Man Group launched a capital guaranteed structured fund of hedge funds on 5 May investing in underlying portfolios pursuing arbitrage, managed futures, directional, equity hedge and long/short equities strategies.
The Man AP Unison Series 1 Ltd targets annualised returns of 14%-16% on a volatility of 8%-10% over the medium term, and has its capital guarantee written by WestLB AG. It will be open to investment until 13 June 2003.
The portfolio which will be offered in both dollar and euro share classes, also has a profit lock-in feature allowing the manager to secure net trading profits after periods of healthy profitability.
The product forms the latest in a series of capital guaranteed product from the Geneva-based alternative investments group.
The series began with the Man-AP Stratum Ltd, launched more than three years ago, and each in the family of capital protected funds aims to deliver conservative risk-adjusted returns.
Man-AP Stratum has delivered investors 74.8% since its inception in October 1999, compared to -33.7% from global equities and 26.1% for global bonds during the same period.
Man Group's funds of hedge funds have raised record amounts for the group.
Its Man Multi-Strategy Series 5, a product aimed mainly at the private client market and offering both capital and income bonds and a maturity on 31 May 2015, raised the equivalent of $725m before closing on 31 March. Its capital guarantee was written by ABN Amro.
The senior debt of WestLB AG, the latest product's capital guarantor, was rated AA+ by Standard & Poor's on 11 April.
What made financial headlines over the weekend?
To promote 'long-term investment'
Switching 'hard and expensive'
Smaller funds still packing a punch