Man Group, the world’s largest listed hedge fund manager, said it made a profit before tax and adjusting items of $1.2 billion in the year ended 31 March, down by almost half from $2.1 billion a year before.

The UK firm said it logged $885 million in net management fee income, a fall from $1.143 billion in the previous 12-month period. Net performance fee income fell to $358 million from $936 million, Man Group said in a statement.

Funds under management stood at $46.8 billion at the end of March. It logged private investor sales of $11.3 billion and net inflows of $2.2 billion.

“Despite difficult markets we saw a record level of private investor sales in the year, demonstrating the appeal of our products and the strength of our distribution franchise even at times of market stress.  We have taken action to reduce the cost base of the firm to reflect the lower level of assets, and adapted our business model and product offerings to suit current investor requirements,” said Peter Clarke, chief executive of Man Group.

Man Group said that after the financial turmoil of last year, the “hedge fund industry has shown signs of stabilisation in early 2009.”

Meanwhile, Man Group said Glen Moreno, who has served as a non-executive director on its board for 15 years and as senior independent director since 2002, will be retiring from the board at the annual general meeting on 9 July 2009. His role will be assumed by Alison Carnwath who has been a non-executive director since 2001.