Man Investments, one of the world’s largest hedge fund providers, today announced a new capital guaranteed product in its Man AP family. Man AP Spectrum Ltd combines for the first time the proven performance of the AHL Institutional Programme with a significant allocation to Bayswater, a San Francisco-based quantitative global macro manager. It also allocates capital to four Man Global Strategies style portfolios to provide added opportunities for profit and diversification.
The Bayswater Macro Programme achieved annualised returns of 14.4% between 1 August 2004 and 28 February 2007 while the AHL Institutional Programme generated annualised returns of 17.1% in the timeframe 17 October 1995 to 28 February 2007.
Both AHL and Bayswater are built on the philosophy that financial markets are inefficient and can be exploited by applying systematic and non-discretionary trading models. The difference is that Bayswater takes a longer term global macro approach while AHL aims to capture short and medium term trends on a wide range of global markets. The mix of the two managers in a portfolio is attractive since they are complementary due to the low correlation (0.28 for the period 1 August 2004 to 28 February 2007) and have the potential to capture profits at different points in a market cycle in a wide range of markets.1
“We are pleased to offer investors access to Bayswater as a core component of a structured investment product for the first time”, said Antoine Massad, Chief Executive of Man Investments Middle East, “the complementary nature of AHL and Bayswater will add a new dimension to the traditional Man AP portfolio”.
Man AP Spectrum Ltd is offered in a choice of USD and EUR bonds, each targeting mean annualised returns of 13-16% (USD bonds) and 11-14% (EUR bonds) for a mean annualised volatility of about 9-11% for both bond classes. Investors will also benefit from a capital guarantee provided by Merrill Lynch International Bank Limited, and a profit lock-in feature.
Man AP Spectrum Ltd will be open for investment from 23 April 2007 to 4 June 2007.
Key facts
Product Name Man AP Spectrum Ltd
Legal Structure Man AP Spectrum Ltd is an exempted company incorporated with limited liability in Bermuda under the Companies Act 1981 of Bermuda and registered as a segregated accounts company under the Segregated Accounts Companies Act 2000 of Bermuda.
Offer Period 23 April 2007 to 4 June 2007
Face value of the bonds USD/EUR 1 per bond
Sales charge None
Minimum Subscription USD bonds USD 50,0003
EUR bonds EUR 50,000
Minimum Redemption 20,000 bonds
Minimum Holding 50,000 bonds
Liquidity Bonds are redeemable monthly
Maturity Date 30 August 2019
About Man Investments
Man Investments, the Asset Management division of Man Group plc, is a global leader in the fast-growing alternative investments industry. It provides innovative products and tailor-made solutions to private and institutional investors. Through its core investment managers – AHL, Glenwood, Man Global Strategies and RMF – Man Investments has succeeded in developing leadership in hedge funds and has interests in other asset classes. Established in 1983, Man Investments has launched over 450 products, many of them with leading financial institutions. It manages over USD 61 billion and employs more than 1,300 people worldwide. Man Investments has key centres in London and Pfäffikon (Switzerland), and offices in Chicago, Hong Kong, the Middle East, Montevideo, Nassau, Sydney, Tokyo and Toronto. Further information on Man Investments can be found at www.maninvestments.com
About Man Group plc
Man Group plc is a leading global provider of alternative investment products and solutions as well as one of the world's largest futures brokers. The group employs over 4,000 people in 16 countries, with key centres in London, Pfäffikon (Switzerland), Chicago and New York. Man Group plc is listed on the London Stock Exchange (EMG.L) and is a constituent of the FTSE 100 index. Further information on Man Group can be found at www.mangroupplc.com.
About MGS
Man Global Strategies (MGS) is a leading provider of multi-strategy hedge fund portfolios that aims to secure access to the best managers in the hedge fund industry on favourable terms, typically by investing at an early stage. These terms include more detailed reporting, managed accounts and, in later years, secured capacity in leading managers and give MGS the edge in developing value-added structured products. It is an investment approach that has been constantly refined since 1996, when the Man-IP 220 Limited structured product was developed. Other successful product families have followed, including the Man Multi-Strategy and Man-AP families which offer different target risk and return ranges over the medium-term. MGS also creates portfolios for banks and other institutional partners operating in local markets around the world. MGS is responsible for the investment selection, portfolio construction and portfolio management of Man AP Spectrum Ltd
About AHL
AHL implements managed futures investment programmes with an impressive record of exploiting trends in a range of global markets. These programmes are quantitative and primarily directional in nature, meaning they seek to identify and take advantage of upward and downward price trends. Trading takes place around-the-clock and real-time price information is used to respond to price movements across a diverse range of global markets encompassing stock indices, bonds, currencies, short-term interest rates and commodities.
About Bayswater
Based in San Francisco, Bayswater Asset Management LLC manages the Bayswater Macro Programme. The principals in the Bayswater investment team haven been developing and refining quantitative models together for more than then years. They started the Bayswater business using their capital and a significant investment from MGS. Bayswater uses a specialised investment methodology that incorporates five diversified strategies. These strategies have a low correlation to traditional asset classes and other hedge fund approaches.
Important Information
This material is communicated by Man Investments Ltd which is not a member of the Man Group. This material is not an invitation to make an investment in any product to which Man Investments Limited (or any other member of Man Group plc’s group of companies) provides investment advisory or any other financial services, nor does it constitute an offer for the sale or purchase of bonds (or any other instruments) issued by any entity.
