The amount of money managed by Man Group grew 10 per cent in the first quarter on inflows to most of its strategies, positive investment returns and the closing of its acquisition of Aalto, a US property investment firm.
Assets under management, a common barometer of fund health, rose from $80.9bn at the end of 2016 to $88.7bn at the end of the first quarter.
Man CEO Luke Ellis said they started the year “with a good pipeline of interest from clients” and that looks set to continue.
“Looking forward, the global environment has the potential to create alpha opportunities and we see continuing near-term interest from clients,” he said.
“However, it is important to recognise that this is only one quarter and, as we have said before, flows are likely to vary on a quarterly basis given the institutional nature of our business.”
The company gained $3bn in net inflows, driven by new investments in long-only funds managed by GLG, its discretionary trading unit, and FRM, its unit that invests in other hedge funds. The only divisions to see net redemptions were GLG’s hedge fund strategies, and Numeric, the company’s long-only quant unit.
The purchase of Aalto, which completed at the start of the year, added $1.8bn, while investment returns added $2.2bn in the quarter.
One negative for Man was the continued underperformance for AHL, its quant hedge fund unit and one of its most profitable divisions. Three of its main AHL funds – Dimension, Alpha, and Diversified – all had negative returns in the first quarter, which was also the case last year. The fourth, Evolution, was up 2.8 per cent.