Man Group Launches New Capital Guaranteed Product

Investors Offshore, London

30 October 2002

Man Investment Products yesterday announced the launch of a new capital guaranteed structured product, Man Multi-Strategy Series 4 Ltd ("Series 4"). Series 4 will target medium-term annualised growth of around 15% while aiming to restrict volatility to around 10% and will be available in both US$ and Euro Class Bonds. What separates this product from the previous products in the Man Multi-Strategy family of products is an enhanced principal protection structure - Series 4 guarantees investors a return of at least 120% of the Face Value of their initial investment at maturity.

Man Investment Products is part of Man Group plc, a leading international financial services business that is listed on the London Stock Exchange and is a constituent of the FTSE 100 index of leading shares.

Series 4 provides investors with access to a diversified portfolio of investment strategies implemented by a number of carefully selected advisers. The ability of the Man Multi-Strategy portfolio to generate returns and protect investors' capital during difficult market conditions for traditional assets has been highlighted by the performance of Man Multi-Strategy Guaranteed Limited, the first product in the family. As at 31 July 2002, Man Multi-Strategy Guaranteed Limited had substantially outperformed traditional investments, producing an annualised return of 14.9% since inception - compared to -20.3% for world stocks and 6.3% for world bonds over the same period.

Series 4 incorporates an enhanced principal protection structure that guarantees investors the return of at least 120% of the Face Value of their initial investment at maturity. In addition, provisions have also been made to include a Profit Lock-in Feature which, subject to trading performance, has the potential to elevate the level of the Guarantees at maturity by locking-in a portion of net new trading profits following periods of sustained profitability. The operation of both the Guarantees and the Profit Lock-in Feature are subject to the terms and conditions of the capital guarantees provided by The Royal Bank of Scotland plc³.

The Royal Bank of Scotland plc, a leading UK-based financial institution, is the second largest banking group in Europe and the fifth largest in the world, with a market capitalisation of £49 billion at 22 February 2002. It has more than 18 million personal customers and 2,287 branches in the UK. As at 31 December 2001, its assets were £368 billion and as at 17 July 2002 had a Aa1 senior debt rating from Moody's.

"Series 4 offers investors access to the impressive performance potential of the Man Multi-Strategy product family with the added benefit of 120% capital Guarantees", says Christoph Moeller, Man's sales director and chief executive officer in Switzerland. "Investors have again come to recognise the valuable diversification benefits alternative investments can offer an investment portfolio, particularly in turbulent markets as we are seeing this year."

Man Multi-Strategy Series 4 Ltd will be available to investors from 28 October to 6 December 2002 with a possible extension to the offer period.

Recommended