Man Investments and Dexion Capital Group have launched a Ucits III trend following product, Man AHL Diversity.

To be managed by AHL, a division of Man Investments, the product will exploit persistent trends and other market inefficiencies in a systematic way using highly liquid futures markets. The funds are designed to perform whether prices trend up or down so returns tend to be uncorrelated with traditional stock or bond markets.

Man AHL Diversity is designed as a portfolio diversifier, aimed at sophisticated UK investors. Investors will be able to access the sterling denominated product with a minimum initial investment of £100 when the product launches in October.

It has exposure to over 90 global markets and 29 international exchanges, following trends from currencies and interest rates to agricultural assets and metals.

Based on past data and adjusted for structure, fees and costs, Man AHL Diversity delivered annualised returns of over 14% during the past 14 years.

Dealing frequency of the product will be weekly with a double-digit targeted return and an annualised volatility of around 11%.

The EU created undertakings for collective investments in transferable securities (Ucits) product was an attempt to create a level playing field for funds established in different member states and to ensure investors were protected by a single European regulator. Ucits III funds can be sold anywhere in the EU and are marketed through a simple prospectus. These funds cannot expose an investor to a loss greater than the original investment and must be priced accurately, regularly and independently. In addition, Ucits III funds have to report comprehensive information on the portfolio and underlying securities.