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Quant alt strategies drive USD5.9bn H1 FUM increase at Man Group

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Man Group has reported a 5 per cent increase in funds under management (FUM)1 to USD114.4 billion in the first six months of 2019 up from USD108.5 billion as at 31 December 2018 on the back of strong performance by the group’s quant alternative strategies.

The group saw positive investment movement of USD6.8 billion in the period (H1 2018: negative USD1.7 billion) with net outflows of USD1.1 billion (H1 2018: net inflows USD8.3 billion). Positive FX translation and other movements totalled USD0.2 billion (H1 2018: negative USD2.0 billion).

Adjusted profit before tax (PBT) was up 3 per cent  to USD157 million (H1 2018: USD153 million), with an adjusted management fee PBT of USD83 million (H1 2018: USD120 million) incorporating non-operating impacts of USD21 million from the FX hedge and the adoption of IFRS 16, as well as no associate income following the sale of the group’s stake in Nephila in 2018. The adjusted performance fee PBT totalled USD74 million (H1 2018: USD33 million).
Luke Ellis, Chief Executive Officer of Man Group, says: “Absolute performance was strong in the first half of 2019, particularly in our quant alternative strategies, which drove a USD5.9 billion increase in FUM and growth in profits. Relative performance and flows were more mixed with outperformance and inflows into our quant alternative strategies and underperformance and outflows from our valuation biased strategies, with clients continuing to reduce their equity exposure coming into the third quarter.
“We enter the second half of 2019 with good performance fee earning potential with 90 per cent of Man AHL strategies at high water mark and the diversified nature of our business means that we remain well positioned to navigate the current economic environment. We continue to focus on delivering superior risk adjusted performance for our clients and, in doing so, creating long-term value for our shareholders.”

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