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Man peers over the hedge

Man Investment Products has unveiled Man multi-strategy series 3, a fund of hedge funds that is structured as a capital guaranteed bond.

The bond is based in Bermuda and investors can choose between dollar-denominated bonds, euro-denominated bonds or a mixture of both. They are guaranteed at least the return of their original capital and if the bond performs well, the guarantee will increase accordingly.

The bond will invest in a range of hedge funds from different managers that use different strategies. Long and short selling is the most popular strategy. Fund managers buy shares they think will go up in price and sell those they think will go down, with a view to buying them back when the value has fallen.

Managed futures invest in futures contracts so if, for example, the price of oil goes up, the fund manager will buy shares in oil. Market neutral involves trying to make a profit by buying and selling stocks within the same sectors, while arbitrage involves buying convertible bonds and selling the underlying investments short. Event driven strategies invest in companies undergoing events, like takeover bids or financial difficulties.

This product is likely to appeal to high-net-worth investors who are comfortable with high risks in return for potentially higher rewards. According to the latest report by independent performance analysts at the Allenbridge Group, the returns from hedge funds now stand at around 3.85 per cent, compared 21.5 per cent in 1999. However, despite this decline, they are still outperforming conventional funds like unit trusts and Oeics.


Royal & SunAlliance hopes that fund will become a mainstay

Royal & SunAlliance International is joining forces with Thames River Capital to provide a new fund for investors. The mainstay fund is a multi-manager fund of hedge funds aimed at the sophisticated offshore investor who still wants to invest in the stockmarket.Royal & SunAlliance International will be dealing with the administration of the fund, while […]

Hints on homebuying

Legal & General has published a free consumers&#39 guide to moving home.It explains issues such as the difference between freehold and leasehold, tenancy arrangements and the purpose of conveyancing. The guide also includes a section on the buying process from making an offer to completion.Mortgages are described and there is a section on insurance and […]

McLatchie to be MD at Aegon

Aegon Asset Management is set to appoint Colin McLatchie as its new managing director, replacing current boss Russell Hogan.McLatchie is chief operating officer at AAM and is thought to have won over Aegon bosses ahead of external candidates for the role.Hogan is stepping down as managing director in January to take up a theology course […]

View the pension landscape

Managing New Stakeholder Realities is a one-day conference held by Money Marketing looking at how to react to the marketing opportunities.Chaired by Bacon & Woodrow partner Kevin Wesbroom, the conference will look at how the pensions landscape has changed, forming alliances to promote brand strength and the experience of stakeholder so far.Speakers will include Profunds […]


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