Media. News and press releases from across Man Group.

Interim management statement for the quarter ended 31 March 2013

3 May 2013

Key points - operating

  • Funds under management (FUM) at 31 March 2013 of $54.8 billion (31 December 2012: $57.0 billion)
  • Positive investment movement of $2.8 billion in the quarter:
    • AHL Diversified programme up 4.2% in the quarter. As of 29 April 2013, AHL Diversified programme is up 10.4% for the year to date and AHL open ended FUM of $9.5 billion is approximately 4.5% away from high water mark on a weighted average basis with over
      70% at or within 5% of high water mark
    • The majority of GLG alternative strategies had positive performance in the quarter and over 71% of GLG performance fee eligible FUM was at high water mark and 20% was within 5% of high water mark at the end of March
    • GLG long only strategies contributed positive investment movement of $1.6 billion in the quarter with the strongest performance coming from the Japan CoreAlpha fund which was up 24.0%
    • Positive performance at FRM added $0.4 billion to FUM in the quarter
  • Net outflows in the quarter of $3.7 billion, comprising sales of $2.5 billion and redemptions of $6.2 billion
  • FX movements of negative $1.6 billion in the quarter, driven by the strengthening of the US dollar against the Yen, Euro and Sterling
  • Other movements of $0.3 billion driven by guaranteed product regears of $0.5 billion partially offset by institutional product maturities and other movements of $0.2 billion
  • Previously announced cost saving programmes remain on track

 

Key points - capital

  • To optimise the efficiency of the Group’s capital and liquidity structure, we intend to call or redeem, with cash, all tier 1 hybrid, tier 2 and senior debt securities (subject to bondholder consent where necessary)
  • Total annualised pre-tax interest and coupon saving of up to $78 million from 2014. These actions will be slightly accretive to earnings per share after upfront costs in 2013
  • Relative to the Group’s capital position pro forma for CRD IV, these actions will result in a reduction in surplus capital of up to $470 million giving pro forma surplus capital at 1 January 2014 of at least $450 million

 

Manny Roman, Chief Executive Officer of Man, said:

“The world economy still faces significant challenges but with reduced correlation between major asset classes and the reassertion of trends, we have seen a somewhat more stable market environment. Against this background, we saw solid performance across our three investment engines.

However, this was a disappointing quarter from a flows perspective with sales at a similar level to the previous quarter and increased redemptions, chiefly due to the loss of three sizeable low margin mandates.

Investment performance is the lifeblood of our business and in time we expect good performance to translate into flows. However, we remain cautious in our outlook as we will need a more sustained period of performance, particularly from AHL, before we see an improvement in net flows. We continue to make good progress against our key business priorities and the recently announced improvement in our capital position, together with our announcement today of the intended buyback of our debt securities, has delivered value for shareholders.”

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