MF Global to Launch Managed Futures Products
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Company Leverages Experience and Global Network to Meet Client Demand for Access to Rapidly Growing Asset Class NEW YORK--(Business Wire)-- MF Global Ltd. (NYSE:MF), a leading intermediary offering customized solutions in global cash and derivatives markets, today launched its Alternative Investment Strategies (AIS) division. The AIS group provides qualified retail and institutional investors with access to the fast-growing managed futures sector through a direct asset placement program of managed accounts. In addition to the direct access placement program, the AIS division will enter the fund management business in the U.S. "Through this natural extension of our core business, we are leveraging our U.S. distribution network and decades of leadership in futures to broaden the services and products we offer our clients," said Bernard W. Dan, chief executive officer, MF Global. "This initiative is a perfect example of how we continue to expand our offering to better serve our client needs while at the same time diversifying our revenue streams by introducing a new, fee-based income source." Managed futures traders and global macro traders invest in a broad range of instruments which can include traditional commodities, currencies and government securities. This alternative investment sector has experienced significant growth over the last five years, with assets under management growing approximately 200 percent1, even through the 2008 market downturn. In 2008, commodity trading advisors (CTAs) reported an average cumulative return of 17 percent, net of fees and expenses.2 MF Global`s professional brokers have already begun introducing clients to a pre-screened, select set of CTAs and global macro traders. A key focus of the asset placement group is to provide clients with a diversified investment strategy. "I think most sophisticated investors would agree that a properly diversified portfolio has exposure to managed futures, which have the potential to provide superior, risk-adjusted returns that are, in most cases, uncorrelated with traditional equity markets," said Adam T. Rochlin, senior vice president and head of MF Global`s AIS division. "We`re in a unique position to educate our clients and introduce them to professional managers who are otherwise very difficult to identify and access on their own." MF Global employs a multi-layer due diligence process to discover and screen managers for its asset placement program that includes third-party validation. "We have spent considerable time conducting due diligence in order to identify what we think are a highly unique set of experienced managers worldwide," said Mr. Rochlin. "Our goal is to enable our clients to gain exposure to these managers, and provide them with position transparency and liquidity." About MF Global MF Global Ltd. (NYSE:MF), is a leading intermediary offering customized solutions in global cash and derivatives markets. It provides execution and clearing services for exchange-traded and over-the-counter derivative products as well as for non-derivative foreign exchange products and securities in the cash market. MF Global is uniquely diversified across products, trading markets, customers and regions. Its worldwide client base includes financial institutions, industrial groups, private investment (including hedge) funds and other asset managers as well as professional traders and private/retail clients. MF Global operates in 14 countries on more than 70 exchanges, providing access to some of the largest financial markets in the world and is the leader by volume on many of these markets. For more information, please visit www.mfglobal.com. Trading involves risk of loss and is not suitable for everyone. Past performance is not indicative of future results. Forward-Looking Statement SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: Forward-looking statements in this press release, including statements relating to the Company`s future revenues and earnings, plans, strategies, objectives, expectations and intentions, are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements are inherently subject to risks and uncertainties, many of which cannot be predicted with accuracy, and some of which might not be anticipated. We caution you not to place undue reliance on these forward-looking statements. We refer you to the Company`s latest Annual Report on Form 10-K and Quarterly Report on Form 10-Q on file with the Securities and Exchange Commission (SEC) for a description of the risks and uncertainties the Company faces. This press release includes certain non-GAAP financial measures, as defined under SEC rules. A reconciliation of these measures is included in the financial information later in this release, which is available on the Company`s website at www.mfglobal.com. 1 Barclay Hedge and Casey Quirk, April 2009 Hedge Fund White paper. 2 Average of cumulative performances reported by Barclay Hedge CTA Index and the CISDM CTA Asset Weighted and Equal Weighted Indices. MF Global Ltd. Investor: Lisa Kampf, +1 212-589-6592 lkampf@mfglobal.com or Media: Diana DeSocio, +1 212-589-6282 ddesocio@mfglobal.com Copyright Business Wire 2009
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