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Man Group FUM up 35% in 2014

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Man Group has reported an increase in funds under management (FUM) of 35% to USD72.9 billion for the year ended 31 December 2014.

Gross sales were also up by a similar percentage (36%) in 2014 to USD21.9 billion (2013: USD16.1 billion), while redemptions were down 6% to USD18.6 billion (2013: USD19.7 billion).

Manny Roman, Chief Executive Officer of Man, says: “2014 marked a year of progress for the Group with strong performance at AHL, a full year of net inflows, the completion of the restructuring programme ahead of schedule and several key acquisitions and hires that have materially enhanced our investment capabilities and our North American business. We saw the benefits from these initiatives as FUM increased by 35% and adjusted profits by 62%.
“Despite the strong performance across the AHL range in 2014 we do not expect to see a meaningful pick-up in demand for these products until later in the year, and this, coupled with a slowdown in sales across our discretionary strategies and the ongoing volatility of the markets in which we operate, means that we remain cautious in our near-term outlook.
“After the significant progress made against our strategic objectives in 2014, however, we are better positioned as a group to grow our business profitably over time. We have a more diversified offering to clients and a range of attractive options for growth. If we are able to deliver superior risk adjusted returns for our clients, as we were able to in particular in our quantitative business last year, we will be able to leverage our global distribution to grow our assets steadily.”
“The Board confirms that it will recommend a final dividend of 6.1 cents per share for the financial year to 31 December 2014, giving a total dividend of 10.1 cents per share for the year. This dividend will be paid at the rate of 3.95 pence per share.

“Man’s dividend policy is to pay at least 100% of adjusted management fee earnings per share in each financial year by way of ordinary dividend. In addition, the Group expects to generate significant surplus capital over time, primarily from net performance fee earnings. Available surpluses, after taking into account required capital (including accruals for future earn-out payments), potential strategic opportunities and a prudent buffer, will be distributed to shareholders over time, by way of higher dividend payments and/or share repurchases. Whilst the Board continues to consider dividends as the primary method of returning capital to shareholders, it will continue to execute share repurchases when advantageous.

“In line with this policy it is our intention to launch a USD175 million share repurchase programme to return surplus capital to shareholders, which will be conducted over the remainder of the year.”

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