Man Investment Products launched another capital guaranteed product today, but with a novel twist: the Man IP 220 Series 4 Ltd guarantees investors the return of at least 120% of their initial investment at maturity. The Guarantor, Lloyds TSB Bank plc, is the only major shareholder owned bank in the world with a ‘triple A’ rating.
Series 4, which will be available in both US$-Class and Euro-Class Bonds, targets medium-term annualised growth of around 17-18%1 for each Class of Bond while aiming to restrict volatility to around 14-15%1.
The Man IP 220 concept has proved to be one of Man’s most successful products. The original Man IP 220 product has achieved an annualised net return of 18.8% since inception in December 19962. Like its predecessors, Series 4 provides investors with access to two of Man’s investment strategies – the Man-AHL Diversified Programme and the Man-Glenwood Portfolio – but with the 120% of principal guarantee at maturity on 30 November 2013 in respect of the US$-Class Bonds and 30 November 2014 in respect of the Euro-Class Bonds – subject to the terms and conditions of the Guarantees.
Series 4 is also the first product in the Man IP 220 family to include provisions for a profit lock-in feature. This allows for the ‘locking-in’ of a portion of net new trading profits following periods of sustained profitability for Series 4, potentially elevating the guarantee levels at maturity. The operation of this feature is subject to the discretion of the investment manager and the prior approval of Lloyds TSB Bank plc.
“The impressive performance potential of Series 4 is backed by years of success with the previous three series in the product family”, says Christoph Moeller, Man’s sales director and chief executive officer in Switzerland. “The innovation of a capital guarantee arrangement that provides for the return 120% of initial capital makes this an extremely attractive investment opportunity which provides both significant upside and a guaranteed minimum return for investors who hold the product through to maturity”.
Man IP 220 Series 4 Ltd will be available to investors from 26 August to 4 October 2002 with a possible extension to the offer period.