Morgan Stanley: Man Dividend In Doubt

Jul 19 2012 | 11:13am ET

The Man Group has promised its investors a US$0.22 dividend. Morgan Stanley isn't so sure.

A research note from the investment bank said it expects that Man will make the payment. But it warned the world's largest listed hedge fund firm could cut it to as little a 4.5 cents.

Why? Because, Morgan Stanley said, paying out the dividend as planned would cost US$300 million, and Man's net cash position at the end of March, when it announced the dividend, was just US$250 million.

"An assessment of Man as an investment remains fraught with challenges," Morgan Stanley wrote in the note, which was reported by Financial News. The bank said the poor performance of its flagship AHL strategy, distribution problems and high internal costs are all worrisome. What's more, the firm needs to prepare for its structured products business to shrink by more than half. Those portfolios account for about 30% of Man's revenue.


In Depth

Kettera Q&A: The Advantages of Alternative Investment Platforms

Oct 28 2016 | 5:52pm ET

The past several years have seen a distinct push towards easier and cheaper access...

Lifestyle

Midtown's Plaza District Fades As Manhattan Office Landscape Shifts

Nov 22 2016 | 6:32pm ET

Lower leasing costs, more efficient office space and the hope of projecting an image...

Guest Contributor

Nowhere to Hide: Why the Future of Asset Management Depends on Innovation

Nov 15 2016 | 6:55pm ET

Information technology has reshaped the asset management industry’s periphery,...

 

From the current issue of

Chicago-based independent futures brokerage and clearing firm R.J. O’Brien & Associates (RJO) has hired industry veteran Daniel Staniford as Executive Director, responsible for the firm’s institutional business development in New York and London.

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR