Adjusted profit before tax (PBT) at Man Group was USD145 million for teh first six months of 2017, an increase of 38 per cent on the H1 2016 figure of USD98 million, according to the company’s latest interim results.
Funds under management meanwhile increased to USD95.9 billion in the period up USD 80.9 billion for the end of December 2016, while net inflows totalled USD8.2 billion, up from USD1 billion for the same period in 2016.
Luke Ellis (pictured), Chief Executive Officer of Man, says: “The first half of 2017 has been one of solid performance with 4% growth in management fee profits and a 48% increase in total adjusted profits as performance fees improved, with positive contributions from across the group. We saw strong inflows from clients during the half and a 19% increase in funds under management with growth across all our investment managers. However our revenue margin has compressed during the half as we have won several large, low margin mandates, meaning our management fees have grown at a much steadier pace.
“The first half was unusual in both the scale of net inflows, and the level of margin compression. We would expect both to moderate in the second half, particularly given the uneven nature of institutional flows. As ever, we are committed to seeking opportunities to invest in talent, research and technology. Our priority remains focusing on delivering superior risk adjusted performance for our clients, which will translate into the delivery of value for our shareholders.”
“Man’s dividend policy is to pay at least 100% of adjusted net management fee earnings per share (EPS) in each financial year by way of ordinary dividend. In addition, Man expects to generate significant surplus capital over time, primarily from net performance fee earnings. Available capital surpluses will be distributed to shareholders over time by way of higher dividend payments and/or share repurchases, while maintaining a prudent balance sheet and taking into account required capital (including liabilities for future earn-out payments) and potential strategic opportunities.
“In line with this policy the Board has declared an interim dividend for the year to 31 December 2017 of 5.0 cents per share, being the adjusted management fee earnings per share for the six months to 30 June 2017 (refer to the Alternative Performance Measures section (page 36)). The interim dividend will be paid at the rate of 3.79 pence per share.
“In October 2016, the Board decided to carry out a share repurchase programme for up to USD100 million to return surplus capital to shareholders. Currently, around USD93 million worth of shares have been repurchased and cancelled, and we expect to complete the programme in the coming months.”
