Man Investments launches Man Global Strategies Diversified Series 2 Ltd

Series 2 offers investors alternative ways to access the Man Global Strategies Diversified portfolio in the form of USD/EUR/CHF class capital bonds and USD/EUR class income bonds.

Series 2 aims to generate consistent returns for a conservative level of volatility by incorporating appropriately weighted exposures to hedge fund style portfolios constructed and managed by Man Global Strategies. The USD/EUR capital bonds and USD/EUR income bonds will target annualised returns of around 13-15% for an annualised volatility of 7-8%1 while the CHF capital bonds will target annualised returns of around 12-14% for an annualised volatility of around 7-8%1. The Series 2 portfolio includes allocations to arbitrage, directional, equity hedge, long/short equities and managed futures style portfolios, providing exposure to their distinct risk and return characteristics and complementary profile strengths. Each style portfolio in turn allocates to an extensive range of managers, providing an additional level of diversification.

Series 2 is offered in USD, EUR and CHF capital bonds and USD and EUR income bonds. The capital bonds provide the security of 100% capital guarantees and a profit lock-in feature. The income bonds will also offer 100% capital guarantees, and a guaranteed coupon equivalent to 2.5% of the face value of the bonds will be paid for the first two years. Following the last guaranteed coupon payment, a discretionary annual performance-linked coupon may be paid on the income bonds.

Man Global Strategies constructs and manages hedge style and multi-strategy portfolios for Man Investments, including many of the portfolios for Man Investments' structured products. The investment professionals on the Man Global Strategies investment committee possess an average of 16 years of relevant investment experience. They have refined their multi-strategy asset allocation skills since 1996, when the Man-IP 220 Limited structured product was developed. Other successful product families have followed which offer different target risk and return ranges over the medium-term. Man Global Strategies also creates portfolios for banks and other institutional partners operating in local markets around the world.

"Man Global Strategies has been responsible for the construction and management of numerous successful Man Investments product portfolios," says Antoine Massad, Head of Middle East and Asia, Man Investments. "Series 2 is expected to appeal to a wide range of investors, offering alternative ways to access the impressive Man Global Strategies Diversified portfolio."

Series 2 incorporates a principal protection structure that guarantees investors the return of 100% of their initial investment at maturity. In the case of the capital bonds, a profit lock-in feature which, subject to trading performance, has the potential to elevate the level of the capital bonds guarantees at maturity by locking-in a portion of net new trading profits following periods of sustained profitability. The operation of both the guarantees and the profit lock-in feature are subject to the terms and conditions of the capital guarantees provided by UBS AG, London Branch.2

UBS AG and subsidiaries ('UBS') is one of the world's leading financial firms. UBS's global businesses include: Wealth Management & Business Banking, the world's largest wealth manager by invested assets and the leading bank for corporate and institutional clients in Switzerland. With headquarters in Zurich and Basel, Switzerland, UBS operates in over 50 countries and from all major international centres. As of 31 December 2003, UBS had total invested assets of USD 1,782 billion, a market capitalisation of USD 77 billion and employed approximately 66,000 people. As at 31 December 2003, UBS had a credit rating for long term debt of Aa2 from Moody's and AA+ from Standard & Poor's.

Man Global Strategies Diversified Series 2 Ltd will be available to investors from 3 May to 14 June 2004 with a possible extension to the offer period.