Peter Clarke Opalesque Industry Update - Man Group’s funds under management went from $69.1bn in Q1-2011 to $71bn in Q2, representing a rise of around 2.8% (compared to $68.6bn at the end of 2010; $38.5bn in Q2-2010; and $60bn at the end of 2007).
This accounts for net inflows of $3.7bn in Q1, reflecting record sales of $9bn and redemptions of $5.3bn.
$4.1bn (net) went into alternative funds and $0.4bn left long-only funds. Guaranted products were especially popular, and net flows into institutional fund of funds were flat.
Revenue synergies from the GLG acquisition include $1bn from an emerging markets currency product in Japan, and $400m from the first guaranteed product blend, namely Man IP 220 GLG. FX generated a positive contribution of $0.8bn in Q1, mainly due to the strengthening of the Euro, Swiss Franc and Japanese Yen against the US dollar.
Man’s new open-ended AHL fund in Japan now manages $2.3bn: the Nomura Global Trend fund, the first onshore Japanese fund launched by Man's AHL unit, began trading at the end of April 2011.
Challenging market conditions led to $1.1bn of negative investment movement in the quarter, as AHL went down 0.6% in Q2, 12% below peak on a weighted average basis. As for GLG’s product range, the European alternative funds had positive performance but most other funds were either flat or slightly negative.
Now AHL manages $32.9bn (compared to $22.7bn in Q1), GLG ‘s long-only funds $13.7bn ($14bn in Q1), GLG’s alternative funds $20.2bn ($18bn in Q1), and the multi-manager funds run $13.2bn ($14.4bn in Q1).
“Current markets are creating challenging performance conditions for most asset classes, and our assumption is that investor sentiment will remain patchy over the summer months," commented Peter Clarke, Man’s CEO. "The combination of our broad range of liquid investment styles, ability to craft portfolio solutions for investors, and the wide geography of our franchise, is a key advantage in these markets."
The listed alternative investment management firm is head-quartered in Switzerland.