Sales Up, AuM Down At Man Group

Stephen Harris

29 September 2008

Sales at London-listed alternatives specialist Man Group for the six months to 30 September are estimated to be $10.0 billion, 25 per cent higher than for the equivalent period last year. Private investor and institutional redemption rates have remained low, in line with last year's levels. Estimated net inflows for the period are $4.1 billion, up 14 per cent.

But negative investment movement has reduced funds under management in the period by $5.0 billion. Active risk management in the core funds during recent periods of high market volatility has also reduced investment exposure. Together with the FX translation impact of the strengthening dollar, these moves have combined to reduce funds under management to an estimated $70.3 billion, down 6 per cent from 31 March 2008.

Net management fee income will be in line with the first six months to 30 September 2007, principally reflecting a lower level of net finance income but also continued investment in infrastructure and people to enhance the product range and further expand distribution, says the company.

Net performance fee income will be around 40 per cent below the comparable period last year, primarily as a result of a lower contribution from AHL.