2nd Mar 2021 12:30
(Alliance News) - Man Group PLC on Tuesday raised its dividend for 2020 as it continued to surpass records on managed funds, however profit faltered due to a plunge in performance fees.
As at December 31, the London-based fund manager held USD123.6 billion in funds under management, up 5.0% from USD117.7 billion the same date the year before.
Man Group recorded net inflows of USD1.8 billion for 2020, swinging from USD1.3 billion in outflows the year before. However, the group noted a much weaker rise in investment performance, which added USD3.3 billion in funds, compared to USD10.1 billion in 2019.
Man Group's Alternative funds under management ended the year 8.0% higher at USD77.2 million, with a rise in all asset classes, Absolute Return showing the fastest growth at 11%.
The group's Long Only funds also performed well, edging up 0.4% to USD46.4 million, with a rise in its Systematic assets more than offsetting a dip in Discretionary.
However, the fund manager's pretax profit fell 42% to USD179 million from USD307 million the year before, as core net revenue declined 15% year-on-year to USD947 million from USD1.11 billion, due to a plunge in performance fees to USD199 million from USD345 million.
Man Group declared a final dividend of 5.7 US cents per share, bringing the total payout to 10.6 cents, up 8.2% from 9.8 cents in 2019.
"Last year was an exceptionally difficult time for much of the world, with Covid-19 fundamentally changing our day-to-day lives and how businesses operated. I am proud of how the Man Group team pulled together and am delighted to deliver a strong set of financial results in a challenging environment, which demonstrate both growth and resilience. We have increased our management fee profits and our dividend to shareholders, and grown client assets to end the year at a new record high for funds under management," said Chief Executive Officer Luke Ellis.
Shares in Man Group were up 1.6% at 156.20 pence on Tuesday in London.
By Dayo Laniyan; [email protected]
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