ED&F Man has launched a new series of its Multi-Strategy guaranteed product. Man Multi-Strategy Guar...
ED&F Man has launched a new series of its Multi-Strategy guaranteed product.
Man Multi-Strategy Guaranteed Series II will invest in a number of underlying funds.
The strategies used include long/short securities selection, event driven, market neutral and arbitrage and managed futures.
The product is issued as a series of bonds which, if held to maturity in November 2009, carry a guarantee from Bank of America that the investor will receive a return of at least 100% of the original investment.
There will also be a profit lock-in feature whereby a portion of net new trading profits can be locked-in following periods of sustained profitability.
To enhance investment exposure and performance every $100 of net asset value will be traded as $150. This is done via a credit facility underwritten by ED&F Man Investment products.
John Kelly, director of sales at ED&F Man, said: "By implementing a number of diverse strategies the product will seek to avoid over-concentration in any single asset class, sector or strategy, thereby smoothing the effect of possible above- or below- average performance by an individual investment style in particular market conditions."
A wide variety of asset classes and financial instruments will be used to apply the selected strategies.
The first tranche of the Multi-Strategy Guaranteed Series closed to new investment in early July 2000 having raised over $55m.
Securities selection strategies involve using a range of quantitative and qualitative valuation criteria, which can be applied on a top-down or bottom-up basis. Event driven strategies look to profit from market inefficiencies arising from distressed securities or actual or anticipated special situations such as mergers, acquisitions, leveraged buy outs, corporate re-organisations, spin-offs or tender offers.
Market Neutral and Arbitrage strategies are designed to be profitable regardless of the overall direction of broad market prices. Typically they exploit pricing anomalies between related securities within and between markets.
Managed Futures strategies apply a systematic or discretionary approach to trading primarily futures contracts on both the long and the short side.
The minimum investment is $50,000.
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