LONDON (HedgeWorld.com)--The latest structured product from Man Group plc* raised the equivalent of US$625 million to be invested in diverse hedge fund strategies.
Man Multi-Strategy Series 6 Ltd. was offered globally in euros and U.S. dollars. It guarantees investors the return at maturity of at least 120% of their initial investment, with principal protection provided by ABN AMRO Bank.
Proceeds from the note will be allocated to arbitrage, equity hedge, funds of funds, long/short equity and managed futures strategies. The offer closed on Dec. 15, 2003, and initial investments are expected to happen by the middle of January.
The first product in the Man Multi-Strategy series was started in July 2000. Since inception, this vehicle generated an annualized return of more than 12% with volatility of 11.6% as of Nov. 30, 2003, according to the company. By comparison, during the same period stocks worldwide fell by 7.9% on an annual basis while bonds made 9.7%.
Man's next global product, RMF Multi-Style Ltd., will open for investment Feb. 9. Its U.S. dollar and euro class bonds target medium-term annualized growth of around 13% to 15% for volatility of 7% to 9%. RMF, the Swiss-based fund of funds that is part of Man Group, will allocate the proceeds to hedged equity, event-driven, global macro, managed futures and relative value managers, with the allocation depending on the prospects for each strategy.
Total assets under management by Man Group were estimated at US$32.5 billion as of Oct. 31 .
*Man Group plc is a minority investor in HedgeWorld.