Man Group’s trading statement for third quarter 2017 revealed funds under management of USD103.5 billion, up 28 per cent year to date from a 30 June figure of USD95.9 billion.
The largest publicly listed hedge fund saw the quarterly net inflow of USD2.8 billion come into alternative risk premia and emerging market debt strategies, and a total positive investment movement of USD3.3 billion in the quarter.
FX movements driven by the weakening of the US dollar against the Euro and Sterling created positive FX movements of USD0.9 billion in the quarter. Man Group has also announced its decision to absorb research costs for the majority of Man’s business following MiFID II implementation in January 2018, at an estimated cost impact of USD10-USD15 million.
The firm also intends to repurchase up to USD100 million of shares and plans to look for further acquisition opportunities.
Luke Ellis (pictured), Chief Executive Officer of Man Group, says: “The third quarter of 2017 was a period of strong alpha generation for Man, with positive performance across the firm. As expected the pace of inflows and the level of margin compression both moderated during the quarter. Inflows remained strong overall and were focussed on some of our newer strategies, in particular alternative risk premia. We devote significant efforts to developing innovative solutions, and we are pleased to see our clients’ enthusiasm for these newer offerings.
“Looking forward we continue to see a decent level of interest from clients, with our normal caveat that flows are likely to be uneven quarter to quarter.”