Targeting Risk - US Disclaimer

This material was prepared by AHL Partners LLP (the “Investment Manager”), The investment manager is registered as an investment manager with the U.S. Securities and Exchange Commission (SEC). The investment manager is also registered as a commodity pool operator and commodity trading advisor registered with the Commodity Futures Trading Commission (“CFTC”) and is a member of the National Futures Association (“NFA”). The material is distributed by Man Investments, Inc. ("Man Investments") which is registered as a broker/dealer with the SEC and is a member of the Financial Industry Regulatory Authority ("FINRA") and the Securities Investor Protection Corporation ("SIPC"). The registrations and memberships described in the preceding sentences in no way implies a certain level of skill or training, or that the CFTC, SEC, NFA, FINRA or SIPC have endorsed any of the referenced entities to provide any of the services discussed herein. Man Investments and the Investment Manager are members the group of entities affiliated with Man Group plc. In the US, Man Investments Inc. can be contacted at 452 Fifth Avenue, 27th floor, New York, NY 10018, Telephone: (212) 649-6600.

The information in this material is for illustration and discussion purposes only. It is not intended to be, nor should it be construed or used as, investment, tax or legal advice, any recommendation or opinion regarding the appropriateness or suitability of any investment or strategy, or an offer to sell, or a solicitation of an offer to buy, an interest in any security, including an interest in any private funds or pools, or any other investment product, managed account or other investment vehicle (each, an “Investment Product”) advised by the Investment Manager or any of its affiliates. This material is intended to describe the investment strategy discussed herein for the recipient’s consideration to establish an Investment Product. No specific investment vehicle or investment product is being offered herein.

Any statements regarding market events, future events or other similar statements constitute only subjective views, are based upon expectations or beliefs, should not be relied on, are subject to change due to a variety of factors, including fluctuating market conditions, and involve inherent risks and uncertainties, both general and specific, many of which cannot be predicted or quantified and are beyond a Fund’s control. Future evidence and actual results could differ materially from those set forth in, contemplated by, or underlying these statements. In light of these risks and uncertainties, there can be no assurance that these statements are now or will prove to be accurate or complete in any way. No representation is made that a Fund’s investment process or investment objectives will or are likely to be successful or achieved.

PAST PERFORMANCE IS NO INDICATION OR GUARANTEE OF FUTURE PERFORMANCE.

The information presented herein is in outline form only and is qualified in its entirety by the confidential offering documents (“Offering Documents”) of the Fund. There are risks inherent in privately-offered investment vehicles. The Offering Documents contain important information concerning risk factors, including a more complete description of the risks and other material aspects of the investment adviser’s investment program and should be read carefully before any decision to invest is made. By accepting receipt of this document, you agree not to duplicate or furnish copies of this document to persons other than your investment and tax advisers, accountants or legal counsel and agree to return it or destroy it at the request of Man Investments Inc. Certain of the private investment funds and products mentioned in these documents are not available to US investors.

All investments involve risks including the potential for loss of principal. No representation is made that a Fund’s risk management, investment process, trading performance or investment objectives will or are likely to be achieved or successful or that any Fund or underlying investment will make any profit or will not sustain losses. Portfolio or return targets or objectives are used for illustration, measurement or comparison purposes and only as an aid or guideline for prospective investors to evaluate a particular investment program’s investment strategies and accompanying information. Such targets or objectives reflect subjective determinations by a Fund’s investment manager based on a variety of factors and should not be relied upon as an indication of actual or future performance.

The Investment Manager relies on proprietary data and quantitative models in addition to data supplied by third parties (collectively, “Models and Data”) to make investment decisions. Models and Data are known to have errors, omissions, imperfections and may malfunction (collectively, “System Events”). System Events may have a material adverse effect on the funds and/or strategies managed by the Investment Manager that rely on Models and Data. Such funds and/or strategies bear the risks associated with their reliance on Models and Data including that they bear all losses related to System Events so long as such System Events do not arise from a breach of the Investment Manager’s relevant standard of care with respect to such.

