Man Group Says Outflows Down In 2012

Mar 1 2012 | 8:45am ET

Man Group CEO Peter Clarke says net outflows are down and assets under management are up to date in 2012, as the company released its results for the nine months ended Dec. 31, 2011.

Clarke told journalists during a conference call on Thursday that the drop in net client outflows so far in 2012 has been “significant,” especially in February. Man’s assets under management increased to $59.5 billion at the end of February from $58.4 billion at the end of 2011.

The Man Group, one of the world’s largest hedge fund managers, recorded an adjusted pre-tax profit of $262 million for the nine months ending December 31, 2011.

Clarke, in a statement, attributed the increase to performance, “with strong returns at GLG and a smaller positive contribution from AHL.”

To date in 2012, the $21 billion computer-driven AHL fund is up 2.5% (it lost 6.4% in 2011) and among the GLG funds (purchased for $1.6 billion in 2010) the onshore version of the Alpha Select fund is up 5.2% and the Japan Core Alpha fund has gained 19.3%. GLG alternatives funds managed $15.5 billion as of the end of 2011.

“Investor sentiment has improved compared to the last quarter of 2011 and lower redemptions have driven a significant reduction in the rate of net outflows. But sentiment remains fragile and it is likely to take a longer period of stability in markets and continued performance before this translates into increased sales and net inflows,” said Clarke's statement.

Man also announced revisions to its dividend policy, which now has two parts. The group says it will distribute all of its adjusted management fee earnings per share as a dividend but will also hold performance fees as extra capital to be distributed, where possible “by way of higher dividend payments and/or share repurchases.”

The new policy replaces Man’s “progressive” dividend policy which had resulted in dividend payments that were not covered by earnings.

Man expects to pay a total dividend of $0.22 a share in 2012.


In Depth

GSAM's Papagiannis: Liquid Alternatives For The Long Run

Apr 21 2017 | 8:44pm ET

Interest in liquid alternatives cooled a bit last year amid a broad shift in investor...

Lifestyle

Aston Martin Returns To Debt Market As DB11 Drives Turnaround

Mar 31 2017 | 5:21pm ET

James Bond’s preferred carmaker is returning to the public debt markets for the...

Guest Contributor

Debunking Conventional Investment Wisdom (Part II)

Apr 17 2017 | 5:56pm ET

The alternative investment industry is currently replete with buzzwords around data...