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Last updated: August 2, 2013 6:41 pm
Total assets under management at the company dropped $2.8bn over the second quarter to $52bn, down from $57bn at the beginning of the year, the company said on Friday.
Shares in Man closed up 10 per cent to 91.5p.
Moderately positive investment performance across Man’s range of funds swelled assets at the company by $2.5bn during the first half of 2013 but only partially helped to offset more than $11bn in outflows in the same period.
AHL, Man’s flagship fund that uses computers to follow market trends, has largely been the cause of the group’s difficulties.
The fund – which made money shorting the yen at the beginning of the year – now manages just $9.4bn after it was hit hard by a correction in global bond markets in June.
“A sustained improvement in investment performance, particularly from AHL, remains the key prerequisite for an improvement in net flows,” said Emmanuel “Manny” Roman, Man’s chief executive.
Positive performance across Man’s other funds – particularly in its GLG stable – generated better than expected performance fee income.
While management fees for the group were down at $529m for the past six months, compared with $629m in the same period last year, performance fees have tripled, rising from $28m to $90m.
Nearly four-fifths of GLG assets are over their “high water mark” – the point of peak historical value beyond which they are permitted to take a cut of portfolio profits – said Man’s finance director Jonathan Sorrell.
The boost helped push the company’s overall profitability higher, with statutory pre-tax profit of $122m well ahead of expectations.
Man also stressed the range of new funds it had developed over the past six months in order to reduce its reliance on AHL.
The company has raised $400m of new external capital for its Evolution quant fund, it said, and last month unveiled a new “total return” macro fund which it believes has the capacity to manage significant assets from institutional investors.
The fund is intended to go into “direct competition” with a similar product run by Standard Life, Mr Roman said. Standard Life’s fund runs assets of about $40bn.
Man is reorientating its salesforce to target institutional clients, a process which has yet to reap significant rewards.
Other fund launches are planned for the second half of the year, Mr Roman added.
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