Opalesque Industry Update - Man Group (“Man”) today announced funds under management (FUM) for the six month
period to 30 September 2010 of $40.5 billion. This was up 5% from 30 June 2010 (FUM:
$38.5 billion) and ahead of the 28 September pre-close estimate of $39.5 billion due to
strong investment performance and favourable FX movements at the end of the reporting
AHL, Man’s quantitative managed futures manager, was up 9.0% in the calendar year to 30 September and AHL’s UCITS funds Diversity and Trend also delivered returns of 6.2% and 8.1% respectively in the same period. As at 30 September, AHL was 6.0% from peak on a weighted average basis.
GLG, which is now a wholly owned subsidiary of Man following completion of the acquisition on 14 October 2010, continues to outperform across a wide range of styles, with the top performing styles in the calendar year to 30 September 2010 being European distressed (+36.52%); global macro (+28.55%); market neutral (+28.38%) and emerging markets (+10.06%).
Man Multi-Manager also performed well in the calendar year to the 30 September 2010, with flagship multi-style portfolios such as Man Dynamic Selection returning 3.7%, compared to the HFRI Fund of Funds Composite Index which was up 2.1%. This outperformance was driven by active investment management which, together with a strong appreciation in guarantee instruments, boosted the performance of Man’s structured product range, with guaranteed product flagship Man IP220 up 18.5% in the calendar year to end September.
Peter Clarke, Chief Executive, said: “In the lead up to the acquisition of GLG, both Man and GLG delivered excellent investment performance – the key catalyst to flows. AHL returned 9% in the calendar year to end September with performance benefitting from strongly trending bond and currency markets, and GLG’s range of alternative and long only strategies continued to perform strongly. The quarter to 30 September also saw our first positive institutional flows for over two years, confirming investor demand for the liquidity, transparency and risk-adjusted returns offered by Man Multi-Manager.
“We have made a fast start to GLG integration and expect to deliver revenue synergies from marketing GLG strategies on a wider global scale, and from new, blended products, the first of which will be launched in the first quarter of 2011. With a wide range of investment styles now being marketed worldwide and unrelenting focus on investment performance, Man is well positioned for asset growth.”
Funds under management for the combined Man and GLG business at the end of October are estimated at $67 billion.