16th Oct 2020 08:29
(Alliance News) - Investment manager Man Group PLC on Friday said "robust" net inflows and positive investment performance led to a 4% rise in funds under management and the company remains "well-placed" to withstand market volatility.
Shares in the London-based company were up 5.3% at 123.45 pence each. Year-to-date the stock is down 22%.
The FTSE 250-listed company said FuM increased to USD113.1 billion at September 30 from USD108.3 billion at June 30, driven by net inflows of USD1.7 billion primarily from the company's Alternative Strategies as redemption levels normalised following Covid-19 related rebalancing.
Positive investment performance added USD1.7 billion to FuM and positive foreign exchange movements contributed USD1.4 billion, resulting from a weaker US dollar particularly against sterling and the euro.
By division, the company's Alternative Strategies posted a USD3.0 billion rise in quarterly FuM to USD72.4 billion from USD69.4 billion. Long-only FuM increased by USD1.8 billion to USD40.7 billion.
"As at September 30, 2020, 50% of the USD43.7 billion of performance fee eligible FuM was at, above, or within 5% of high watermark, of which AHL Alpha is the most significant individual component crystallising in the second half," Man Group said.
Chief Executive Officer Luke Ellis said: "We are pleased to report good performance in the third quarter and strong growth in funds under management. This was driven by robust net inflows into alternatives as anticipated, as well as performance gains across both alternative and long-only strategies. Engagement with clients remains good, although there is increasing uncertainty due to upcoming political events and current Covid-19 trends.
"Man Group is well-placed to withstand volatile periods and to grow over time, delivering increasing value to all our stakeholders."
By Tapan Panchal; [email protected]
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