1st Aug 2014 07:36
LONDON (Alliance News) - Man Group PLC Friday reported USD800.0 million of net inflows in the second quarter, which combined with a USD1.4 billion positive investment movement to help send funds under management up by USD2.7 billion to USD57.7 billion at the end of June.
The investment manager's funds under management were also buoyed by sales of USD5.9 billion, outweighing USD5.1 billion of redemptions over the the three-month period. Over the first six months of the year as a whole, Man Group's funds under management increased by 7%.
The figures were published within half year results showing a USD106.0 million pretax profit, compared with USD122.0 million in the corresponding period last year. Revenue fell to USD500.0 million, from USD619.0 million, as a USD130.0 million fall in gross management and other fees to USD399.0 million more than offset an USD11.0 million increase in performance fees.
On an adjusted basis, which strips out restructuring costs, amortisation and impairment of intangible assets and certain non-recurring gains or losses, pretax profit increased to USD148.0 million from USD134.0 million.
Man Group raised its interim dividend to 4.0 cents per share from 2.6 cents a share last year.
Man Group's results come after busy first half of the year, during which it acquired Numeric Holdings LLC, a Boston quantitative equity manager that had USD14.7 billion in funds under management at the end of May, for up to USD494.0 million, as well as Pine Grove Asset Management LLC, a fund of funds manager with about USD1.0 billion in assets under management, with the group looking to scale up in the US. The acquisitions are due to complete later this year.
"Whilst it has been a positive first half for the firm and we recorded another quarter of net inflows in [the second quarter], we remain cautious as we look to the second half of the year. Investment performance in [the first half] was mixed amid a continued volatile market environment. AHL performed strongly on an absolute and relative basis across all its alternative strategies. Performance elsewhere was good in credit and discretionary long only but below expectations in equities and macro," Chief Executive Manny Roman said in a statement.
Man Group shares were down 1.2% at 117.55 pence early Friday.
By Samuel Agini; [email protected]; @samuelagini
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