ED&F Man has launched another tranche of the Man-IP 220 alternative investment funds series. The Ser...
ED&F Man has launched another tranche of the Man-IP 220 alternative investment funds series.
The Series II fund 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.
Additionally, the structure is supported by a guarantee underwritten by a leading financial institution. This guarantees the repayment of at least the investor's initial capital at the maturity of the fund in November 2009.
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.
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 ED&F Man Investment Products' portfolio.
The AHL Diversified programme invests in around100 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.
There is also a credit facility underwritten by ED&F Man Investment Products. This allows every $100 of NAV to be traded as if it were $160 without any additional capital requirement from the investor. This additional investment exposure is allocated to the Man-Glenwood portfolio.
Following an excellent year in 1998, many managed futures funds underperformed in 1999 because of difficult global conditions, including a downturn in European growth, uncertainty about the future of Japan's economy and a large degree of interest rate speculation.
ED&F Man recently announced it was to launch two open-ended joint venture funds as part of its drive to diversify away from the core AHL trend-following strategy (see International Investment January 2000). The new funds, Man-Vector and Man-Fidex, aim to make good returns when markets are flat or trading sideways.
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