Man Launches New Capital Guaranteed Product

Man Investment Products today announced the launch of a new capital guaranteed structured product, Man Multi Strategy Series 5 Ltd ('Series 5'). Series 5 is the first in the Man Multi Strategy product family to offer capital ('Series 5 Capital')

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Man Investment Products today announced the launch of a new capital guaranteed structured product, Man Multi-Strategy Series 5 Ltd (‘Series 5’).

Series 5 is the first in the Man Multi-Strategy product family to offer capital (‘Series 5 Capital’) and income (‘Series 5 Income’) bonds, providing investors with the choice of how they access the product. Both Series 5 Capital and Series 5 Income will provide investors with access to Man’s multi-strategy/multi-adviser investment approach, the Man Multi-Strategy portfolio. Series 5 Capital and Series 5 Income will also enjoy the benefit of capital guarantees provided by ABN AMRO Bank N.V., which will ensure investors the return of at least 100% of their initial investment at maturity.

Series 5 Capital provides investors conventional access to the Man Multi-Strategy portfolio and will be offered in both EUR and USD classes. It will target similar risk-adjusted returns to previous products in the Man multi-strategy family (annualised returns of around 17% for an annualised volatility of around 12%)1 as well as provide the benefit of capital guarantees and a profit lock-in feature.

Series 5 Income has been structured to appeal to the more risk-conscious investor, initially targeting annualised returns of around 14% for an annualised volatility of around 9%.2 For the first four years, investors in Series 5 Income will also receive a fixed annual coupon payment of 2%, calculated on the face value of the bonds held on each coupon payment date, after which time it will aim to pay a coupon up to prevailing one-year USD LIBOR rates.

The ability of the Man Multi-Strategy portfolio to generate returns and protect investors’ capital during difficult market conditions for traditional assets has been highlighted by the performance of Man Multi-Strategy Guaranteed Limited, the first product in the family. As at 31 December 2002, Man Multi-Strategy Guaranteed Limited had substantially outperformed traditional investments, producing a total return of 38.4%3 since inception – compared to -40.1% for world stocks and 24.5% for world bonds over the same period.

Both Series 5 Capital and Series 5 Income will enjoy the benefit of principal protection. The capital guarantees provided by ABN AMRO Bank N.V. ensure investors the return of at least 100% of their initial investment in respect of those bonds held at maturity (subject to the terms of the guarantees). The ABN AMRO group is a global banking group offering a wide range of commercial and investment banking products and services on a worldwide basis through its network of approximately 3,400 offices and branches in more than 60 countries. The ABN AMRO group ranks 10th in Europe and 22nd in the world based on tier 1 capital and has total assets of EUR 607.5 billion at 30 June 2002.

The release of Series 5 follows the successful launch of Man Multi-Strategy Series 4 Ltd, in which total aggregate subscriptions in USD terms amounted the equivalent of USD 365 million. “By offering investors a choice of how they access the Man Multi-Strategy portfolio, Series 5 caters to a very wide range of investors”, says Christoph Moeller, Man’s sales director and chief executive officer in Switzerland. “Investors in this innovative product structure can choose between the four-year guaranteed income that Series 5 Income offers or the potential for higher initial capital appreciation targeted by Series 5 Capital.”

Man Multi-Strategy Series 5 Ltd will be available to investors from 10 February to 21 March 2003.

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