2 August 2013
- Funds under management (FUM) at 30 June 2013 of $52.0 billion (31 December 2012: $57.0 billion), reflecting sales of $6.5 billion, redemptions of -$11.5 billion, investment movement of $2.5 billion, FX translation effects of -$2.4 billion and other movements of -$0.1 billion
- Mixed performance in the six months to 30 June 2013: AHL Diversified Programme -3.2%; GLG Multi-Strategy +5.1%; FRM Diversified II strategy +3.1%; Japan CoreAlpha strategy +41.4%
- Adjusted profit before tax (PBT) of $134 million, comprising adjusted net management fee PBT of $64 million and net performance fee PBT of $70 million
- Statutory profit before tax for the six months ended 30 June 2013 of $122 million
- Adjusted EBITDA of $237 million, with a margin of 41%
- Cost saving programmes remain on track with further efficiencies identified bringing total cost savings to $270 million in aggregate to be delivered by the end of 2015
- Surplus regulatory capital of $990 million at 30 June 2013 (up to $550 million pro-forma for remaining debt buybacks, restructuring charges and interim dividend), subject to ICAAP review by FCA
- Interim dividend of 2.6 cents per share in line with revised dividend policy
Manny Roman, Chief Executive Officer of Man, said:
“While the first quarter of the year benefited from a more stable environment in financial markets, the second quarter was characterised by renewed volatility.
Against this background, Man’s investment performance was varied: good in discretionary and challenging in trend following. In terms of flows, investor appetite remained muted as renewed market volatility tempered investors’ willingness to put their money to work. A sustained improvement in investment performance, particularly from AHL, remains the key prerequisite for an improvement in net flows.
Management remains focused on running the business efficiently. The operating cost savings announced in 2012 have now been executed and during the process further savings have been identified, including some relating to the lower level of the guaranteed book. At the same time, we have continued to invest in people and products, for example building the fixed income and macro platform at GLG and developing successful, high-performing quantitative products, such as Evolution.
Looking forward, trading conditions remain tough and we do not see any improvement in the near-term outlook. However our focus on investment performance, together with the actions we have taken to diversify the Group’s investment management activities, enhance distribution, de-risk our balance sheet and reduce our infrastructure costs mean we are better placed to cope with such circumstances. We intend to continue with this approach but it will take time.”