Man Group swung into profit as its assets under management grew by 35 per cent to $109bn (£74.4bn) during 2017.
The company made a profit of $272m (£195m) before tax, swinging out of the red after a loss of $272m (£195m) the previous year - though the company said it faced several exceptional costs during the year.
But its margins fell as most of its growth in assets came in lower fee strategies.
The reduction in Man Group's net management fee margin of 0.11 per cent was driven by the growth of funds under management in lower margin strategies.
Net revenues increase by 33 per cent because of "good absolute performance fee generation", with a 7 per cent growth in net management fee revenue.
Luke Ellis, chief executive of Man Group, said: "In common with others, the recent moves in markets have impacted our investment performance in some areas, particularly for our momentum strategies.
"However, looking forward Man is well positioned, with strong fundamentals, investment in innovative strategies and a continuing pipeline of interest from clients. As ever, we remain focused on delivering long term investment performance and the highest quality service to our clients."
The asset growth came from record net inflows of $12.8bn (£9.2bn) and investment performance contributed $10.7bn (£9.2bn) while the acquisition of Aalto and foreign exchange movements contributed $4.5bn (£3.2bn) of asset growth.
The company announced a dividend for the year of 10.8 cents, compared with 9 cents in 2016.
david.thorpe@ft.com
