RMF Investment Management, one of Man Investments’ core investment managers, has completed a EUR 235 million collateralized fund obligation (CFO) that offers efficient leveraged access to the RMF Four Seasons fund of hedge funds portfolio.
This innovative product-type, pioneered by Man Investments, was launched in partnership with French investment bank Ixis and is the first of its kind from RMF.
The RMF Four Seasons CFO issued five tranches of debt, and one of equity, at record low spreads for a CFO. The proceeds of this issue were invested in shares of RMF Four Seasons. This allowed investors to either gain fives times leveraged exposure to the performance of the Four Seasons portfolio or, to buy rated, attractively priced bonds secured by a fund of hedge funds portfolio.
RMF Four Seasons is a highly diversified fund of hedge funds that targets consistent, low volatility returns by allocating to approximately 200 leading hedge funds. As at 31 July 2006, the product had generated an annualised return of 7.16% since its inception in August 1999, for a volatility of just 3.64%.1
“This CFO deal is a further example of the strong synergies between Man Investments and RMF, combining Man’s leadership in product structuring and transaction management with a highly-diversified RMF portfolio,” said Sven Lidén, a member of RMF’s management committee. “RMF’s process-driven and disciplined approach to investment allows us to target, and achieve, the low-risk, repeatable returns necessary to structure such a product.”
Following the success of this latest product innovation, RMF is now working on a second CFO offering.
1 There is no guarantee of trading performance and past or projected performance is no indication of current or future performance/results.
About RMF
RMF is a leading provider of alternative investment solutions in Europe, specialising in hedge funds, leveraged finance and convertible bonds. RMF is headquartered in Pfäffikon/SZ, Switzerland, and also has offices in London, New York Tokyo and the Bahamas. RMF currently manages USD 22.7 billion1 of assets, with approximately USD 19.2 billion1 invested in fund of hedge fund products. RMF began as a hedge fund manager in 1992 with a mandate from one of the world’s most prestigious market neutral hedge funds. Since then it has focused on servicing investors by providing a range of comprehensive products and solutions. RMF is part of Man Investments, the asset management division of Man Group plc, a FTSE 100 company.
About Man Investments
Man Investments is an independent leader in alternative investments delivering innovative products and tailor-made solutions to private and institutional clients. The company has always focused exclusively on alternative investments and, through its core investment managers, has developed in depth knowledge and specialised strengths in different alternative asset classes - hedge funds, leveraged finance and convertible bonds. Established in 1983, Man has launched around 450 products, many of them with leading financial institutions. It manages over USD 54 billion1 and employs 1300 people worldwide. Man’s headquarters are in Switzerland and London and it also has offices in Chicago, Hong Kong, the Middle East, Nassau, Montevideo, New York, Sydney, Tokyo and Toronto.
