12th Oct 2018 07:58
LONDON (Alliance News) - Man Group PLC said Friday its investment performance in the third quarter was "mixed" but continues to believe it is "well positioned" going forward.
The FTSE 250-listed fund manager increased its closing funds under management in the three months ended September to USD114.1 billion from USD113.7 billion at the opening of the period.
Man Group recorded USD400 million net inflows in the third quarter, excluding a previously announced USD2.2 billion infrastructure mandate redemption. Net inflows in the second quarter totaled USD3.5 billion.
Year-to-date, the fund's net inflows in the first nine months of the financial year totaled USD8.7 billion.
Man Group recorded USD900 million in positive investment movement during the third quarter, offset by USD700 million in negative foreign exchange movements.
"Investment performance in the quarter was mixed with strong absolute and relative performance in our momentum and discretionary long only strategies but weaker relative performance in our discretionary alternative and systematic equity strategies," said Chief Executive Luke Ellis.
The fund's best performing strategy in the quarter was its Systemic equity strategies, delivering USD1.2 billion in net inflows and USD300 million positive investment movement.
Ellis continued: "We saw continuing inflows into our alternative risk premia strategies and strong flows into our systematic equity strategies."
The FTSE 250-listed fund said American insurance company Markel Corp's acquisition of Nephila Holdings Ltd will net Man Group about USD130 million due to its 18.5% management fee only profit interest in Nephila.
Man Group also said it will undergo restructuring to accommodate the success of its US business. Man Group will be incorporating a new group holding company in Jersey.
The company stated it would remain a UK listed company and will remain a UK tax resident.
Shareholders would exchange their existing shares in Man Group PLC for shares in the new holding company on a one-for-one basis and Man Group will remain the head of the group.
Other Man Group subsidiaries operating in the US and Asia will be reorganised under the new holding company.
Ellis added: "Looking forward, Man Group is well positioned, with strong fundamentals, and we remain focused on enhancing our technology platform and continuing to develop innovative strategies for our clients."
Shares in Man Group closed at 145.45 pence each on Thursday.
Related Shares:
Man