Man builds its Man AP Product Family

Man AP Strategic Series 2 Ltd ('Series 2'), which will be available in both US$-Class and Euro-Class Bonds, targets medium-term annualised growth of around 14-16%1 for each Class of Bond while aiming to restrict volatility to around 10-11%1. Man Investment Products is part of Man Group plc, a leading international financial services business that is listed on the London Stock Exchange and is a constituent of the FTSE 100 index of leading shares.

The launch of Series 2 follows strong demand from institutional and private investors around the world for Man AP Strategic Series 1 Ltd, which was launched earlier this year, which has raised the equivalent of over US$280 million of client money.

Man AP Strategic raised over US$280 million in its two currency classes - Euros and US dollars. Man AP Strategic was a global offering, primarily aimed at private clients, based on the successful multi-strategy approach introduced in 1999 with the launch of Man AP Stratum Limited.

The Man AP Strategic products form part of the Man AP product family Man founded with the launch of Man-AP Stratum Limited towards the end of 1999. The defining feature of this product family is its conservative risk-adjusted target returns.

Series 2 will provide investors access to Man's successful managed futures programme, the Man-AHL Institutional Portfolio, as well as to complementary arbitrage and equity hedge styles implemented by a range of carefully selected advisers. By dovetailing these styles, Man AP Strategic Series 2 Ltd. offers the potential for robust performance and returns that display a lack of correlation to traditional stock and bond investments.

JPMorgan Chase Bank2 will undertake the role of Guarantor for the capital guarantee structure provided by Series 2. The terms of the agreement mean that JPMorgan Chase Bank guarantees the return of all initial investment capital when the Bonds reach maturity - 30 November 2013 - subject to the terms and conditions of the Guarantees. In addition, a profit lock-in feature allows for the 'locking-in' of a portion of net new trading profits following periods of sustained profitability for Series 2, meaning that the guarantee level may rise. The operation of this feature is subject to the discretion of the investment manager and the prior approval of JPMorgan Chase Bank.

As of 31 December 2001, JPMorgan Chase Bank had total assets of US$ 537.8 billion, total net loans of US$ 174.9 billion, total deposits of US$ 280.5 billion, and total stockholder's equity of US$ 33.3 billion.

'The successful launch of Man AP Strategic Series 1 Ltd has highlighted the demand for products that not only seek absolute returns, but place an increased emphasis on minimising the associated risks,' says Antoine Massad, Associate Director and Head of Middle East and Asia at Man Investment Products. 'The release of Man AP Strategic Series 2 Ltd is aimed at meeting this demand by offering investors another opportunity to invest in this impressive structured product.'

Man AP Strategic Series 2 Ltd will be available to investors from 6 May to 14 June 2002 with a possible extension to the offer period.


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