Man Group’s funds under management (FUM) totalled USD57bn at 31 December 2012, down from USD58.4bn in December 2011, according to the group’s year end results for 2012.
Man group saw sales of USD12.8bn, redemptions of USD20.1bn, FRM acquisition USD8.3bn, investment movement of USD1.3bn, FX translation effects of -USD0.3bn and other movements, and principally guaranteed product de-gears, of -USD3.4bn, during last year.
Adjusted profit before tax (PBT) totalled USD278m, comprising adjusted net management fee PBT of USD223m and net performance fee PBT of USD55m.
The Group has also reported a further impairment of GLG goodwill (USD746m) in addition to the impairment reported at 30 June 2012 of USD233m (GLG USD91m and Man Multi-Manager USD142m).
Man group saw a statutory loss before tax for the year ended 31 December 2012 of USD745m, reflecting impairment of goodwill and other adjusting items. A total of USD95m in operating cost savings announced in January 2012 have been delivered, while further annual cost savings of USD100m announced in July 2012 are on track for delivery by the end of 2013.
Man Group’s has reported surplus regulatory capital of USD795m at 31 December 2012 and announced a proposed final dividend of 12.5 cents per share. The total dividend for the year is expected to be 22 cents
Manny Roman (pictured), chief executive officer of Man, says: “2012 was another tough year for Man. Trading conditions were highly challenging as markets continued to be dominated by political uncertainties in Europe and the US and macroeconomic risks. Investor appetite remained muted and as expected there was a further decline in Man’s product margin mix and revenues.
“Management’s priority last year was to maintain the focus on delivering investment performance for our investors, while reducing our cost base to a level which reflects the economics of a reduced and different mix of asset flows. On both counts we made good progress.
“As of mid-February 2013, most of our strategies were off to a good start and there is no doubt investor sentiment has improved somewhat. The number of requests for proposals and the pipeline of new mandates have increased to a degree. However, given the lead time required by institutional investors to invest, gross sales are likely to remain muted in the first half and we are yet to see a slow down in the rate of redemptions.
“We have introduced changes to senior management to further enhance Man’s focus on investment performance. We will maintain our efforts to make Man lean and efficient. We have identified areas where over the medium term we can build and enhance our investment platform and deliver profitable growth for our shareholders. This gives grounds for cautious optimism for the medium term, but there should be no doubt that business conditions remain very tough. We will continue to focus on delivering performance for our investors; from that, all else flows.”