Man launches guaranteed futures fund in Hong Kong

HONG KONG, June 2 (Reuters) - Man Group Plc (EMG.L) said on Monday it will launch its third futures-linked product in Hong Kong to carry a principal guarantee, as it looks to capitalise on demand for alternative investments amid uncertain markets.

The world's largest listed hedge fund firm said its Man AHL Guaranteed Futures 3 Ltd fund would be opened for subscription from June 2 to June 30.

Man executives said last year that the first version of the Man AHL Guaranteed Futures Ltd fund launched in 2006 in Hong Kong raised $52 million. It rolled out a second version of the fund last year.

The funds allocate to Man's high-profile AHL Diversified Programme, a computer-driven quantitative trading system that aims to capitalise on inefficiencies and persistent price trends in more than 140 futures and options markets.

AHL is one of the largest managed futures programmes in the world with about $20.9 billion in assets under management at the end of September. Man said the first product in the Hong Kong series had produced a total return of 28.8 percent since its launch in October, 2006.

But the trading system has at times shown itself to be vulnerable to sudden shifts in trends, falling 8.2 percent in one week last year amid a tumble in global stock markets.

The product is authorised by Hong Kong regulators, meaning it can target retail investors, who can invest as little as US$5,000. (Reporting by Jeffrey Hodgson; Editing by Anne Marie Roantree)