Man Group’s assets under management fell by more than a third in the 12 months to March 2009 to USD46.8bn, according to figures released by the alternative investment manager.
Man Group’s assets under management fell by more than a third in the 12 months to March 2009 to USD46.8bn, according to figures released by the alternative investment manager.
The group lost USD0.9bn in the period between its 26 March trading update and the close of the quarter, due to poor performance and negative currency effects. And AUM has continued to fall since with funds under management estimated to total USD44bn as at 26 May, 2009.
During the year, Man’s RMF Four Seasons strategy, which was exposed to US fraudster Bernard Madoff, lost 15.6 per cent, while its Glenwood product lost 16.7 per cent and its multi-strategy Man-IP 2202 fell 8.3 per cent.
Net outflows from institutional investors were USD4.3bn, while net inflows from private investors were USD2.2bn.
Since March, institutional net outflows were over USD3bn, while private investor net inflows were around USD1.8bn.
Full-year profit before tax and adjusting items was USD1.2bn, in line with its guidance in March and down from USD2.1bn a year ago.
Peter Clarke, chief executive of Man Group, says: ‘The past financial year saw extraordinary turmoil in financial markets globally which put extreme stress on business models across the financial services industry. Man has not been immune; our funds under management have decreased and our earnings for the year reduced 40 per cent to USD1.2bn, before adjusting items.
‘Despite difficult markets we saw a record level of private investor sales in the year, demonstrating the appeal of our products and the strength of our distribution franchise even at times of market stress. We have taken action to reduce the cost base of the firm to reflect the lower level of assets, and adapted our business model and product offerings to suit current investor requirements. We ended the year with an increase in both our capital surplus and net cash position and in light of our financial strength the board is declaring a maintained final dividend for the year.’
Based on the group’s earnings generation and business performance in the year and the strength of its balance sheet, the board intends to declare a maintained final dividend of 24.8 cents per share, giving an unchanged total dividend in dollar terms for the year of 44 cents per share.
