FinanceAsia – Man Investments introduces a futures and options fund containing a guarantee feature, aiming at Hong Kong’s retail base.
The name Man AHL Guaranteed Futures will shortly be appearing in Hong Kong bank branches in an alternative products launch. Man Investments is pitching its new futures and options fund at Joe Public in Hong Kong, in a gambit that takes access to alternative products to the level of the high street punter.
The difference between this product and the higher octane Man AHL Diversified Futures is the existence of a principal guarantee with this new offering, which is intended to make the product user-friendly for the retail customer. The management of the underlying futures and options will be governed by a number of quant algorithms that will actively manage both the long and short side.
Actively managed futures and options are regarded as a bona fide hedge-fund strategy elsewhere in the world, but in Hong Kong such an investment mechanism does not require SFC (Securities and Futures Commission) approval and this product therefore is not treated as a hedge fund.
Man targets raising at least $10 million over the initial four-week subscription period, and the minimum investment will be $5,000. The management fee is 3%, and the performance fee is 20%.
