Man Group, the largest listed hedge fund group in the world, has published interim results to end June 2016 that show that funds under management are down from the end December figure of USD78.7 billion to USD76.4 billion.
Net inflows in the second half were USD1.0 billion, compared with the same period in 2015’s which saw net outflows of USD2.6 billion. Gross sales were USD9.8 billion against the 2015 figure of USD10.5 billion, while redemptions were down, sitting at USD8.8 billion, against a figure of USD13.1 billion in the first half of 2015.
The adjusted profit before tax was USD98 million against the first half of 2015’s figure of USD280 million, management fee income was down to USD90 million (H1 2015: USD108 million), with performance fees of USD8 million (H1 2015: USD172 million).
The firm is paying an interim dividend of 4.5 cents per share, down from 5.4 cents per share in first half of 2015. The firm faces regime change as Luke Ellis (pictured) is set to succeed Manny Roman as Chief Executive Officer on 1 September 2016.
Commenting on the results, Manny Roman, Chief Executive Officer of Man, says: “The first half of 2016 has been a particularly challenging period for the global investment management industry. The first quarter of the year was a highly volatile period in financial markets. AHL’s momentum strategies performed well, but it was a difficult time for our long only strategies.
“Markets reversed in the second quarter, and as a result, AHL’s momentum strategies gave back the gains they had made in the first quarter. Recent volatility post-Brexit has benefited AHL but created a difficult environment again for our discretionary strategies. In the context of this market environment, we had net inflows of USD1.0 billion for the half. In particular, we saw good inflows into our quant business from institutional clients, across AHL’s range of strategies and into Numeric.
“Looking forward, the outlook, particularly cross border post Brexit, remains uncertain and accordingly the risk appetite of our clients has the potential to impact flows, albeit we have seen no meaningful change so far. The ongoing diversification of our business has enhanced our resilience as a firm and our ability to navigate the current economic environment. We are well-positioned to manage any subsequent regulatory changes, and assuming a stable regulatory environment, we are committed to keeping our headquarters in the UK. As previously indicated, we continue to explore opportunities to grow the business, both organically and by acquisition, to deliver long term value to shareholders.”
Roman concludes: “It has been a great privilege to have led Man Group through a period of evolution and progression for the business; it is an excellent firm and I am sad to be leaving, but I have decided to accept the new, outstanding opportunity at Pimco and move back to the US where my family is based.”
The new Chief Executive Officer of the Man Group, Luke Ellis, was profiled in December 2015’s AlphaQ. You can read that interview here.
