Man RMF Multi-Style Series 2
Capital-protected hedge fund
Growth by investing in managed futures, relative value, event driven equity hedge and global macro strategies
Lump sum $50,000, euros 50,000
50% managed futures, 23% relative value, 13% event driven,
7% equity hedge, 7% global macro
Place of registration:
Guarantee: Original capital returned in full at end of term regardless of underlying investments
13%-15% growth a year
October 4, 2004
Annual up to 1%,
10% performance fee
Commission: Subject to negotiation
Tel: 020 7144 2000
The Man RMF Multi-Style Series 2 is designed to perform independently of bond and equity markets by investing in a range of hedge fund strategies.
Chase de Vere Financial Solutions research manager Justine Fearns points out that the first tranche of this product was relatively well received by the IFA community.
She feels the product can offer peace of mind and that the fund of hedge funds structure will ensure there is a large degree of diversity. For investors who are investment savvy, Fearns thinks access to a hedge fund with tax chargeable to CGT is a plus..
While Fearns likes the simple bullet pointed, simple product presentation, she is concerned that it may be too simple. “We want to make sure people fully understand what is happening to their money,” she says.
Looking at the charging structure Fearns says: “Like other products with guarantees and protection built in, the charges are implicit. We're happy with this and I think most investors are. There is clearly no fit from a transparency perspective but this product is not billed to meet those requirements.”
However, on the down side Fearns says: “As hedge funds tend to have a negative correlation to standard asset classes, it begs the question of whether guarantees are needed on hedge funds. Are we just adding cost to a product that, if blended properly with other assets, doesn't need a guarantee.”
“I have a suspicion that normally the answer is yes. However, what Man and Close have been able to do in applying the guarantee is gear the investment into the fund and chase a higher level of return. With these additional risks in place, it felt it was prudent to guarantee the product and that the additional cost will be negated by the expected returns.”
Suitability to market: Average
Investment strategy: Average