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Interim results for the six months ended 30 June 2015

29 July 2015

Key points

  • Funds under management (FUM) up 8% to $78.8 billion (31 December 2014: $72.9 billion)
    • Gross sales of $10.5 billion (H1 2014: $12.4 billion)
    • Redemptions of $13.1 billion (H1 2014: $9.6 billion)
    • Net outflows of $2.6 billion (H1 2014: net inflows $2.8 billion)
    • Investment movement of $3.8 billion (H1 2014: $0.7 billion)
    • FX translation effects and other movements of -$1.4 billion (H1 2014: $0.1 billion)
    • Acquisitions of Silvermine, NewSmith and Bank of America Merrill Lynch (BAML) fund of funds business completed during the period, adding $6.1 billion to FUM
  • Adjusted profit before tax (PBT) up 89% to $280 million (H1 2014: $148 million)
    • Adjusted net management fee PBT of $108 million (H1 2014: $83 million)
    • Adjusted net performance fee PBT of $172 million (H1 2014: $65 million)
  • Adjusted diluted EPS1 of 13.9 cents (H1 2014: 7.1 cents); adjusted diluted management fee EPS of 5.4 cents (H1 2014: 4.0 cents)
  • Statutory PBT up 54% to $163 million (H1 2014: $106 million) reflecting acquired intangibles amortisation ($45 million), impairment of FRM goodwill ($41 million) and other adjusting items ($31 million); diluted statutory EPS1 of 7.5 cents (H1 2014: 5.0 cents)
  • Completed $175 million share repurchase (59.0 million shares)
  • Surplus regulatory capital of approximately $425 million, after adjusting for the interim dividend and H1 2015 profits
  • Interim dividend of 5.4 cents per share (H1 2014: 4.0 cents per share)

Manny Roman, Chief Executive Officer of Man, said: “While the first quarter of the year saw a more stable environment in financial markets which benefitted all of our strategies and in particular AHL’s momentum strategies, the second quarter was characterised by renewed volatility. As a result AHL’s momentum strategies gave back the gains they had made in the first quarter however GLG, Numeric and FRM’s strategies generated good risk adjusted returns adding to their strong start to the year.

Flows for the half were skewed by $3.4 billion of net outflows from our Japan CoreAlpha strategy as some investors redeemed following a long period of strong absolute and relative performance. We saw solid flows into our quant strategies including one large institutional mandate into AHL, however elsewhere investor appetite remained muted as renewed market volatility tempered investors’ willingness to put their money to work.

Markets remain very challenging and accordingly we remain cautious in our outlook for the remainder of the year. As ever, 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.”

1. The reconciliation of diluted statutory EPS to adjusted diluted EPS is included in Note 12 to the financial statements (page 28)

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