Man Group funds under management down USD3.5bn in Q2

Date: Friday, July 10, 2009
Author: Hedgeweek.com

Man Group's funds under management totalled USD43.3bn at 30 June, a fall of USD3.5bn from the USD46.8bn reported at 31 March 2009.

However, strong private investor sales for the quarter of USD3.4bn and reduced redemptions led to private investor inflows of USD1.9bn.

The institutional business saw a net outflow of USD3.3bn. Sales remained muted and redemptions, estimated to be USD3.8bn at the end of May, totalled USD3.6bn for the first quarter. Second quarter redemptions of USD1.8bn were paid on 1 July, marking a significant reduction in the quarterly rate.

Man's fund of funds business saw positive performance in the quarter, but mixed economic indicators made trading conditions difficult for trend-following strategies such as AHL. These conditions generated a positive investment movement of USD0.4bn in institutional FUM and a negative movement of USD1.6bn in private investor FUM.

As at 30 June 2009, the regulatory capital surplus was USD1.8bn and available liquidity resources totalled around USD4.6bn.

Peter Clarke, chief executive, says: 'We have enjoyed a very strong quarter for private investor sales, raising USD3.4bn in the period which, together with reduced redemption rates, generated strong net inflows. Our product range, with its focus on liquid and transparent investment strategies, together with our long track record, has generated high levels of demand across our distribution network, particularly from Asia Pacific. Institutional sales remained muted in the first quarter and redemptions were high, in line with our statements in May. As anticipated, quarterly institutional redemptions have now declined significantly, with USD1.8bn paid on 1 July.

'Our new hedge fund management business is now operational. We have addressed the evolving investor requirements for hedge fund investing through this comprehensive and powerful business. This has been welcomed by investors and distributors alike and our latest products will be managed under the new investment process.

'With positive industry returns for 2009 to date and increasing investor focus on businesses with the resources and experience to adapt to today's market requirements, Man's financial strength and investment breadth means we are well placed to grow market share.'