Benchmarks and financial indices are shown for illustrative purposes only, may not be available for direct investment, are unmanaged, assume reinvestment of income, do not reflect the impact of any management incentive fees and have limitations when used for comparison or other purposes because they may have different volatility or other material characteristics (such as number and types of instruments). A Fund’s investments are not restricted to the instruments composing any one index. Certain information is based on data provided by third-party sources and, although believed to be reliable, has not been independently verified and its accuracy or completeness cannot be guaranteed.

This material contains certain performance and portfolio information, as indicated, which does not or may not reflect actual accounts and therefore is hypothetical. These hypothetical portfolios have been constructed using unmanaged financial indices to represent certain assets classes and are intended solely to illustrate the potential impact of adding to such portfolios a hedge fund component, as described. No representation is made about the overall hypothetical portfolios or their suitability or potential benefits for any client or investor and no advice or recommendation is given with respect to such hypothetical portfolios, which are not intended to be managed by any Man Investments related entity and are included for illustration purposes only.

Unless otherwise indicated, performance results are net of applicable fees and expenses and presume reinvestment of income. No representation is made that a Fund’s risk management, investment process, trading performance or investment objectives will or are likely to be achieved or successful or that any Fund or underlying investment will make any profit or will not sustain losses. This material is accompanied by important notes, which must be read carefully.

Certain risk analytics referenced in or underlying this report are based on analyses that required or will require utilization by Man of estimated and historical information. There can be no guarantee as to the accuracy of such analyses in generating such analytics.

The “Value At Risk” (VaR) analysis is a risk analytic that was generated by a parametric VaR calculation that employs the historic monthly returns for the specified period. Portfolio VaR represents an analysis based on the historical performance of the referenced account which is calculated net of fees and expenses, and reflects the actual performance of the account during the reference periods, assuming reinvestment of earnings. Such account performance information is based on summaries and estimates provided by underlying funds and/ or other Man sources, and all such information since the most recent annual audit of the referenced account is unaudited and subject to change.

This material is intended only for institutional investors, investment professionals, market counterparties or intermediate customers and has been furnished upon request, solely for your information and may not be reproduced or otherwise disseminated in whole or in part without our prior written consent. Distribution of this material and the offer of an Investment Product may be restricted in certain jurisdictions. This material is not intended for distribution or use by any person or entity in any jurisdiction or country where such distribution or use would be contrary to local law or regulation. This information is confidential, is the property of the Investment Manager and Man Investments, is intended only for use by recipient(s) and their authorized agent(s) and representative(s) and may not be reproduced or distributed to any other person without prior written consent.

Information for Canadian Investors

No securities commission or similar authority in Canada has reviewed or in any way passed upon this document or the merits of the securities described herein and any representation to the contrary is an offence. This is not the final offering memorandum but rather a preliminary description of the investment opportunity which has been prepared solely for the benefit of accredited investors who are also permitted clients under applicable Canadian securities laws. If and when the final offering memorandum is prepared, only accredited investors (who are, where applicable, also permitted clients) entitled under applicable Canadian securities laws in the relevant Canadian offering jurisdictions will be entitled to participate in the offering.

Securities legislation in certain of the Canadian jurisdictions provides purchasers pursuant to an offering memorandum with a remedy for damages or rescission, or both, in addition to any other rights they may have at law, where the offering memorandum and any amendment to it contains a “misrepresentation” . Where used herein, “misrepresentation” means an untrue statement of a material fact or an omission to state a material fact that is required to be stated or that is necessary to make any statement not misleading in light of the circumstances in which it was made. These remedies, or notice with respect to these remedies, must be exercised or delivered, as the case may be, by the purchaser within the time limits prescribed by applicable securities legislation.

