Man Group Raises US$800m With New Hedge Fund

Investors Offshore, London

21 October 2002

Man Group plc, the international hedge fund manager and futures broker, announced last week that its most recent global launch, Man IP 220 Series 4 Ltd (“Series 4”) has raised nearly US$800 million of client money, a record for any single product offering.

The issue is the latest in a series of Man IP 220 style products that, says Man, have delivered impressive risk adjusted returns to investors. The original Man IP 220 product has achieved an annualised net return of 19.4% since inception in December 1996.

Man IP 220 Series 4 carries a capital guarantee from Lloyds TSB Bank to return at least 120% of subscribers initial investment at maturity. The structured product, offered in two currency classes (Euros and US dollars), will comprise investment exposure to the Man-AHL Diversified Programme and the Man-Glenwood Portfolio.

Philip Chambers, head of European Sales at Man, says the fund appeals to "the risk-averse nature of investors at the moment" and adds that: "It had an overwhelming response; it is the biggest fund we've ever launched."

Commenting on the launch, Stanley Fink, Chief Executive of the Man Group plc, said:

“This latest record product launch demonstrates the continued ability of the Man Group to structure and distribute products with enormous appeal to investors internationally. Man Group's latest investment offering attracted a high level of demand due to its performance potential, backed by an impressive track record, and its low correlation with equity markets. This is an extremely attractive investment opportunity combining a capital guarantee arrangement that provides for the return of 120% of initial capital, with access to the portfolio diversification benefits of alternative investments. This further sales success will increase assets under management and underpin continued significant growth in management fees.”

The next global launch of a structured product will be Man Multi Strategy Series 4 Ltd, which will be open for investment on 28 October 2002.

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