Man Group AUM up as strong dollar, trade tensions make for tough H1

Net inflows were flat at $8.3bn, while second-quarter flows of $3.5bn were much better than expected. Adjusted pre-tax profits were up 5% to $153m.

Man said the first half was a “choppier environment for the global investment management industry, with increased trade tensions between the US and China weighing on sentiment”.

It added that a strong dollar, higher US interest rates and local political uncertainty contributed to pressures on certain emerging markets, particularly in the second quarter.

“Absolute performance was impacted by these market moves, with over $1bn of the negative investment movement driven by negative returns in our Japanese long only and emerging market long only strategies.

Investment losses came in at $1.7bn with the stronger dollar costing $2bn.

“Given the difficult market backdrop and weaker performance in the first half, funds under management and adjusted profit growth were more limited,” said chief executive Luke Ellis.