27th Mar 2008 07:01
Man Group plc27 March 2008 27 March 2008 Pre-Close Trading Update and Funds Under Management Statement Man Group plc announces the following Trading Update and Funds Under ManagementStatement ahead of its close period for the year ending 31 March 2008. It is anticipated that Group profit before tax* for the year ending 31 March2008 will be ahead of consensus market expectations as net performance feeincome will be up strongly over last year and above expectations, reflectinggood performance across a range of our products in the year, and from AHL inparticular. Net management fee income will be up by over 15% on the prior year,driven by the growth in funds under management. Diluted earnings per share* areexpected to be up by over 50%. Sales for the year are estimated to be $15.8 billion, split 49% private investorproduct and 51% institutional product. Redemptions for the year were $10.6billion, of which private investor were $5.1 billion. Funds under managementhave risen and are currently estimated to be around $75 billion up from $61.7billion at 31 March 2007 ($71.7 billion at 31 December 2007). The split of fundsunder management is private investor $43.6 billion (31 March 2007: $36.6billion) and institutional $31.4 billion (31 March 2007: $25.1 billion). Sales for the three months to 31 March 2008 are estimated to be $3.5 billion, ofwhich guaranteed products accounted for $0.9 billion; open-ended privateinvestor sales for $1.0 billion; and institutional sales for $1.6 billion.Redemptions for the three months to 31 March 2008 were $2.6 billion, of whichprivate investor were $1.2 billion. In the three months to 31 March 2008,performance is estimated to have added $0.8 billion and currency translationimpacts and other adjustments a further $0.6 billion. Our most recent fund launch in the Far East, which closed in March, raised $1billion and has been included in FUM of $75 billion for the year to 31 March2008. This launch starts trading 1 April and therefore is not included in theabove sales figures. The Group continues to be in a very strong capital position and will havesignificant net cash at 31 March 2008. Man Group will announce its preliminary results for the financial year on 29 May2008. Peter Clarke, CEO of Man Group, today said: "This is a very strong set of results, achieved through a period of significantmarket turmoil. Funds under management have risen to around $75 billion. Strongsales momentum has been maintained with sales of $15.8 billion in the year,reflecting the attraction of our diversified product range, established trackrecord, and the broad geography of our investors. Good performance has added$5.3 billion to investor assets during a period when global markets wereexceptionally volatile. Redemption rates have fallen back towards recent lowlevels in the final quarter. Pre tax profits have risen substantially for the year, and will be ahead ofcurrent market expectations. In addition, our shareholders have seen substantialcash returns during the year, both from our enhanced distribution policy and theDecember 2007 capital return. Our balance sheet remains very strong and we havesignificant cash reserves. Our financial strength, strategic focus and strong performance mean that Man isextremely well placed to see continued strong growth." Note: The consensus market expectations of Group profit before tax* referred toearlier in this announcement are based on forecasts provided to Man Group bythirteen UK equity analysts since the Group's interim results in November 2007.The consensus, calculated as the average, is $1,824 million. * From continuing operations Enquiries Man Group plc 020 7144 1000Peter ClarkeKevin HayesDavid Browne Merlin 020 7653 6620Paul Downes 07900 244888Lachlan Johnston 07989 304356 About Man Group plc Man Group plc is a leading global provider of alternative investment productsand solutions for private and institutional investors worldwide, designed todeliver absolute returns with a low correlation to equity and bond marketbenchmarks. Man has a 20-year track record in this field supported by strongproduct development and structuring skills, and an extensive investor serviceand global distribution network. The Group employs 1,600 people in 13 countries, with key centres in London andPfaeffikon, and offices in Chicago, Dubai, Hong Kong, Montevideo, Nassau, NewYork, Singapore, Sydney, Tokyo and Toronto. Man Group plc is listed on theLondon Stock Exchange (EMG) and is a constituent of the FTSE 100 Index. Further information on the Man Group can be found at www.mangroupplc.com. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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