Man Group first-half FuM, profits rise

Man Group reported a rise in first-half funds under management and profit on Tuesday as net inflows and performance fees grew.

In the six months to the end of June, funds under management increased to $95.5bn from $76.4bn, with net inflows of $8.2bn compared to $1bn in the same period a year ago. Meanwhile, pre-tax profit jumped to $76m from $55m as performance fees surged to $106m from $42m, and the company upped its interim dividend to 5 cents per share from 4.5 cents.

Chief executive officer Luke Ellis said: “We saw strong inflows from clients during the half and a 19% increase in funds under management with growth across all our investment managers. However our revenue margin has compressed during the half as we have won several large, low margin mandates, meaning our management fees have grown at a much steadier pace.

“The first half was unusual in both the scale of net inflows, and the level of margin compression. We would expect both to moderate in the second half, particularly given the uneven nature of institutional flows. As ever, we are committed to seeking opportunities to invest in talent, research and technology. Our priority remains focusing on delivering superior risk adjusted performance for our clients, which will translate into the delivery of value for our shareholders."

At 0945 BST, the shares were up 4.4% to 167p.