Man Investment Products, an international alternative investment manager, is to launch its latest capital guaranteed structured product on Monday, August 26. Man IP 220 Series 4 Ltd is the first product offered by Man to guarantee investors the return of at least 120 percent of their initial investment at maturity.
This enhanced level of principal protection will take the form of Capital Guarantees provided by Lloyds TSB Bank plc. Series 4, which will be available in both US$-Class and Euro-Class Bonds, targets medium-term annualized growth of around 17-18 percent for each Class of Bond while aiming to restrict volatility to around 14-15 percent.
The Man IP 220 concept has proved to be one of Man's most successful product structures, according to a company press release. The original Man IP 220 product has achieved an annualized net return of 18.8 percent since inception in December 1996.
Like its predecessors, Series 4 provides investors with access to two of Man's most successful investment approaches, the Man-AHL Diversified Program and the Man-Glenwood Portfolio. What distinguishes Series 4 from the previous Man-IP 220 products is a unique principal protection arrangement.
Series 4 will be the first product launched by Man to offer investors the return of at least 120 percent of their initial investment upon maturity—November 13, 2013, in respect of the US$-Class Bonds and November 30, 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 original 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 plc3.
The Guarantor, Lloyds TSB Bank plc, is the only major shareholder owned bank in the world with a ‘triple A' rating. It is part of Lloyds TSB Group plc, a UK based financial services group which offers banking and financial services in the UK and overseas. With over 81,000 employees worldwide, the Group’s network covering the Americas, New Zealand and Europe with over 2,300 branches across the UK offering a full range of banking and financial services to over 16 million customers.
“The innovation of a capital guarantee arrangement that provides for the return 120 percent 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,” said Antoine Massad, Associate Director and Head of Middle East and Asia for Man.
Man IP 220 Series 4 Ltd will be available to investors from August 26 to October 4, 2002 with a possible extension to the offer period. Man Investment Products is part of Man Group plc, an 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 Investment Products is part of Man Group plc and currently manages around $21 billion for institutions and private investors worldwide. It is a global business with offices in Bahrain, Chicago, Dubai, Hong Kong, London, Montevideo, Tokyo and Switzerland and has launched more than 200 alternative investment products worldwide. — (menareport.com)
© 2002 Mena Report (www.menareport.com)
