The fund is a multi-manager multi-strategy fund of hedge funds which is available through bond classes with a capital guarantee and share classes which pay dividends but have no capital protection.
There are three bond classes which mature on November 30, 2017. Dollar denominated bonds have a target return of 11-14 per cent a year, euro-denomiated bonds have a target return of 10-13 per cent a tear and Swiss franc denominated bonds aim for a 6-9 per cent return. The capital guarantee is provided by Citibank and ensures investors come away with at least their original capital.
There is also a profit lock-in feature which comes into play if the dollar and euro-denomiated bond classes reach 150 per cent of their net asset value and the Swiss franc denominated bonds reach 120 per cent of their net asset value. This potentially increases the amount of the guarantee at maturity.
There are also three share classes. Dollar denominated shares offer a 12-15 per cent return a year, euro-denominated bonds provide a 11-14 per cent return and Swiss franc denominated shares aim for 6-8 per cent. Investors will also get an annual fixed dividend payment of 4 per cent of the purchase price of their shares for the first four years, after which an annual discretionary performance-related dividend will be considered.
The fund spans arbitrage, directional, equity hedge, long and short equity and managed futures, but has a particular focus on arbitrage and managed futures. By doing this, Man Investments intends to build a robust portfolio that is not over-dependent on any one manager or strategy.
High-net-worth and institutional investors may find this fund appealing as the bond classes cater for those with a lower risk profile, while the share classes cater for those who feel that it is not worth sacrificing dividends for the guarantee.