Man Group’s diversification pays off

Aquisition1The world’s largest publicly traded hedge fund manager, Man Group, has seen its total assets under management increase by 8% to $78.7 billion (€71.4 billion), driven by a series of acquisitions set to diversify its offering. Last year, Man Group bought US-based hedge fund Numeric for $219 million, UK asset manager Newsmith and Bank of America Merril Lynch’s fund of hedge fund business for $1.2 billion. Over the last year, Man Group’s management fee revenue increased by $44 million to $759 million but its pre-tax profits slumped by 52% to $184 million. Given the market turmoil last year, the group only gained $300 million in inflows, this compares to $3.3 billion of inflows in 2014. “Looking forward, the ongoing volatility in the markets in which we operate remains very challenging and, accordingly, the risk appetite of our clients might impact flows,” said Manny Roman, chief executive officer of Man Group. He added that the programme of diversification should strengthen the firm for the future. ©2016 funds europe

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