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Interim results for the six months ended 30 June 2016

26 July 2016

Key points

  • Funds under management (FUM) of $76.4 billion (31 December 2015: $78.7 billion)
    • Net inflows of $1.0 billion (H1 2015: net outflows $2.6 billion)
    • Gross sales of $9.8 billion (H1 2015: $10.5 billion)
    • Redemptions of $8.8 billion (H1 2015: $13.1 billion)
    • Investment movement of negative $2.2 billion (H1 2015: positive $3.8 billion)
    • FX translation and other movements of negative $1.1 billion (H1 2015: negative $1.4 billion)
  • Adjusted profit before tax (PBT) of $98 million (H1 2015: $280 million)
    • Adjusted net management fee PBT of $90 million (H1 2015: $108 million)
    • Adjusted net performance fee PBT of $8 million (H1 2015: $172 million)
  • Adjusted diluted EPS1 of 4.9 cents (H1 2015: 13.9 cents); adjusted diluted management fee EPS of 4.5 cents (H1 2015: 5.4 cents)
  • Statutory PBT of $55 million (H1 2015: $163 million) reflecting acquired intangibles amortisation ($47 million) and other adjusting item charges ($10 million), partially offset by a credit for revaluation of contingent consideration ($14 million); diluted statutory EPS1 of 2.9 cents (H1 2015: 7.5 cents)
  • Surplus regulatory capital2 of approximately $470 million, after adjusting for the interim dividend, H1 2016 profits, and other reserve movements
  • Interim dividend of 4.5 cents per share (H1 2015: 5.4 cents per share)
  • Luke Ellis to succeed Manny Roman as Chief Executive Officer on 1 September 2016

 

Manny Roman, Chief Executive Officer of Man, said:

“The first half of 2016 has been a particularly challenging period for the global investment management industry. The first quarter of the year was a highly volatile period in financial markets. AHL’s momentum strategies performed well, but it was a difficult time for our long only strategies. Markets reversed in the second quarter, and as a result, AHL’s momentum strategies gave back the gains they had made in the first quarter. Recent volatility post-Brexit has benefitted AHL but created a difficult environment again for our discretionary strategies. In the context of this market environment, we had net inflows of $1.0 billion for the half. In particular, we saw good inflows into our quant business from institutional clients, across AHL’s range of strategies and into Numeric.

Looking forward, the outlook, particularly cross border post Brexit, remains uncertain and accordingly the risk appetite of our clients has the potential to impact flows, albeit we have seen no meaningful change so far. The ongoing diversification of our business has enhanced our resilience as a firm and our ability to navigate the current economic environment. We are well-positioned to manage any subsequent regulatory changes, and assuming a stable regulatory environment, we are committed to keeping our headquarters in the UK. As previously indicated, we continue to explore opportunities to grow the business, both organically and by acquisition, to deliver long term value to shareholders.

It has been a great privilege to have led Man Group through a period of evolution and progression for the business; it is an excellent firm and I am sad to be leaving, but I have decided to accept the new, outstanding opportunity at Pimco and move back to the US where my family is based.”

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1 The reconciliation of diluted statutory EPS to adjusted diluted EPS is included in Note 12 to the financial statements (page 29)
2 This is the surplus over the required capital as defined by the FCA

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