25th Sep 2007 07:03
Man Group plc25 September 2007 25 September 2007 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 six months ending 30 September 2007. Net management fee income will be up by over 15% on the first six months to 30September 2006, driven by the growth in funds under management. Net performancefee income will be ahead of the level achieved in the comparable period lastyear. Diluted earnings per share on continuing operations are expected to be upby over 10%*. Sales for the first half year are estimated to be $7.8 billion, of whichguaranteed products accounted for $3.2 billion; open-ended private investorsales for $1.0 billion; and institutional sales for $3.6 billion. Privateinvestor redemptions were $2.1 billion and institutional redemptions were $2.2billion. Reflecting the level of sales, funds under management have risen and arecurrently $68 billion, up from $61.7 billion at 31 March 2007. The split offunds under management is private investor $41 billion (31 March 2007: $36.6billion) and institutional $27 billion (31 March 2007: $25.1 billion). Peter Clarke, Group Chief Executive of Man Group, commented: "These results demonstrate the resilience of Man's business. Strong demand forour product offerings generated sales in the period of $7.8 billion. Thediversification of our investment styles, despite recent turbulence in financialmarkets, has generated $2.4 billion of positive performance for our investors inthe first half. Today the majority of our assets are within 5% of performancefee high water marks. Redemption rates are virtually unchanged on the prioryear. Accordingly, assets under management have advanced to $68 billion. Firsthalf net management fee income will be up by over 15% and net performance feeincome will be ahead of the level achieved in the comparable period last year. Our conservative approach both to portfolio construction and product leveragemeant that none of our structured products has had to degear in the period. Webelieve that the Group's capital strength will remain a key competitiveadvantage through the coming period. Furthermore, the current market environmentcreates opportunities for investment. Accordingly, Man remains very well placedfor further growth. Since the financial year end, we have returned $770 million to our shareholdersthrough a combination of the final dividend ($250 million) and share repurchases($520 million). Additionally, the Group remains committed to return to our shareholders the netproceeds of the successful IPO of MF Global of approximately US$2.8 billion,which implies a distribution of approximately 140 cents per share, in cash. Thisis intended to be through a B and C share arrangement, which allows shareholdersto elect for either a capital or income receipt, or a combination of both. Thearrangement is subject to shareholder approval at an EGM, concurrent with ashare consolidation reflecting the return of value. The distribution is expectedto take place before the end of the calendar year." Man Group will announce its interim results on 8 November 2007. * Earnings per share on continuing operations for the six months to 30 September2006 is 29 cents per share, restated for the separation of MF Global. Video InterviewA video interview with Peter Clarke, Group Chief Executive is available onwww.mangroupplc.com and www.cantos.com. EnquiriesMan Group plc 020 7144 1000Peter ClarkeDavid Browne Merlin 020 7653 6620Paul Downes 07900 244888Lachlan Johnston 07989 304356 About Man Group plcMan Group plc is a leading global provider of alternative investment productsand solutions. The Group employs 1,600 people in 13 countries, with key centresin London and Pfaeffikon (Switzerland), and offices in Chicago, Dubai, HongKong, Montevideo, Nassau, New York, Singapore, Sydney, Tokyo and Toronto. ManGroup plc is listed on the London Stock Exchange (EMG) and is a constituent ofthe FTSE 100 Index. Further information on the Man Group can be found atwww.mangroupplc.com. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Man