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Poor performance prompts outflows from GLG

Poor performance prompts outflows from GLG

Man Group has reported net inflows of $500m in the quarter to March 31 2016, in spite of a decrease in funds under management in GLG.

Net outflows of $500m from GLG’s discretionary long-only business were mainly in relation to the performance of its $3.6bn Japan CoreAlpha fund run by Stephen Harker, which was down 16.3 per cent in the quarter, compared to the Topix index which was down 12 per cent.

In its trading statement, the group said this had resulted in a negative investment movement of $1.2bn. Funds under management in its discretionary long only business decreased by $1.7bn.

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Net outflows from its discretionary alternatives business saw funds under management drop by $900m during the quarter, mainly driven by outflows of $600m from its North American equity and convertibles strategies.

The group reported net inflows of $1.3bn across its quant alternative strategies and inflows of $500m into its quant long only strategies.

Net flows into fund of funds alternatives were flat for the quarter.

Chief executive Manny Roman said the group had delivered results against a backdrop of “challenging market conditions”.

He added: “Investment performance across our quantitative strategies and net inflows meant that group funds under management remained stable over a highly volatile quarter.

“The ongoing uncertainty in the markets remains challenging and, accordingly, the risk appetite of our clients has the potential to impact flows. However, the ongoing diversification of our business has enhanced our resilience as a firm, and positions us well to navigate the current economic climate.”

Mr Roman said: “As we have previously indicated, we continue to explore new options for growth, both organically and by acquisition, within our disciplined financial framework.”

Shares in Man Group were up 4 per cent to 157.80p this morning following its results.