Media. News and press releases from across Man Group.

31 July 2019

Key points

• Funds under management (FUM)¹ up 5% to $114.4 billion (31 December 2018: $108.5 billion)
  • Positive investment movement of $6.8 billion (H1 2018: negative $1.7 billion)
  • Net outflows of $1.1 billion (H1 2018: net inflows $8.3 billion)
  • Positive FX translation and other movements of $0.2 billion (H1 2018: negative $2.0 billion)
• Adjusted profit before tax (PBT)¹ up 3% to $157 million (H1 2018: $153 million)
  • Adjusted management fee PBT¹ of $83 million (H1 2018: $120 million) incorporating non-operating impacts of $21 million from the FX hedge and the adoption of IFRS 16, as well as no associate income following the sale of our stake in Nephila in 2018
  • Adjusted performance fee PBT¹ of $74 million (H1 2018: $33 million)
• Adjusted earnings per share (EPS)¹ up 6% to 8.6 cents (H1 2018: 8.1 cents) reflecting:
  • Higher performance fees and seed investment gains
  • Positive impact of a lower share count following share buybacks
  • Decline in the net management fee margin from 71 to 68 basis points reflecting strong growth in lower margin strategies
• Statutory PBT of $110 million (H1 2018: $90 million); Statutory EPS of 5.8 cents (H1 2018: 4.6 cents) with the increase reflecting the adjusted EPS growth drivers above and lower adjusting items
• Asset weighted underperformance versus peers¹ of 1.1% for the six months to 30 June 2019 (outperformance of 1.0% for the year ended 31 December 2018)
• Interim dividend of 4.7 cents per share (H1 2018: 6.4 cents per share)
• Corporate reorganisation successfully completed in May providing more flexibility in financing the business; $150 million Tier 2 notes will be redeemed in full on 16 September 2019

Luke Ellis, Chief Executive Officer of Man Group, said:

“Absolute performance was strong in the first half of 2019, particularly in our quant alternative strategies, which drove a $5.9 billion increase in FUM and growth in profits. Relative performance and flows were more mixed with outperformance and inflows into our quant alternative strategies and underperformance and outflows from our valuation biased strategies, with clients continuing to reduce their equity exposure coming into the third quarter.

We enter the second half of 2019 with good performance fee earning potential with 90% of Man AHL strategies at high water mark and the diversified nature of our business means that we remain well positioned to navigate the current economic environment. We continue to focus on delivering superior risk adjusted performance for our clients and, in doing so, creating long-term value for our shareholders.”

1 For definitions and explanations of our alternative performance measures, please refer to pages 34-39