Man Group FuM rise 35% amid record net inflows

FTSE 250 hedge fund Man Group reported a rise in full-year funds under management on Wednesday amid record net inflows.

In the year to the end of December 2017, funds under management jumped 35% to $109.1bn, as net inflows surged to $12.8bn from $1.9bn the year before.

Man Group said strong client demand for emerging market debt, FRM managed accounts and quant strategies underpinned net inflows, along with an FX tailwind and the acquisition of Aalto. Growth was broad based, with the group’s alternative and long only strategies, quant and discretionary approaches, and all of its investment engines growing their funds under management during the year.

Adjusted pre-tax profit rose to $384m from $205m in 2016, while statutory pre-tax profit came in at $272m versus a loss of $272m the year before.

Man recommended a final dividend of 5.8 cents per share, taking the total dividend for the year to 10.8 cents, up from 9 cents.

Chief executive Luke Ellis said: "2017 was a strong year for our business. The record net inflows of $12.8 billion reflected not only the outperformance we delivered for clients, but also our focus on deep client relationships. Our FUM grew by 35% and this, combined with the strong investment performance and our focus on running the business in an efficient and effective manner, led to excellent profit growth, with an 87% increase in adjusted profits.

"In common with others, the recent moves in markets have impacted our investment performance in some areas, particularly for our momentum strategies. However, looking forward Man is well positioned, with strong fundamentals, investment in innovative strategies and a continuing pipeline of interest from clients. As ever, we remain focused on delivering long term investment performance and the highest quality service to our clients."

At 0810 GMT, the shares were up 2.3% to 185.35p.