Man Investment Products, an international alternative investment manager and part of Man Group plc, is soon to launch its latest capital guaranteed structured product. Man AP Strategic Series 1 Ltd (Man AP Strategic), which will be available in both US$-Class and Euro-Class Bonds, targets medium-term annualised growth of around 14-16%1 for each Class of Bond while aiming to restrict volatility to around 10-11%1. Man Investment Products is part of Man Group, a leading international financial services business that is listed on the London Stock Exchange and is a constituent of the FTSE 100 index of leading shares.
Man AP Strategic is an important addition to the Man AP product family, which was established just over two years ago. The defining feature of this product family is its conservative risk-adjusted target returns. The first product in this family, Man-AP Stratum Ltd, was designed to target annualised growth of 16 – 18% while seeking to limit the associated risk. It has outperformed this target range to date but still maintained impressively low volatility.
Man AP Strategic aims to continue this conservative investment theme but takes a more defensive approach than Man-AP Stratum.
Man AP Strategic will provide investors access to Man’s successful managed futures programme, the AHL Institutional Portfolio, as well as complementary arbitrage and equity hedge styles implemented by a range of carefully selected advisers.
A capital guarantee2 by a first class bank ensures investors the return of at least the face value of the bonds they hold at maturity, subject to relevant terms and conditions. In addition, a profit lock-in feature will allow a portion of net new trading profits to be locked in following periods of sustained profitability for Man AP Strategic, with the agreement of the guarantor bank, meaning that the guarantee level may rise.
“Increasingly, investors realise the importance of diversifying their portfolios to minimise risk,” says Christoph Moeller, director of sales at Man Investment Products. “Man AP Strategic Series 1 Ltd is likely to appeal to investors seeking diversification because of its potential to generate absolute returns independently of the future outlook for equity markets. Our ability to generate profits in rising but also falling markets was again demonstrated clearly during last year.”
Man AP Strategic will be available to investors from 11 February 2002 to 22 March 2002, with a possible extension to the offer period.