25 September 2007
Net management fee income will be up by over 15% on the first six months to 30 September 2006, driven by the growth in funds under management. Net performance fee income will be ahead of the level achieved in the comparable period last year. Diluted earnings per share on continuing operations are expected to be up by over 10%*.
Sales for the first half year are estimated to be $7.8 billion, of which guaranteed products accounted for $3.2 billion; open-ended private investor sales for $1.0 billion; and institutional sales for $3.6 billion. Private investor redemptions were $2.1 billion and institutional redemptions were $2.2 billion.
Reflecting the level of sales, funds under management have risen and are currently $68 billion, up from $61.7 billion at 31 March 2007. The split of funds under management is private investor $41 billion (31 March 2007: $36.6 billion) and institutional $27 billion (31 March 2007: $25.1 billion).
Peter Clarke, Group Chief Executive of Man Group, commented:
"These results demonstrate the resilience of Man's business. Strong demand for our product offerings generated sales in the period of $7.8 billion. The diversification of our investment styles, despite recent turbulence in financial markets, has generated $2.4 billion of positive performance for our investors in the first half. Today the majority of our assets are within 5% of performance fee high water marks. Redemption rates are virtually unchanged on the prior year. Accordingly, assets under management have advanced to $68 billion. First half net management fee income will be up by over 15% and net performance fee income will be ahead of the level achieved in the comparable period last year.
Our conservative approach both to portfolio construction and product leverage meant that none of our structured products has had to degear in the period. We believe that the Group's capital strength will remain a key competitive advantage through the coming period. Furthermore, the current market environment creates opportunities for investment. Accordingly, Man remains very well placed for further growth.
Since the financial year end, we have returned $770 million to our shareholders through a combination of the final dividend ($250 million) and share repurchases ($520 million).
Additionally, the Group remains committed to return to our shareholders the net proceeds of the successful IPO of MF Global of approximately US$2.8 billion, which implies a distribution of approximately 140 cents per share, in cash. This is intended to be through a B and C share arrangement, which allows shareholders to elect for either a capital or income receipt, or a combination of both. The arrangement is subject to shareholder approval at an EGM, concurrent with a share consolidation reflecting the return of value. The distribution is expected to take place before the end of the calendar year."
Man Group will announce its interim results on 8 November 2007.