Man Group PLC, the global provider of alternative investment products and futures broker, said it had launched its first U.S. Securities and Exchange Commission registered fund-of-hedge funds designed specifically for qualified individual retirement accounts and tax-exempt investors in the U.S.
The fund, Man-Glenwood Lexington TEI, LLC, is sponsored by Glenwood Capital Investments, L.L.C., a wholly-owned subsidiary of Man Group PLC.
“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,” said Stanley Fink, Chief Executive of Man Group PLC. “Launched last year, Man-Glenwood Lexington, LLC has attracted significant interest from these types of U.S. 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.”
Man Investments Inc., a U.S. subsidiary of Man Group PLC, is the fund’s primary distributor and will make the new fund available through a nationwide channel of intermediaries.
The fund will provide qualified U.S. investors access to the portfolio of an already established multi-strategy fund-of-funds which has a ten-year track record, Man said. The fund is the latest in a series of registered products the firm is launching in the U.S.
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 PLC’s first registered fund designed to eliminate unrelated business taxable income (UBTI) which is otherwise taxable to tax-advantaged investors, the company pointed out.
The fund is a closed-end investment company that uses a fund-of-funds strategy designed to preserve capital and generate attractive returns that have low correlation with traditional stock and bond markets, Man said.