Ontario

Section 130.1 of the Securities Act (Ontario) provides that every purchaser of securities pursuant to an offering memorandum shall have a statutory right of action for damages or rescission against the issuer in the event that the offering memorandum contains a misrepresentation. A purchaser who purchases securities offered by an offering memorandum during the period of distribution has, without regard to whether the purchaser relied upon the misrepresentation, a right of action for damages or, alternatively, while still the owner of the securities, for rescission against the issuer and the selling security holders, provided that:

(a) if the purchaser exercises its right of rescission, it shall cease to have a right of action for damages against the issuer;
(b) the issuer will not be liable if they prove that the purchaser purchased the securities with knowledge of the misrepresentation;
(c) the issuer will not be liable for all or any portion of damages that it proves do not represent the depreciation in value of the securities as a result of the misrepresentation relied upon; and
(d) in no case shall the amount recoverable exceed the price at which the securities were offered.
Section 138 of the Securities Act (Ontario) provides that no action shall be commenced to enforce these rights more than:
(a) in the case of an action for rescission, 180 days from the day of the transaction that gave rise to the cause of action; or
(b) in the case of an action for damages, the earlier of:
(i) 180 days from the day that the purchaser first had knowledge of the facts giving rise to the cause of action; or
(ii) three years from the day of the transaction that gave rise to the cause of action.
The rights referred to in section 130.1 of the Securities Act (Ontario) do not apply in respect of an offering memorandum delivered to a prospective purchaser in connection with a distribution made in reliance on the exemption from the prospectus requirement in section 2.3 of National Instrument 45-106 Prospectus and Registration Exemptions (the “accredited investor” exemption) if the prospective purchaser is:
(a) a Canadian financial institution or a Schedule III bank,
(b) the Business Development Bank of Canada incorporated under the Business Development Bank of Canada Act (Canada), or
(c) a subsidiary of any person referred to in paragraphs (a) and (b), if the person owns all of the voting securities of the subsidiary, except the voting securities required by law to be owned by directors of that subsidiary. The foregoing summary is subject to the express provisions of the Securities Act (Ontario) and the regulations, rules and instruments thereunder, and reference is made to the complete text of such provisions contained therein. Such provisions may contain limitations and statutory defenses on which the issuer may rely. The enforceability of these rights may be limited.

Similar rights may be available to investors resident in other Canadian jurisdictions under local provincial securities laws.

The issuer and related entities, their affiliates, and their respective shareholders, members, partners, managers, directors, officers, principals, employees and agents, are not registered with or licensed by any securities regulatory authority in Canada and, accordingly, the protections available to clients of a registered adviser, dealer or investment fund manager will not be available to purchasers in Canada.

Man Investments, Inc. (“MII”) will be relying on the international dealer exemption pursuant to subsection 8.18(2) of NI 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations in Ontario. Please note that:
I. MII is not registered in Ontario to trade in securities;
II. MII’s head office or principal place of business is located in the State of New York, U.S.A.;
III. all or substantially all of MII’s assets may be situated outside of Canada;
IV. there may be difficulty enforcing legal rights against MII because of the above;
V. the name and address of MII’s agent for service of process in Ontario is 152928 Canada Inc., c/o Stikeman Elliott LLP, 5300 Commerce Court West, 199 Bay Street, Toronto, Ontario M5L 1B9.

Please note that MII’s agent for service of process is solely for purposes of serving upon it notices, pleadings, subpoenas, summons or other processes in actions, investigations or administrative, criminal, quasi-criminal or other proceedings arising out of or relating to or concerning MII’s activities in Ontario.

Alternative Investment Risks and Other Disclosures

The investments described herein may be private investment funds, registered funds, and/or managed accounts and may utilize “Alternative Investment Strategies”. Alternative investment Strategies, depending upon their investment objectives may invest and trade in many different markets, strategies and instruments (including securities, non-securities and derivatives) and are NOT subject to the same regulatory requirements as mutual funds, including mutual fund requirements to provide certain periodic and standardized pricing and valuation information to investors. There are substantial risks in investing in an Alternative Investment. The Offering Documents contain important information concerning risk factors, including a more comprehensive description of the risks and other material aspects of the investment, and should be read carefully before any decision to invest is made. You should not rely in any way on this summary.

