, Man-IP 220 Limited. Subsequent product families include the Man AP and Man Multi Strategy product ranges. Each product family has been constructed to deliver specific return and volatility targets.
In a statement, Man Investments said: "Man Global Strategies Diversified Ltd will differ from earlier products by providing access to a wider range of managers and strategies that give greater diversification for lower volatility, while still providing the clear advantages of principal protection, profit lock-in and increased investment exposure".
Man Global Strategies Diversified Ltd 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, the product has the benefit of 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 Lloyds TSB Bank plc, one of the leading UK-based financial services groups. Lloyds TSB Bank plc had a Aaa credit rating from Moody's, also as at 28 May 2003.
Man Global Strategies Diversified Ltd will be available to investors from 25 August 2003 to 3 October 2003.
Background Note: Man Investments (Man), the asset management arm of Man Group plc, is an independent and global leader in alternative investments, providing products and tailor-made solutions for private and institutional clients. Through its core investment managers, Man developed specialised strengths in different alternative asset classes hedge funds, private equity, leveraged finance and convertible bonds. Established in 1983, Man has launched more than 200 products, many of them with leading financial institutions. It manages in excess of USD 30 billion and employs more than 700 people worldwide. Man's headquarters are in Switzerland and London and it also has regional offices in Chicago, Hong Kong, the Middle East, Montevideo, New York and Tokyo.
Man Investments principal investment managers are AHL, Glenwood, Man Global Strategies, RMF and Westport.
- AHL implements managed futures investment programmes. These programmes are quantitative and primarily directional in nature, meaning that they seek to take advantage of upward and downward price trends.
- Glenwood is a pioneer in providing multi-manager funds of hedge funds portfolios that target low risk.
- Man Global Strategies constructs and manages hedge style and multi-strategy portfolios, including structured product portfolios often with principal protection, mainly targeted at private investors.
- RMF provides fund of hedge funds and tailor-made solutions for institutional investors as well as convertible bond and leveraged finance products.
- Westport is a specialist in offering global private equity fund of funds solutions to institutional clients.