Funds under management (FUM) at Man Group totalled USD52.5 billion as at 30 September 2013 – up from USD52.0 billion ((30 June 2013) – according to the company’s latest interim management statement.
Net inflows in the quarter were USD0.7 billion, comprising sales of USD4.1 billion and redemptions of USD3.4 billion with net inflows into GLG alternatives and long only funds being partially offset by net outflows from AHL and FRM funds
Overall investment movement of negative USD0.1 billion in the quarter.
The majority of GLG alternative strategies had positive performance in the quarter, adding USD0.3 billion to FUM. GLG long only strategies contributed positive investment movement of USD0.4 billion in the quarter with the Japan Core Alpha fund up 4.4% and the Global Equity fund up 7.4%.
AHL Diversified programme was down 6.6% in the quarter which was the main driver of the negative investment movement of USD0.5 billion in Quant strategies.
Performance at FRM was negative overall which reduced FUM by USD0.3 billion in the quarter.
FX movements of positive USD1.2 billion in the quarter, driven by the weakening of the US dollar against the Euro and Sterling.
Other negative movements of USD1.3 billion driven by guaranteed product degears of USD1.0 billion and product maturities and other movements of USD0.3 billion.
Previously announced cost savings programmes remain on track.
Manny Roman, Chief Executive Officer of Man, says: “The net inflow in the quarter was driven by institutional flows into discretionary alternatives and long only strategies. Inflows were linked primarily to stronger performance in the first half of the year and were characterised by sizeable asset flows from certain customers, albeit into relatively low margin products.
“The equity rally in July, followed by a sell-off in August, and volatility in financial markets in September provided challenging market conditions for hedge funds, and in particular CTAs. As a result performance in the majority of the AHL and FRM strategies was negative in the quarter, although performance at GLG overall was positive.
Despite better flows in the third quarter we remain cautious in our outlook for asset flows going forward in the light of continued uncertainty in the macro-economic environment.”