LONDON (HedgeWorld.com)–Two principal-protected hedge fund notes recently offered by Man Group plc* together raised the equivalent of US$770 million.
Man Global Strategies Diversified raised more than US$640 million in two currency classes, euros and dollars. It was available to investors from late August to early October . In addition, Man Multi-Strategy CHF, a Swiss product, brought in the equivalent of US$130 million in Swiss Francs.
The proceeds from the two notes will be allocated to arbitrage, directional, equity hedge, long/short equity and managed futures strategies and, in the case of Man Multi-Strategy, also to multi-strategy managers. According to the firm, these products differ from earlier Man offerings in providing access to a wider range of managers and strategies.
Both come with at least 100% capital protection and a potential profit lock-in feature. Lloyds TSB Bank plc provides the guarantee for Man Global Strategies and Royal Bank of Scotland plc for Man Multi-Strategy CHF.
Man’s next global launch, Multi-Strategy Series 6 Ltd., is to open for investment on Oct. 27. It will target medium-term annualized growth of around 15% to17% for volatility of 10% to 12%. It comes in U.S. dollar and euro class bonds and offers a 120% capital guarantee.
The first product in the Man Multi-Strategy family has been operating for more than three years and has an annualized return of 12.4% from its inception on July 15, 2000 through Aug. 31, 2003. Another guaranteed note launched this year, AP Unison Series 1 Ltd., raised more than US$740 million. The firm manages US$30 billion in total assets.
Man Group’s share price was at 1,411 pence (almost US$24, as of this writing, up from a low of 808 pence earlier this year. The stock had been undervalued until recently .
*Man Group plc is a minority investor in HedgeWorld.