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Man Group assets fall 8% amid 'challenging time'

Thursday, July 30, 2020
Opalesque Industry Update - British hedge fund manager Man Group recorded an 8% fall in assets in the first six months of 2020 as the new coronavirus pandemic dragged down performance by $5.4 billion. Man Group's total assets under management at the end of June fell to $108.3 billion from $117.7 billion on December 31.

Negative investment performance of $5.4 billion (H1 2019: positive $6.8 billion).

Negative FX translation and other movements of $2.8 billion (H1 2019: positive $0.2 billion).

Net outflows of $1.2 billion (H1 2019: net outflows $1.1 billion).

Adjusted profit before tax (PBT) down 40% to $94 million (H1 2019: $157 million).

Adjusted management fee PBT of $86 million (H1 2019: $83 million).

Adjusted performance fee PBT of $8 million (H1 2019: $74 million) reflecting below average performance fee revenues given market backdrop.

Adjusted earnings per share (EPS) down 37% to 5.4 cents (H1 2019: 8.6 cents) primarily due to lower performance fee profits, partially offset by higher management fee profits and lower share count following the share buyback programme announced in October 2019.

Statutory PBT of $55 million (H1 2019: $110 million); Statutory EPS of 2.6 cents (H1 2019: 5.8 cents).

Asset weighted outperformance versus peers of 1.3% for the six months to 30 June 2020 (H1 2019: underperformance of 1.1%).

Proposed interim dividend of 4.9 cents per share (H1 2019: 4.7 cents per share).

Strong balance sheet and liquidity position - Net financial assets1 of $611 million ($674 million as at 31 December 2019).

Luke Ellis, Chief Executive Officer of Man Group, said: "The first half of 2020 was a challenging time for everyone. Our foremost priorities were the health and wellbeing of our colleagues and the performance of our clients' assets - and I am proud of what we achieved on both counts. We switched seamlessly to working from home, continued to support our clients at every step and generated outperformance in extremely volatile markets. As anticipated, redemptions increased in Q2, but it is pleasing to see flow momentum normalising as we enter the second half."

"Since the onset of the pandemic, we have acted to position the business for long-term success and our strong balance sheet has allowed us to concentrate on our people and our clients. Investing in our talent and technology, combined with our deep relationships with clients, is what will drive our future growth as the recovery develops."

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