LONDON (HedgeWorld.com)– Man Investment Products Ltd.* completed another successful launch of a structured hedge fund of funds with Man Multi-Strategy Series 4 Ltd., which closed with US$365 million worth of assets.
The offering had the unusual feature of guaranteeing 120% of principal at maturity of the structured security, which is in December of 2014. Royal Bank of Scotland, which carries an Aa1 senior debt rating from Moody’s Investor Services, is providing the guarantee, according to a Man statement.
Initial investments for Multi-Strategy Series 4 are expected to begin in the middle of this month, with managers targeting annualized growth of roughly 15%. Strategies to be included in the fund are long/short equity, event-driven approaches, managed futures and arbitrage strategies.
Man’s next global launch is slated for Feb. 10 when Man Multi-Strategy Series 5 Ltd. is opened, the Man statement says. Like the Series 4, it will carry a 120% guarantee, a Man spokesman said. At the last earnings announcement for parent company Man Group plc, in November, Man said it had 18% year-over-year growth in earnings over the six months ended Sept. 30. *Man Group plc, parent to Man Investment Products, is a minority investor in HedgeWorld.