Alternative Market Briefing

Man Group’s Annual Report reflects impact of 'a turbulent market and economic background’

Monday, March 18, 2013

Beverly Chandler, Opalesque London: The Man Group Annual Report for 2012 shows a further decline in profitability for the group due to a 43% drop in high margin guaranteed product FUM and $7.3bn of net outflows. Other highlights include:

$979 million goodwill impairment leads to a statutory loss
Significant progress made in reshaping the business
Acquisition of FRM completed in July and integration into the Multi-Manager business now complete
$95 million of operating cost savings announced in January 2012 delivered and on track to deliver further annual cost savings of $100 million by the end of 2013
Improvement in capital and liquidity through sale of assets in the Lehman estates and positive operating cash flow.

Funds under management with the group stood at $57bn at end December 2012, down 2% year on year. The decrease comprises: net outflows of $7.3bn de-gearing and other movements of $3.4bn, negative FX of $0.3bn, partly offset by acquired FRM FUM of $8.3bn and positive investment performance of $1.3bn.

Sales stood at $12.8bn, split between $9.0bn alternatives and $3.8bn long only. Net outflows of $7.3bn in total, with net outflows of $6.8bn out of alternatives and $0.5bn out of long only. Sales were $16.7bn for the prior nine month period.

Gross revenue comprised $1,209m of management fees and $90m of performance fees. Revenue was imp......................

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