The first Man AP product

A successful investment strategy

Man-AP Stratum Ltd, the first Man AP investment product, demonstrates how a combination of AHL and the MGS style portfolios has performed in both rising and falling markets.

Performance of Man-AP Stratum Ltd 22 October 1999 to 31 May 2007

	Man-Ap Stratum	World Stocks	World Bonds
Total Return	169.6%	28.1%	48.9%
Annualised return	13.8%	3.3%	5.3%
Annualised volatility	13.6%	13.5%	2.7%
Sharpe ratio	0.76	0.04	0.62
Worst drawdown	-14.2%	-47.9%	-2.7%
Correlation to Man-AP Stratum Ltd	1.00	-0.28	0.44

Man AP Spectrum Series 2 Ltd is also making a significant allocation to the Bayswater Macro Programme. Although Man AP Spectrum Series 2 Ltd shares significant risk and, potentially, return characteristics with Man-AP Stratum Ltd, the underlying portfolios differ.

Benefits of alternative investments in uncertain times

In an atmosphere of rising interest rates and uncertainty about how long equity markets returns will continue, an informed investor may seek portfolio diversification and capital protection. Alternative investments, like Man AP Spectrum Series 2 Ltd, can provide this by targeting absolute returns. Its outlook is thus not solely dependent on the continued growth of global equity and bond markets.

Improving the risk/return trade-off

A 20% allocation to Man-AP Stratum Ltd within a traditional portfolio consisting of world stocks, world bonds and cash would have improved total returns by 22.0 % and reduced risk over the period analysed.

Addition of Man-AP Stratum Ltd to a traditional portfolio 22 October 1999 to 31 May 2007

	Traditional portfolio	Enhanced portfolio
Total return	40.3%	62.3%
Annualised return	4.5%	6.5%
Annualised volatility	5.7%	4.8%
Sharpe Ratio	0.18	0.60
Worst drawdown	-17.4%	-7.0%

The investment experience behind the offers

Man Group plc
Originally established in 1783, the Man Group is today one of the largest global providers of alternative investment products and solutions.

• Market capitalisation of USD 20.5 billion7
• Listed on the London Stock Exchange
• Constituent of the FTSE 100 Index

Man Investments

• Asset management division of Man Group pic, established in 1983
• One of the world's largest hedge fund providers
• More than USD 61billion under management

Credit Suisse International

• An indirect and wholly owned subsidiary of Credit Suisse Group
• Long-term debt is rated Aa1 by Moody's Investor Services Inc.
• AA-by Standard Poor's Rating Services

Key benefits

Performance
Two classes of bonds -USD and EUR, both targeting 9-11% mean annualised volatility.

• USD bonds target 13-16% mean annualised
• EUR bonds target 11-14% mean annualised returns

Targets investment exposure of around 150% of NAV

Security

100% capital guarantees from Credit Suisse International and a profit lock-in feature

Diversification

• Within the Man AP Spectrum Series 2 Ltd portfolio
• By adding to an investment portfolio of traditional assets -potential to reduce overall portfolio risk and enhance returns

Key facts

Offer period : 20 August 2007 to 1 October 2007

Face value of the bonds :USD 1lEUR 1 per bond

Minimum subscription

USD : bonds USD 50,000
EEA investors: EUR 50,000 equivalent as advised by Man AP Spectrum Series 2 Ltd. Hong Kong investors: USD 65,000

EUR : bonds EUR 50,000
Hong Kong investors: USD 65,000 equivalent as advised by Man AP Spectrum Series 2 Ltd.

If investing in both classes, the minimum subscription amounts above still apply to your overall investment but you must subscribe for at least 20,000 bonds in each class (this does not apply to EEA/Hong Kong investors).

Minimum redemption : 20,000 bonds

Minimum holding : 50,000 bonds

Maturity date : USD bonds: 30 November 2018 EUR bonds: 30 November 2019

Sales charge : none

Dealing frequency : monthly

Monthly redemptions subject to the following fees

Redemption on or between	Redemption fee
issue date & 31 Oct 2009	4% of NAV per bond
1 Nov 2009 & 31 Oct 2011	3% of NAV per bond
1 Nov 2011 & 31 Oct 2013	1% of NAV per bond
on or after 1 Nov 2013	no redemption fee

Reporting
Investors can access prices through the following media:

• www.maninvestments.com
• Financial Times and International Herald Tribune
• Bloomberg, Reuters, Standard & Poor's and Telekurs electronic data services

	USD bonds	EUR bonds
Common code	30438124	30438434
ISIN code	XS0304381246	XS0304384349
Valoren Number	3178649	3178790