Man Group Inflows Rise On Japan Fund Launch

Jul 7 2011 | 8:27am ET

The Man Group saw higher-than-expected net inflows in the first quarter of its financial year, thanks in part to the successful launch of an open-ended version of its flagship AHL fund in Japan.

The world’s biggest hedge fund manager recorded net inflows of $3.7 billion for the quarter, based on sales of $9.0 billion and redemptions of $5.3 billion, according to a company statement.

Man’s recently launched open-ended onshore AHL fund in Japan now manages $2.3 billion.

The first quarter results seemed to validate Man’s $1.6 billion acquisition of GLG in 2010—the group says revenue synergies from the acquisition include $1.0 billion from an emerging markets currency product in Japan and $400 million from the first guaranteed product blend, the Man IP 220 GLG.

Challenging market conditions reduced the value of Man’s funds by $1.1 billion during the quarter and its flagship computer-driven AHL fund was down 0.6% in the period, and 12% from peak on a weighted average basis.

Among the GLG funds, Man says European long/short and European distressed styles had positive performance in the period and global macro and other long/short strategies were negative.

Said Man CEO Peter Clarke:

“We are pleased to be reporting strong net inflows from investors over the last quarter. Following the successful integration of GLG at the end of 2010, we are seeing revenue synergies building, with investor flows into AHL, GLG strategies, and combination products.

“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. 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."

Man’s assets have returned to 2008 levels, after having slipped below $40 billion last year.

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