Man Group has launched its first fund-of-funds to be registered with the US Securities and Exchange Commission. It is aimed at qualified individual retirement accounts and tax-exempt investors in the US.
The fund, Man-Glenwood Lexington TEI, LLC, is sponsored by Glenwood Capital Investments, a wholly owned subsidiary of Man Group plc. Man Investments Inc., a US subsidiary of Man Group plc, is the fund’s primary distributor and will distribute through a nationwide channel of intermediaries. The fund will provide qualified US investors access to the portfolio of an already established multi-strategy fund-of-hedge funds which has a ten year track record. The fund is the latest in a series of registered products the firm is launching in the US.
“We expect that Man-Glenwood Lexington TEI, LLC will satisfy the high demand for fund-of-hedge funds among tax-deferred and tax-exempt investors,” says Stanley Fink, Chief Executive of Man Group. “Launched last year, Man-Glenwood Lexington LLC has attracted significant interest from these types of US investors. Thus, we felt Man-Glenwood Lexington TEI, LLC would offer qualified tax-deferred and tax-exempt investors a product designed to address their specific tax requirements.”
The structure of the fund allows eligible investors with tax-advantaged status — pension plans, employee benefit plans, foundations and endowments, and individual retirement accounts (IRAs) — to invest with a minimum of $25,000. This is Man Group’s first registered fund designed to eliminate unrelated business taxable income (UBTI) which is otherwise taxable to tax-advantaged investors. The fund is a closed-end investment company that uses a fund-of-hedge -funds strategy designed to preserve capital and generate attractive returns that have low correlation with traditional stock and bond markets.