You should note carefully the following:

An Alternative Investment represents a speculative investment and involves a high degree of risk. Investors must have the financial ability, sophistication/experience and willingness to bear the risks of an investment in an Alternative Investment. An investor could lose all or a substantial portion of his/her/its investment.

An investment in an Alternative Investment should be discretionary capital set aside strictly for speculative purposes.

An investment in an Alternative Investment is not suitable for all investors. Only qualified eligible investors may invest in an Alternative Investment.

An Alternative Investment’s offering documents may not have been reviewed or approved by federal or state regulators, and it may contain privately placed interests which are not federally or state registered.

Some Alternative Investments may be illiquid and there may be significant restrictions on transferring or redeeming interests in an Alternative Investment. There may be no secondary market for an investor’s investment in an Alternative Investment.

Certain portfolio assets may be illiquid and without a readily ascertainable market value. Since the value assigned to portfolio investments affects a manager’s or advisor’s compensation, the manager’s or advisor’s involvement in the valuation process creates a potential conflict of interest. The value assigned to such portfolio investments may differ from the value an Alternative Investment is able to realize.

An Alternative Investment may have little or no operating history or performance and may use performance which may not reflect actual trading of the Alternative Investment and should be reviewed carefully. Investors should not place undue reliance on hypothetical, pro forma or predecessor performance.

An Alternative Investment’s manager or advisor has total trading authority over an Alternative Investment. The death or disability of the manager or advisor, or their departure, may have a material adverse effect on an Alternative Investment.

An Alternative Investment may use a single advisor or employ a single strategy, which could mean a lack of diversification and higher risk. An Alternative Investment’s performance may be volatile.

An Alternative Investment may involve a complex tax structure, which should be reviewed carefully, and may involve structures or strategies that may cause delays in important tax information being sent to investors.

An Alternative Investment’s fees and expenses which may be substantial regardless of any positive return may offset such Alternative Investment’s trading profits. If an Alternative Investment’s investments are not successful, these payments and expenses may, over a period of time, deplete the net asset value of an Alternative Investment. An Alternative Investment and its managers/advisors may be subject to various conflicts of interest.

An alternative investment strategy or technique aimed to reduce the risk of loss which may not be successful.

Alternative investments may not be required to provide periodic pricing or valuation information to investors.

Volatile markets – Certain strategies may trade in futures which is a speculative activity. Futures prices may be highly volatile. Market prices are difficult to predict and are influenced by many factors, including: changes in interest rates, weather conditions, government intervention and changes in national and international political and economic events. Please refer to the Confidential Private Offering Memorandum for a more comprehensive description of volatility factors.

Tax risks – Investors in hedge funds such as the Fund are subject to pass-through tax treatment of their investment. Since profits generally will be reinvested in the Fund rather than distributed to Limited Partners, investors may incur tax liabilities during a year in which they have not received a distribution of any cash from the fund. In addition, it is likely that the general partner will not be able to prepare its tax returns in time for investors to file their returns without requesting an extension of time to file.

Limited liquidity – Your ability to redeem (liquidate) your Units or certain portfolio assets may be limited and subject to certain restrictions and conditions under the Fund or Investment Agreement. No secondary public market for the sale of certain assets may exist.

Concentration – A Fund may use a single advisor or employ a single strategy, which could mean a lack of diversification and higher risk.

An alternative investment strategy may employ leverage. The more leverage used, the more likely a substantial change in value may occur, either up or down. The strategy may trade futures or may trade on foreign exchanges, where the risk of loss may be substantial.

The above summary is not a complete list of the risks, tax considerations and other important disclosures involved in investing in an alternative investment strategy and is subject to the more complete disclosures in the strategy’s offering documents, which must be reviewed carefully prior to making an investment. For a copy of the Offering Documents, please contact your Man sales representative at ussales@man.com or at the number listed below.

Man Investments
452 Fifth Avenue, 27th Floor
New York, NY 10018 USA
Tel +[212] 649-6700
Man Investments Inc., Member FINRA and SIPC