Man Investments Canada Corp. has partnered with CIBC to launch CIBC Man IP 220 Deposit Notes.

The deposit notes are linked to the value of a notional investment in a dedicated portfolio which is modelled upon the existing IP 220 Portfolio, a multi-manager, multi-strategy alternative investment portfolio that combines the strategies of the AHL Diversified Programme and the Glenwood Portfolio — two of Man’s most established investment strategies.

Along with the potential to reduce overall portfolio risk and enhance returns, the deposit notes also offer 100% principal protection provided by CIBC at maturity.

By combining exposure to AHL and Glenwood, investors gain exposure to a leading systematic, quantitative managed futures investment manager trading in more than 100 global markets, coupled with a diversified fund-of-funds portfolio of more than 60 hedge fund managers, Man Canada says.

AHL and Glenwood have historically displayed a low correlation both to each other and traditional markets resulting in the ability of the IP 220 Portfolio to historically produce positive returns that have been independent of the direction of equity and bond markets. The IP 220 Portfolio has a 10.5-year track record with annualized returns of 15.7% (net of fees).

“Recent and pronounced market volatility should, yet again, remind all investors that exposure to long-only investments may not fully achieve true portfolio diversification,” says Toreigh Stuart, CEO of Man Canada. “We are proud to make one of Man’s most successful investment programs available to a broad group of Canadian investors, and we believe there is a strong demand for this diversified investment approach.”

The offering period for investment in the deposit notes ends December 10. If held until maturity (a term of approximately 9.75 years), investors holding the notes will receive no less than their original capital of $100 per deposit note, guaranteed by CIBC.