Media. News and press releases from across Man Group.

Interim results for the six months ended 30 June 2014

01 August 2014

Key points

  • Funds under management (FUM) up 7% to $57.7 billion (31 December 2013: $54.1 billion)
    • Gross sales up 91% to $12.4 billion (H1 2013: $6.5 billion)
    • Redemptions down 17% to $9.6 billion (H1 2013: $11.5 billion)
    • Net inflows of $2.8 billion (H1 2013: net outflows -$5.0 billion)
    • Investment movement of $0.7 billion (H1 2013: $2.5 billion)
    • FX translation effects and other movements of $0.1 billion (H1 2013: -$2.5 billion)
  • Mixed absolute performance in the six months to 30 June 2014: AHL Diversified Programme +8.7%; GLG Multi-Strategy -1.9%; FRM Diversified II +1.4%; Japan CoreAlpha -1.4%
  • Adjusted profit before tax (PBT) up 10% to $148 million (H1 2013: $134 million)
    • Adjusted net management fee PBT of $83 million (H1 2013: $64 million)
    • Adjusted net performance fee PBT of $65 million (H1 2013: $70 million)
  • Adjusted diluted EPS1 of 7.1 cents (H1 2013: 5.7 cents per share); adjusted diluted management fee EPS of 4.0 cents (H1 2013: 2.6 cents per share)
  • Statutory PBT for the six months ended 30 June 2014 of $106 million (H1 2013: $122 million); diluted statutory EPS1 of 5.0 cents (H1 2013: 5.3 cents per share)
  • Acquisition of Numeric (a US based quant manager with $14.7 billion of FUM) on track for completion in Q3 / Q4; Acquisition of Pine Grove (a US based fund of fund credit manager with $1.0 billion of FUM) due to complete shortly
  • Completed $115 million share repurchase at an average price of 99.7p (68.8 million shares)
  • Surplus regulatory capital of $625 million at 30 June 2014, before acquisition-related usage for Numeric and Pine Grove of $345 million
  • Interim dividend of 4.0 cents per share (H1 2013: 2.6 cents per share)

Manny Roman, Chief Executive Officer of Man, said:

“In the first half of 2014, we made progress towards our strategic objectives taking significant steps to position the firm for future growth and largely completing our restructuring process. We were delighted to announce the planned acquisitions of Numeric and Pine Grove in June, two highly complementary businesses which will enhance our offering for clients and increase our geographical footprint in the US.

Whilst it has been a positive first half for the firm and we recorded another quarter of net inflows in Q2, we remain cautious as we look to the second half of the year. Investment performance in H1 was mixed amid a continued volatile market environment. AHL performed strongly on an absolute and relative basis across all its alternative strategies. Performance elsewhere was good in credit and discretionary long only but below expectations in equities and macro.

We remain committed to investing in talent, research and technology and building the optimal environment to deliver superior risk adjusted performance for our clients which will ultimately translate into the delivery of value for our shareholders.”

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