Media. News and press releases from across Man Group.

01 August 2017

Key points

• Funds under management (FUM)¹ of $95.9 billion (31 December 2016: $80.9 billion)
  • Net inflows of $8.2 billion (H1 2016: net inflows $1.0 billion)
  • Investment movement of $3.8 billion (H1 2016: negative $2.2 billion)
  • Aalto acquisition added $1.8 billion
  • FX translation and other movements of $1.2 billion (H1 2016: negative $1.1 billion)

• Run rate net management fees¹ up 6% to $720 million ($677 million at 31 December 2016)

• 7 basis point reduction in the Group run rate net management fee margin¹ compared to 31 December 2016 reflecting strong asset growth in lower margin strategies driving material mix effects at the Group level and in particular two large FRM institutional flows

• Adjusted profit before tax (PBT)¹ of $145 million (H1 2016: $98 million), up 48%:
  • Adjusted net management fee PBT¹ of $94 million (H1 2016: $90 million)
  • Adjusted net performance fee PBT¹ of $51 million (H1 2016: $8 million)

• Statutory PBT of $76 million (H1 2016: $55 million); reflecting acquired intangibles amortisation ($42 million), charges relating to the movement in the contingent consideration liability ($23 million) and restructuring costs ($4 million)
• Statutory diluted EPS of 3.8 cents (H1 2016: 2.9 cents); Adjusted diluted EPS^1,2 of 7.5 cents (H1 2016: 4.9 cents); adjusted diluted management fee EPS^1,2 of 5.0 cents (H1 2016: 4.5 cents)
• Completed around $93 million of the $100m share repurchase programme announced on 14 October 2016 equating to 56.2 million shares
• Interim dividend of 5.0 cents per share (H1 2016: 4.5 cents per share), up 11%

Luke Ellis, Chief Executive Officer of Man, said:

“The first half of 2017 has been one of solid performance with 4% growth in management fee profits and a 48% increase in total adjusted profits as performance fees improved, with positive contributions from across the group. We saw strong inflows from clients during the half and a 19% increase in funds under management with growth across all our investment managers. However our revenue margin has compressed during the half as we have won several large, low margin mandates, meaning our management fees have grown at a much steadier pace.

The first half was unusual in both the scale of net inflows, and the level of margin compression. We would expect both to moderate in the second half, particularly given the uneven nature of institutional flows. As ever, we are committed to seeking opportunities to invest in talent, research and technology. Our priority remains focusing on delivering superior risk adjusted performance for our clients, which will translate into the delivery of value for our shareholders.”