Man Investments, one of the world’s largest hedge fund providers, today launched a new capital guaranteed product that invests in an actively managed, concentrated portfolio of sought-after investment managers selected by Man Global Strategies (MGS).
Man MGS Access Ltd, the first in a new product family from MGS, will target substantial capital growth over the medium term.
Antoine Massad, Chief Executtive Officer for Man Investments Middle East and Head of Asia for Man Investments, said: “Diversifying portfolios allow investors to reduce their risks in unpredictable market conditions, such as happened over the past few months in some of the GCC markets. The new “Man MGS Access” fund offers such diversification for investors in the region, and gives them the security of capital guarantee and profit lock-in.”
The product is offered in USD-class bonds and EUR-class bonds providing investment exposure of 150% of net asset value1. The bond classes have slightly different targets for medium-term returns but the same volatility targets.
Targetted annualised returns for the <?xml:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" />US$ bond class ranges from 13 to 16 per cent, with a targetted annualised volatility of 8 to 10 per cent. Targetted annualised returns for the Euro is 11 to 14 per cent with a similar targeted annualised volatility.
Investors in both bond classes will benefit from a capital guarantee2 and a profit lock-in feature3. The guarantee, from Credit Suisse International, will ensure they receive USD1/EUR1 for each USD-class bond or EUR-class bond they hold at maturity.
The underlying portfolio currently consists of the 14 MGS hedge fund managers that the MGS Investment Committee rates most highly. Several of these managers were initially seeded by MGS and a number are closed to all other investors. All are accessed through managed accounts which provide MGS with daily position level trading data.
Managers from five investment styles - arbitrage, directional, equity hedge, long/short equities and managed futures –are considered for allocations through MGS’ portfolio optimisation process once they attain a threshold rating.
MGS, a core asset manager of Man Investments, is a leading provider of multi-strategy hedge fund portfolios. It aims to secure the best managers in the industry on favourable terms. These include more detailed reporting from managers and, in later years, preferential access to leading managers that are often closed to other investors.
To achieve these special manager relationships, MGS typically invests in early-stage managers, often using its own proprietary capital, and then works closely with managers to help them reach their full potential. Managers are rated according to a range of quantitative and qualitative measures. As their rating improves, MGS will increase the amount of capital it invests with a manager and give them a greater role in its portfolio.
“This is a rare opportunity for private investors to access some of the best hedge fund managers in the industry in an attractive, risk-controlled package that offers the potential for strong capital growth,” said Antoine Massad.
Man MGS Access Ltd is on offer from 21 August to 3 October 2006.
Fund details
|
Offer period |
21 August 2006 to 3 October 2006 |
|
Maturity date |
30 November 2018 |
|
Currencies |
USD and EUR |
|
Minimum investment |
USD 50,000 or EUR 50,000 |
|
Purchase price of bonds |
USD/EUR 1 per bond |
|
Minimum holding |
50,000 bonds |
|
Minimum redemption |
20,000 bonds |
|
Sales charge |
none |
|
Investment manager |
Man Investments Limited |
|
Guarantor |
Credit Suisse International |
1The investment manager will seek to provide investment exposure of 150% of the prevailing NAV of the USD class bond and the EUR class bond account.
2The guarantees are subject to the terms and conditions of the relevant deed of guarantee. Only bonds that are outstanding on the maturity date and that have not been redeemed prior to the maturity date will have the benefit of the relevant deed of guarantee.
3On the advice of the investment manager and subject to the prior written consent of Credit Suisse International in its discretion and the terms and conditions of the relevant deed of guarantee. The profit lock-in feature will only be activated if the target investment exposure of the relevant class reaches 150% of the prevailing NAV of the relevant bond account.
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 had over USD54 billion dollars in funds under management as at 30 June 2006. 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. In its core hedge fund asset class, Man Investments offers funds of hedge funds, structured and style products. Its track record stretches back more than two decades and defines the standard for excellence in an industry whose central goal is to provide diversification away from traditional equity and bond investments. Man Investments has a powerful global presence with central operations in Pfäffikon (Switzerland) and London and key centres in Chicago, Montevideo, Hong Kong, Sydney, Tokyo and Dubai and has an extensive network of distribution partners. Further information on Man Investments can be found on the internet 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 4000 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.
