Hedge fund manager Man Group has reported net outflows of USD2.2bn in Q3 2012 up from USD1.4bn in the previous quarter.
This is the fifth straight quarter that the firm has seen net withdrawals of client funds although it stresses that the latest outflows are concentrated in lower margin product lines (institution fund of funds and GLG long-only).
Funds under management (FUM) as at 30 September 2012 totalled USD60.0bn, up 14 per cent since 30 June 2012 (USD52.7bn) with Man’s acquisition of FRM, which closed on 17 July, adding some USD8.3bn.
“The flow environment continues to be challenging and this was reflected in lower sales in the quarter,” says Peter Clarke (pictured), chief executive of Man. “Redemptions were in line with the levels experienced in the second quarter which resulted in increased net outflows, albeit in lower margin product lines. Investor sentiment, and consequently the outlook for flows, continues to be subdued.
“Funds under management increased in the quarter, driven by the acquisition of FRM which completed in July. This transaction has created the largest non-US based hedge fund of funds business and I am pleased to say that integration has progressed quickly and efficiently with positive feedback from clients.
“Against this backdrop, our focus remains on delivering performance for our investors and improving efficiency. We continue to attract high quality talent from the industry to bolster existing investment teams and to launch new product lines. We remain on track to deliver the cost savings announced in H1.”