Monday, 24 October 2016
Last updated 1 hour ago
Nov 5 2010 | 11:41am ET
The Man Group said yesterday that its pre-tax profit dropped by more than a fifth in the third-quarter as its fee income dropped sharply.
The firm, which last month completed its acquisition of GLG Partners, still managed to top its own profit forecast at US$227 million. But that was down 22% from the $292 million in pre-tax earnings it took in during the third quarter of last year.
Man suffered a 10% drop in management fee revenue and a nearly two-thirds drop in performance fee revenue during the quarter. Still, the firm’s hedge funds—including its flagship AHL strategy—did well on the quarter, with AHL up 6.6% and now just 6% off its high-water mark, leaving the firm with US$40.5 billion in assets on Sept. 30.
The firm now manages much more, of course, following the GLG acquisition. Man said buying GLG added US$25 billion to its coffers, and that the combined firm currently manages US$67 billion, up from the US$63 billion the merger was expected to produce.
“With a wide range of investment styles now being marketed worldwide and an unrelenting focus on investment performance, Man is well-positioned for asset growth,” CEO Peter Clarke said.