Man Group records 7% increase in assets

Man Group records 7% increase in assets

Man Group, the specialist alternatives investment manager, has recorded a 7 per cent increase in its funds under management in the first three months of 2015.

In a trading statement for the quarter ending March 31 the company, which owns GLG, revealed its total assets had increased to $78.1bn (£50.5bn). Current funds under management, however, are estimated to have reached $82bn including $2.4bn relating to the acquisitions of NewSmith in February and BAML fund of funds.

The statement attributed $4.3bn of the increased assets to positive investment performance, with GLG’s range of alternative strategies adding $500m to the pot in the quarter.

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It added that the majority of GLG’s discretionary long only strategies also delivered positive performance, in particular the Japan CoreAlpha strategy, where the 12.2 per cent return contributed $1.6bn to funds under management.

That said, Man Group acknowledged the positive performance helped offset net outflows of $1.3bn in the quarter, with GLG’s long only strategies recording net outflows of $900m in the period.

The group stated: “Discretionary long only funds increased by $100m in the quarter to $16.1bn. Positive investment performance of $1.6bn was partially offset by net outflows of $900m and a negative foreign exchange (FX) impact of $600m.

“$800m of the $900m outflow in the period was from Japan CoreAlpha as a number of clients reviewed their asset allocations after the year end. $400m was from Ucits funds and $400m from two segregated individual client accounts.”

The results also noted the strength of the US dollar against both sterling and the euro had affected funds under management during the period.

Manny Roman, chief executive officer of Man, said: “We had a good start to the year from a performance perspective which, together with the latest acquisitions, contributed to an overall 7 per cent increase in FUM over the quarter.

“Our flows in Q1 reflect a natural lag between better investment performance and higher sales. As we have commented previously, our business is now more institutional in nature, with larger individual mandates causing greater variation in flows on a quarterly basis.

“We retain a degree of caution on the outlook for first half flows. As ever, the outlook for the rest of the year will likely depend on performance.”

Man Group also announced that Jon Aisbitt intends to step down as chairman and as a director of the company in May 2016, after holding the post of chairman since September 2007.

Mr Aisbitt said: “It has been a privilege to lead the Board over the past eight years, and I am very proud of the progress the firm has made in diversifying and repositioning for further growth. I will leave Man Group in the hands of an experienced, dedicated management team, and with a first-class Board, with whom I will continue to work over the next year to help ensure a smooth succession process.”

A committee of the Board, led by the senior independent director, Phillip Colebatch, will identify his successor.