28.02.2023 Man Group's profits rise
Opalesque Industry Update - Man Group said on 28 February that pretax profit in 2022 rose on higher management and performance fees, and that it intends to repurchase more shares.

Significant alpha and net inflows reflect quality of investment offering across alternative and long-only.

Asset weighted investment outperformance versus peers across our strategies of 1.4%.

Net inflows of $3.1 billion for the year ended 31 December 2022, 5.3% ahead of the industry.

Assets under management (AUM) of $143.3 billion, up from $138.4 billion as at 30 September 2022.

Core net management fee revenue growth of 6% despite clear sector headwinds.

$779 million of core performance fees; a very strong outcome for a second consecutive year.

Statutory EPS (diluted) of 45.8¢ and core EPS (diluted) of 48.7¢[KPI], the highest in over a decade.

12% increase in the total dividend per share, in line with our progressive dividend policy.

Net financial assets of $983 million as at 31 December 2022 (2021: $907 million).

Intention to repurchase a further $125 million of shares after the share buyback programme announced in December 2022 is complete ($114 million of shares had been repurchased as at 24 February 2023).

Luke Ellis, Chief Executive Officer of Man Group, said: "2022 was another strong period of growth for Man Group, demonstrating the ability of our talent and technology to deliver for our clients, and the merits of the resilient and diversified business model we have built.

"Our unwavering focus on building strong client relationships globally, together with the range of innovative investment strategies and solutions we offer, resulted in net inflows of $3.1 billion during the year. This was despite clear headwinds elsewhere in the asset management industry. Our investment strategies delivered valuable alpha for our clients, generating 1.4% of relative outperformance overall; our absolute return strategies performed particularly strongly, resulting in a 4% increase in our assets under management from alternatives. Growth in management fee and performance fee revenues, which were very strong for a second consecutive year, and the operating leverage inherent in our business model, resulted in core earnings per share growth of 26%.

"In 2022, allocators rediscovered the value that liquid alternatives can bring, providing uncorrelated returns to investors in a difficult year and delivering much needed liquidity within their portfolio. Looking ahead, there is a significant opportunity for active investment managers, particularly those with the ability to offer alpha irrespective of the direction of prevailing market trends and in a liquid, highly customisable format. This gives us great confidence in our ability to continue to grow in 2023 and beyond, delivering positive outcomes for clients and shareholders alike."

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