Man Group’s funds under management reach new high in Q3

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Man Group’s funds under management reached a new high of USD139.5 billion during the third quarter, fueled by positive inflows and strong investment performance, with its hedge fund and alternative strategies driving growth.

The London-based publicly-traded investment management giant – often considered a bellwether for the wider UK hedge fund industry – attracted net inflows of USD5.3 billion and positive investment returns of USD400 million, which outweighed negative FX and other impacts of USD1.5 billion stemming from a stronger US dollar particularly sterling and the euro.

Overall, Man added USD4.2 billion to its FUM in the three-month period to the end of September, bolstering the USD135.3 billion recorded the previous quarter.

In Man Group’s Q3 results statement on Wednesday, CEO Luke Ellis said: “We see positive momentum continuing into the fourth quarter, with a high level of client engagement on a number of larger institutional mandates across our systematic long-only and multi-manager strategies.”

The group’s alternative funds under management – which includes absolute return, total return and multi-manager solutions – grew to USD88.6 billion during the third quarter of 2021, up from USD84.2 billion at the end of Q2. This was fueled by USD5.1 billion of investor inflows coupled with USD500 million of performance gains, against negative FX and other movements of USD1.2 billion.

Meanwhile, Man’s long-only strategies shrank slightly in the three-month period, from USD51.1 billion to USD50.9 billion, as USD200 million of investor inflows were outweighed by investment losses of USD100 million, and USD300 million of negative FX and other movements.

Within Man’s alternatives range, its absolute return strategies – managed under the AHL and GLG brands – rose from USD38.3 billion at the end of Q2 to USD39.9 billion in Q3. Total return strategies – spanning alternative risk premia, private markets, CLOs and emerging market total return funds – increased from USD32.5 billion to USD34.6 billion over the same three-month period. Multi-manager solutions also grew, from USD13.4 billion at 30 June to USD14.1 billion as of 30 September.

Performance-wise, the GLG Alpha Selective Alternative strategy led the group’s hedge fund offerings, gaining 3.8 per cent. AHL Evolution rose 3.6 per cent, with the GLG European Long/Short Fund up 1.9 per cent and GLG Global Credit Multi-Strategy adding 1.2 per cent. On the downside, AHL Diversified lost 2.9 per cent, AHL Alpha fell 1.2 per cent, and AHL Dimension dipped 0.2 per cent.

Elsewhere, AHL TargetRisk added 3.7 per cent, Alternative Risk Premia grew 1.2 per cent, and the GLG Global Emerging Markets Debt Total Return was up 0.3 per cent. FRM Diversified II gained 2.8 per cent.

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Hugh Leask
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