Man Group looks to kick on after client inflows

Date: Thursday, May 26, 2011
Author: Laurence Fletcher, Reuters

* Change in asset level likely to be driven by client flows

* Said in March it expects pretax profit of $560 mln

* AHL fund down 6 percent since May 2 after volatility

LONDON, May 26 (Reuters) - Man Group (EMG.L), the world's biggest listed hedge fund manager, hopes to build on a recent bumper fundraising in Japan and continue to win back clients after two years of outflows, despite recent market volatility. Earlier this month the firm said it had raised $1.5 billion for an open-ended Japan fund, smashing analysts' forecasts, and building on March's trading statement, in which it said it expected $700 million of net inflows for the three months to March. [ID:nLDE74206U] [ID:nLDE72R21R]

"Although the focus has shifted from (higher margin) guaranteed product launches, the environment for open-ended products offers encouragement that sales can remain healthy through the year," said Peel Hunt analyst Stuart Duncan in a note.

On Thursday the firm will report how far assets have risen or fallen since March's statement, in which it said it expected full-year pretax profit to be $560 million.

Flagship "blackbox" fund AHL is down 6 percent since May 2 after a sharp sell-off in commodity markets earlier this month, and has now fallen back to end-March levels.

Analysts at Evolution say this means that any change in Man's assets under management is likely to be due to client wins or losses.

The firm is also likely to detail cost savings from last year's $1.6 billion purchase of GLG, which it bought to boost assets and diversify away from computer-driven funds.

Earlier this month CEO Peter Clarke said the firm planned to expand the number of fund managers based in Asia.