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Man Group’s FUM up 8 per cent in H1 2015

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Funds under management (FUM) at Man GLG jumped 8 per cent to USD78.8 billion for the six-month period ended 30 June 2015 (31 December 2014: USD72.9 billion), according to the firm’s latest interim management statement.

Gross sales meanwhile totalled USD10.5 billion (H1 2014: USD12.4 billion), redemptions stood at USD13.1 billion (H1 2014: USD9.6 billion), with net outflows of USD2.6 billion (H1 2014: net inflows USD2.8 billion) and investment movement of USD3.8 billion (H1 2014: USD0.7 billion).
Manny Roman (pictured), Chief Executive Officer of Man, said: 
“While the first quarter of the year saw a more stable environment in financial markets, which benefitted all of our strategies and in particular AHL’s momentum strategies, the second quarter was characterised by renewed volatility. As a result, AHL’s momentum strategies gave back the gains they had made in the first quarter however GLG, Numeric and FRM’s strategies generated good risk adjusted returns adding to their strong start to the year.
Flows for the half were skewed by USD3.4 billion of net outflows from our Japan CoreAlpha strategy as some investors redeemed following a long period of strong absolute and relative performance. We saw solid flows into our quant strategies, including one large institutional mandate into AHL, however elsewhere investor appetite remained muted as renewed market volatility tempered investors’ willingness to put their money to work.
Markets remain very challenging and, accordingly, we remain cautious in our outlook for the remainder of the year. As ever, we remain committed to investing in talent, research and technology and building the optimal environment to deliver superior risk adjusted performance for our clients, which will ultimately translate into the delivery of value for our shareholders.”
Man’s dividend policy is to pay at least 100 per cent 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 the Board has declared an interim dividend for the year to 31 December 2015 of 5.4 cents per share, being the adjusted management fee earnings per share for the six months to 30 June 2015 (refer to Note 12 to the financial statements (page 28)). The interim dividend will be paid at the rate of 3.47 pence per share.

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