Media. News and press releases from across Man Group.

Pre-Close Trading Update and FUM Statement

26 March 2009

  • Profit before tax and exceptional items* of an estimated $1.2 billion (2008: $2.1 billion)
  • Diluted earnings per share before exceptional items* of about 54 cents (2008: 90.2 cents)
  • Board intends to declare a maintained final dividend of 24.8 cents per share, giving a total dividend for the year of 44 cents per share
  • Funds under management currently estimated at $47.7 billion (31 December 2008: $53.3 billion; 31 March 2008: $74.6 billion)
  • Fund performance ahead of industry benchmarks for the financial year to date: AHL +14.4%; RMF -13.1% vs HFRI Fund of Funds Composite -17.5%
  • Private investor sales of an estimated $11.1 billion; net inflows of an estimated $2.0 billion
  • Institutional sales of an estimated $3.7 billion; net outflows of an estimated $4.2 billion
  • Regulatory capital surplus preserved at over $1.5 billion; cash increased to around $2.2 billion; undrawn banking facilities of $2.4 billion (25% maturing 2012; 75% maturing 2013)
  • Run-rate of fixed costs reduced by $60 million per annum with effect from 1 April 2009
  • Launch of an integrated hedge fund management business, built on RMF’s disciplined investment process, Glenwood’s manager selection philosophy and Man’s managed account expertise to provide transparent access to hedge fund investing for institutions and private investors worldwide. #

Key financials

  Estimates for year ending 31-Mar-09 $m Estimates for year ended 31-Mar-08 $m
Net management fee income 850 1,143
Net performance fee income 340 936
Profit before tax and exceptional items 1,190 2,079
Exceptional items*

-107(H1)

-390(H2)

 

A conference call for investors and analysts will be held at 08:00 GMT this morning: access numbers are included at the end of this release. Man Group will announce its year-end results for the financial year on 28 May 2009.

Peter Clarke, Chief Executive of Man Group, said:

"This has been a very difficult year for global markets, and our business has not been immune. We have responded by focussing on preserving our strong investment management franchise, whilst also maintaining and building the firm's financial strength, both key differentiators in these markets.  Our strong financial position is reflected in the intention to declare a maintained final dividend for the year.

“During the year we continued to see private investor demand for conservatively structured products offering transparency and liquidity, and which have demonstrated a track record of performance through these markets. Our long standing leadership in the managed futures style has provided both performance and liquidity, whilst the flexibility of our product range and wide geography of investor base have remained a key strength. In this way we have been able to maintain a pipeline of global and regional products, which is continuing over the coming months. However, we have seen a reduction in funds under management and many investors, particularly institutions, have sought liquidity regardless of performance and reduced their exposure to all asset classes.

“We are focussed on meeting the evolving investor requirements for hedge fund investing and I am very pleased to be announcing today the establishment of a new Man investment business.  This unites Man's scale and expertise to provide transparent and flexible access to underlying investment styles through an industry leading managed account platform and tailor made products. Combining the components of Man's business and geography in this way creates a unique opportunity for our investors to access hedge fund investments in the format of their choice.

“We have also reviewed efficiency and costs across the business and have reduced fixed costs by $60 million for the coming financial year.  Our leading position in the industry, together with the initiatives announced today, provides a solid platform for balanced and profitable growth in market share."

* H1 exceptional item relates to accelerated amortisation of MGS sales commissions ($107 million). H2 items include impairment provisions relating to Ore Hill and the residual holding in MF Global (c. $350 million) and non-recurring restructuring costs (c. $40 million).
# Subject of a separate press release.

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