Man hopes the new product will raise even more, says Giselle Lee, Hong Kong-based head of sales at Man Investments, citing strong distributor demand – 19 banks will be distributing the product, up from 15 for the first issue.
“[The August product] launch did not deplete sales of our open-ended product in Hong Kong,” says Lee, “so we knew there was retail demand out there that was untapped.”
Like its predecessor, the new offering has a capital guarantee from HSBC of at least 90% of the initial investment on maturity, and a profit lock-in feature means the guarantee could rise to 100%. For example, if the product makes a net trading profit of 10%, half of that will be locked in and the guarantee will rise by 5%, says Lee.
Man has set the initial guarantee lower because it wants to retain greater potential upside for the investor, says Lee.
London-based AHL – on whose funds the product is based – is one of Man’s core fund managers and exclusively uses quantitative, or algorithmic, computer trading models to manage its investments. AHL has $18.8 billion in assets under management and has a track record stretching back to 1983.
Man Investments launched its first open-ended, Hong Kong-authorised futures fund, Man AHL Diversified Futures, in May 1998. As of April 30, 2007, that product had delivered an annualised return of 12.9%.