Man Group tackled reports of a major institution withdrawing from RMF with an upbeat statement at its AGM earlier this week.

Harvey McGrath, Chairman of Man Group plc, stated: "The Board remains very confident of the prospects for the Group.  Demand for our fund products has been very strong, both from private clients and institutions.  Client money raised in the period since year-end was around USD 6.0 billion".

He said: "Man's two global launches, Man RMF Multi-Style and Man Global Strategies Diversified Series 2, accounted for USD 1.4 billion, with joint venture sales contributing USD 0.5 billion and other private investor sales USD 0.6 billion. Institutional sales, almost entirely at RMF, raised USD 3.5 billion".

"Group funds under management are estimated to be around USD 39.5 billion, up from USD 38.5 billion at the end of March, and after taking into account the maturity of a major legacy account at RMF."

"The maturity of this low margin product has allowed RMF to recycle and reprice high quality underlying capacity, so that RMF expects a material increase in its net profits.  Redemptions, at USD 0.6 billion, were at the low end of annualised long term experience."

McGrath said Man's brokerage division, Man Financial, has performed well, with ongoing growth in revenues from its traditional futures franchises, further successful recruitment of producer teams and the continued development of its matched principal businesses.

On the issue of the withdrawal, Man stated: "RMF had a series of agreements with a major institution that matured at the end of June. The total funds under management through these agreements was around USD 3.1 billion.  Of this, USD 0.6 billion is to be rolled into a new product for the institution and another USD 1.8 billion has been re-packaged and sold to other institutions - these amounts have been included in the figures shown above".