11th Oct 2019 07:43
(Alliance News) - Man Group PLC on Friday said the outlook for flows remains mixed following a decrease in funds under management in the third quarter of 2019.
Man Group, a fund manager that focuses on private markets, said funds under management stood at USD112.7 billion at the end of September, down 1.5% from USD114.4 billion on June 30.
The decline was driven by net outflows of USD1.1 billion, comprising sales of USD6.6 billion and redemptions of USD7.7 billion, and negative foreign exchange and other movements of USD1.3 billion, Man Group explained.
Negative forex and other movements were driven by the US dollar strengthening against the Australian dollar, sterling and the euro, the company said.
Man Group also highlighted its management fee margin continues to decline due to the ongoing mix shift towards institutional assets, which are at a lower margin.
"In the third quarter, we saw a continuation of the trends experienced in the first half of the year with strong absolute performance and inflows into our quant alternative strategies, and outflows from our long-only equity strategies," said Chief Executive Luke Ellis.
"As we look ahead, we are encouraged by our good performance fee earning potential, although uncertain economic conditions mean the outlook for flows remains mixed," added Ellis.
By Evelina Grecenko; [email protected]
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