KEY POINTS:
What is it called and what sort of savings product is it?
Man OM-IP 220 2008 is a capital protected alternative asset investment.
Who is the company behind it?
The fund is promoted by Australian firm Man Investments, which is a wholly owned subsidiary of UK-based
Man Group plc.
The money raised in the offer is invested into two complementary investments. One is the AHL Diversified Program - a systematic computer driven program managed by Man Investments in London. The other is the Glenwood Portfolio. This gives investors access to more than 70 specialised international fund managers that invest across six alternative fund styles including commodity and macro, event driven, equity hedge, variable equity, distressed and credit and relative value. The other party involved in the offer is ASB Bank's parent company, the Commonwealth Bank of Australia, which provides a capital guarantee.
Who is the target market?
Anyone prepared to investment money in risky assets at the moment.
What return does it offer?
Man no longer talks about projected returns. However, of the 12 previous OM-IP 220 funds the compound annual return ranges from 10.4 per cent to 17.5 per cent. Officially the fund aims to generate "medium to long term capital growth in both rising and falling markets."
When was it launched?
The offer was launched on September 29 and closes on November 28.
What other products is it like or is it competing with?
These funds don't have any direct competitors as such.
Is it long term, short term or medium term?
This is a longer term investment, maturing on December 31, 2018. However, shares can be sold or redeemed on a monthly basis.
What is the unique selling point?
The OM-IP funds have been popular with investors in Australia and New Zealand as they give investors access to funds not easily available to retail investors, and there is the capital protection.
How strong a stomach do you need for it?
This is one of those unusual funds that offers the safety of a bank-backed capital guarantee, while also investing in high risk alternative assets. In reality it is a high-risk investment.
What's the hitch?
You are investing into hedge funds which, in the current market state, are under a huge amount of survival pressure.