CMA stated that this new structured product has been launched in direct response to the insurance industry's challenge of addressing the funding crisis across Europe.

The Euro 135 million 15-year Guaranteed Note is linked to the Berklay Global Fund - a multi-strategy fund of hedge funds advised by CMA. The Note is issued and guaranteed by Société Générale and was specifically developed for European insurance institutions.

The fund's investment objective is to achieve low volatility capital appreciation over the medium term, while the Notes will deliver an annual yield of 2.4 per cent and guarantee the initial capital investment.

Sabby Mionis, a Partner of the Luxembourg-based group, said: "The 15-year maturity is significant since it confirms the insurance sector's longer term commitment to alternatives as an asset class."

Mr Mionis said: "This trend is set to continue as insurers and pension funds, in the face of short-term liabilities, will increasingly demand diversified alternative investment strategies that can combine fixed income with capital protection."

The new launch represents CMA's fifth structured product linked to a fund of hedge funds portfolio and underlines CMA's strategy of developing innovative and sophisticated structured finance solutions for institutional clients.

Background Note: Capital Management Advisors is an independent financial advisory group established in 1997 to assist high net-worth individuals, family groups and institutions in the management of their financial assets. The group specialises in the selection of both Traditional and Alternative investment managers. The Capital Management Advisors Group currently manages US$650 million in institutional and private client assets.