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Portfolio > Alternative Investments > Hedge Funds

Man Unveils Guaranteed Fund

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LONDON (HedgeWorld.com)–Man Investment Products Ltd.* launched a structured hedge fund with a 120% capital guarantee, after a successful offering of a similarly structured fund.

The Man Multi-Strategy Series 4 Ltd. was launched Monday, Oct. 28, on the heels of the US$670 million introduction of the Man IP 220 Series 4 Ltd.

Like its predecessors in the series, the Multi-Strategy Series 4 Fund will use a combination of hedge fund strategies, including long/short equity, event-driven approaches, managed futures and arbitrage. (The IP 220 funds combine Man’s AHL futures management with hedge funds selected by its unit Glenwood Capital Management.) The managers are shooting to earn annualized growth of 15% while limiting volatility to 10%, according to a Man statement.

Royal Bank of Scotland provides the 120% guarantee at maturity of the bond, which is in December 2014. In addition, the guarantee could rise higher than that if returns over the length of the security hit certain levels. The minimum investment is US$50,000 or 50,000 euro. The bonds are redeemable monthly with 16 calendar-days notice, though varying redemption fees will be applied before Jan. 31, 2009.

Hemisphere Management Ltd. is the fund registrar.

*Man Group plc, parent to Man Investment Products, is a minority investor in HedgeWorld.


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