Man Group Launches New Capital-Guaranteed Hedge Fund Product

by Carla Johnson, Investors Offshore.com, London

28 August 2003

On Tuesday Man Investments announced the launch of its latest product, Man Global Strategies Diversified Ltd, a capital-guaranteed structured product that makes strategic allocations to arbitrage, managed futures, directional, equity hedge and long/short equities investment styles. Capital guarantees provided by Lloyds TSB Bank plc ensure investors the return of at least 100% of their initial investment at maturity.

Man Global Strategies Diversified Ltd will differ from earlier products by providing access to a wider range of managers and strategies that give even greater diversification for lower volatility, while still providing the clear advantages of principal protection, profit lock-in and increased investment exposure

London-based Man Group announced in July that its managed assets had risen to over $30 billion from $26.7 billion at the end of March. Man Group chairman Harvey McGrath also said in a statement the company's brokerage division, Man Financial, "continues to perform well due to active markets and the continued benefits we are seeing from the integration of GNI". Man bought the futures brokerage GNI last year.

Man Investments also recently announced the launch of a new fund of hedge funds product, the Man RMF Diversified. The Luxembourg-registered fund of hedge funds, which is a sub fund of Man RMF Investments SICAV, is the first such open-ended product from Man Investments to provide access to the investment management strengths of RMF for both institutional and private clients. Man acquired Swiss-based hedge-fund manager RMF in 2002.

Man RMF Diversified will invest in equity hedged, relative value, event driven, global macro and managed futures investment styles, and will target annualised returns of around 10% for annualised volatility of 6-7% over the medium term.

The fund will have a portfolio of between 15 and 25 hedge funds, and there will be a low level of correlation between the investing styles of the hedge funds in question, in order to facilitate the provision of stable returns to investors.

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