Man Group today launched its first guaranteed futures and options fund in Hong Kong to tap rising demand from retail investors for alternative investment products.

The five-year Man AHL Guaranteed Futures fund carries a 90% guarantee, which will rise to 100% with strong performance, and will generate returns via a quantitative trading system allocating to more than 100 international futures and options markets.

"Over the five year time horizon, we fully expect to deliver double digit returns," said Asia Pacific managing director Matthew Dillon at a press briefing in Hong Kong.

The product, which is authorised by Hong Kong regulators, has a retail minimum of US$5,000. It has a 3% management fee and a 20% performance fee. The guarantee is provided by HSBC. The product closes on 28 September.

Man's AHL division had $16.1bn in assets under management as of 30 June.

Meanwhile, Man has launched the capital-guaranteed Man MGS Access in Saudi Arabia. The product, which is available in US dollars and euros, targets an annualised return of 13-16% for the dollar class bond and 11-14% for the euro class bond. The minimum holding is €/$50,000 bonds. Subscription closes on 3 October.