Earnings down in tougher year for Man Group

Man Group revealed lower earnings in its full year trading financials published on Wednesday.

Funds under management at the FTSE 250 firm grew 8% to $78.7bn (£56.18bn) during the calendar year, up from $72.9bn in 2014.

That included gross sales of $22.9bn, up 4.57%; redemptions of $22.6bn, up 21.5%; net inflows of $0.3bn, down 90.9%; investment movement of $2.4bn, down 33.3%; and foreign exchange translation effects and other movements of -$3bn, an improvement of 30.2%.

The acquisition of Silvermine, NewSmith and the BAML fund completed during the first half of the year added $6.1bn to Man's funds under management.

Its adjusted profit before tax was down 20.25% to $400m. Man Group said its net management fee profit was broadly in line with 2014, though its net performance fee profit was down following a very strong year in 2014.

Diluted statutory earnings per share were 10c, down 51.22%. Adjusted diluted earnings per share were 21.1c, down 13.5%.

Statutory profit before tax was $184m, down 52.1% from $384m in 2014.

"Against a backdrop of challenging market conditions, 2015 was another year of good progress for Man Group," said CEO Manny Roman.

"We have delivered against our strategic objectives, continuing to enhance our investment capabilities through the successful integration of three acquisitions that completed in the first half of the year and the appointment of some high calibre investment managers to the firm. FUM increased by 8% driven by acquisitions and flows were slightly positive in the year with net inflows of $2.9 billion in the second half," he added.

Looking forward, Roman said on-going volatility in the markets in which Man operated remained very challenging, with the risk appetite of clients possibly impacting flows.

"However, we now have a more diversified offering and a range of attractive options for growth, which have strengthened the firm and enhanced our resilience as a business," he concluded.

Man Group proposed a final dividend of 4.8c per share, taking the total dividend for the year to 10.2c, up marginally from 2014's 10.1c.

It had surplus regulatory capital of $453m on 31 December, up from $419m in 2014. That was $480m proforma for second half earnings and the final dividend, with the company explaining it was retaining the flexibility to take advantage of acquisition opportunities.