Man Group FY results reflect difficult year for industry

Man Group’s 2018 results reflected a “more difficult” year for asset management, but Luke Ellis, chief executive, said investment performance for Man was still better than its peers.

Funds under management fell from $109.1 billion in 2017, to $108.5 billion.

Net inflows were $10.8 billion, less than the $12.8 billion reported in 2017.

And there was a negative investment movement of $7.7 billion in 2018, compared to a positive movement of $10.7 billion the year before.

Performance fees also saw a large drop from $181 million in 2017 on a pre-tax basis, to $34 million in 2018.

Ellis said: “2018 was a more difficult year for the asset management industry, characterised by periods of higher volatility which impacted performance across asset classes and investment styles.

“Against this backdrop we reported a decrease in performance fee profits but are pleased to have once again outperformed peers and made continued progress in areas we can influence.”

The firm’s calculations for show Man Group outperformed peers across its strategies by 1% on an asset-weighted basis. The figure was 1.9% in 2017.

Ellis said Man had managed costs while investing for growth, and further diversified to capture new opportunities. It had also strengthened client relationships, which had helped with the broad-based net inflows of $10.8 billion.

Ellis added: “Looking ahead, we have had a healthy number of new mandate wins but as clients respond to changes in the market and adjust their portfolios we have also seen a pick-up in redemptions. I remain confident that Man Group is structurally well positioned for the future with compelling investment propositions, deep client relationships and a competitive advantage in our experience of using financial technology to drive investment returns.”

©2019 funds europe

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