Man Investments has launched Man AHL Guaranteed Futures 3 to meet demand from Hong Kong investors for products that can generate returns independently of traditional markets while protecting initial investment capital with a bank guarantee. The new fund also offers the profit potential of a series whose first product has produced a total return of 28.8 per cent over the past 18 months.
Man AHL Guaranteed Futures 3 will allocate to the AHL Diversified Programme, a managed futures programme that the firm says has delivered consistently strong returns since 1987. The product is authorised by Hong Kong's Securities and Futures Commission and has a minimum investment of USD 5,000, making it highly accessible to retail investors.
'This product targets substantial medium-term capital growth, regardless of overall market direction,' says Giselle Lee, executive director and head of sales for Man Investments in Hong Kong.
'The strength of this investment strategy is shown by Man AHL Guaranteed Futures, the first product in this guaranteed series, which has produced a total return of 28.8 per cent since its launch on October 4, 2006, and a 9.5 per cent return so far this year. This is the third tranche of the same series.
'Since the start of the year, equity markets have been very volatile due to continuing uncertainty in the US economy and the ongoing credit crisis. As a result, we are seeing strong demand for products that allow investors to diversify away from equities, as AHL does, but with protection of the initial capital investment adding extra comfort, especially for first-time investors in alternative products.'
AHL is a core asset management division of Man Investments and one of the largest managed futures programmes in the world with some USD20.9bn in assets under management at the end of last September.
The 15-year-old AHL programme is a directional trading system that uses quantitative trading strategies to identify and take advantage of price trends and exploit inefficiencies in more than 140 financial markets around the world.
Man Investments launched its first Hong Kong SFC-authorised futures fund, Man AHL Diversified Futures, in May 1998. At the end of April, the fund had delivered a total return of 284.9 per cent and an annualised return of 14.4 per cent.
The offer period for Man AHL Guaranteed Futures 3 lasts until June 30, and the fund's maturity date is December 31, 2014. The minimum investment is USD5,000 or AUD5,000, and the guarantee is provided by Credit Suisse International.
Man Investments, part of a business originally founded in 1783, manages assets totalling more than USD75bn and employs 1,600 people in 13 countries. Man Group is listed on the London Stock Exchange with a market capitalisation of about USD20bn.