UK-listed hedge fund manager Man Group logged a reported statutory loss before tax for the year ended December 31 of $745 million, reflecting what the firm said were tough market conditions, impairment of goodwill and other adjustments.

The firm, which is the world's largest listed hedge fund business, noted that future economic conditions remained difficult. 

Funds under management at the end of 2012 were $57.0 billion (December 31, 2011: $58.4 billion). There was, however, further impairment of GLG goodwill ($746 million) in addition to the impairment reported at  June 30, 2012 of $233 million (GLG $91 million and Man Multi-Manager $142 million).

A change of year-end from March to December makes direct comparisons complex, but gross management and other fees for 2012 of $1.209 billion (March- December 2011: $1.160 billion) after adjusting items of $1.023 billion (March-December 2011: $69 million) and other income and expenses produced a statutory loss before tax of $745 million (March-December 2011: profit $193 million).

“2012 trading conditions were highly challenging as markets continued to be dominated by political uncertainties in Europe and the US and macroeconomic risks. Investor appetite remained muted and as expected there was a further decline in Man’s product margin mix and revenues,” Man Group chief executive Manny Roman said in a statement.

“We have identified areas where over the medium term we can build and enhance our investment platform and deliver profitable growth for our shareholders. This gives grounds for cautious optimism for the medium term, but there should be no doubt that business conditions remain very tough.”