8th May 2015 06:41
LONDON (Alliance News) - Man Group PLC Friday reported a net outflow in the first quarter of 2015 but said funds under management increased, largely due to positive investment performance and the recent acquisition of Connecticut-based Silvermine.
Separately, Man Group said it is looking for its next chairman as Jon Aisbitt intends to step down in May 2016. Phillip Colebatch, the hedge fund manager's senior independent director, will lead the board committee tasked with finding his successor.
Funds under management increased to USD78.1 billion from USD72.9 billion in the first three months of 2015. Man reported a net outflow of USD1.3 billion as redemptions exceeded sales. Foreign exchange rate movements resulted in a USD2.0 billion hit to funds under management, largely due to the strengthening of the US dollar against the euro and sterling.
Positive investment performance added USD4.3 billion to funds, while the completion of the Silvermine acquisition added USD3.8 billion.
Man estimated that current funds under management amount to USD82.0 billion due to its acquisitions of equity investment manager NewSmith LLP and Bank of America Merrill Lynch fund of funds.
Chief Executive Manny Roman said flows in the first quarter reflected a "natural lag" between better investment performance and higher sales.
The CEO said Man's transition to becoming a more institutional business with larger individual management mandates results in "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. Whilst we have a reasonable pipeline of sales, in particular in our quant businesses, recent market volatility reminds us of the uncertain macro environment in which we operate and its potential impact on demand for our products," Roman said in a statement.
By Samuel Agini; [email protected]; @samuelagini
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
Man