Man Investment Products has launched its fourth hedge product in the Man-IP 220 Plus Series, writes...
Man Investment Products has launched its fourth hedge product in the Man-IP 220 Plus Series, writes Joanne Frearson.
The Man-IP 220 Plus (Series 4) applies a range of investment strategies to a diversified portfolio of liquid futures contracts as well as investing in a multi-manager fund of funds.
The main investment strategies of the fund are the trend-following AHL Diversified portfolio and the multi-strategy Man-Glenwood portfolio.
Trading capital can also be allocated to a range of complementary alternative investment strategies implemented by managers that form part of Man Investment Products' portfolio.
The AHL Diversified programme invests in around 100 global markets, including stocks, bonds, currencies, short-term interest rates and commodity futures and seeks to exploit medium to long-term trends to achieve enhanced returns.
The Man-Glenwood portfolio invests in a wide range of alternative strategies via selected managers and seeks to minimise risk relative to return potential and achieve consistent capital growth.
Additionally, the structure is supported by a guarantee. This guarantees the repayment of at least the investor's initial capital at the maturity of the fund.
The new fund also includes a profit lock-in feature whereby a portion of net new trading profits can be locked in following periods of sustained profitability.
If the guarantor consents, the operation of this mechanism will raise the level of the capital guaranteed at maturity.
Investors in Series 4 will benefit from increased investment exposure of 160 US dollars or euros for every 100 US dollars of euros invested.
Man-IP 220 Plus (Series 4) will be available to investors from 27 August to 5 October, with a possible extension to the offer period. The product is registered in Bermuda.
Minimum investment is 50,000 bonds. Investors may apply for a combination of US dollar and euro-denominated bonds, subject to a minimum of 20,000 bonds in each class and a total minimum aggregate subscription of 50,000 bonds.
The US dollar class bonds' maturity date is 31 March 2012 and the euro class bonds' maturity date is 31 March 2013.
This product is likely to be of interest to those investors that are disapointed in current long-only traditional fund management techniques and that are looking for further diversification of their investment portfolios. Interested investors may also be seeking greater stabilty in the currently volatile equity and bond markets.
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