Media. News and press releases from across Man Group.

25 February 2015

Key points

• Fund under Management (FUM) up 35% to $72.9 billion (31 December 2013: $54.1 billion)
  • Gross sales up 36% to $21.9 billion (2013: $16.1 billion)
  • Redemptions down 6% to $18.6 billion (2013: $19.7 billion)
  • Net inflows of $3.3 billion (2013: net outflows $3.6 billion)
  • Investment movement of $3.6 billion (2013: $4.3 billion)
  • FX translation effects and other movements of -$4.3 billion (2013: -$3.6 billion)
  • Acquisition of Numeric (a US based quant manager) and Pine Grove (a US based fund of fund credit manager) completed during the year, adding $16.2 billion to FUM
• Adjusted profit before tax (PBT) up 62% to $481 million in 2014 (2013: $297 million) due to:
  • Higher performance fees and cost savings
  • Partially offset by a decrease in management fees linked to a decline in the blended management fee margin due to a change in product and business mix
• Statutory PBT for the year ended 31 December 2014 of $384 million (2013: $56 million)
• $270 million cost savings programme completed ahead of schedule
• Proposed final dividend of 6.1 cents per share bringing total dividend for the year to 10.1 cents (2013: 7.9 cents)
• Intention to repurchase $175 million of shares
• Surplus regulatory capital of $419 million at 31 December 2014 (2013: $760m); $350 million pro-forma for acquisitions, final dividend and share repurchase

Manny Roman, Chief Executive Officer of Man, said:

“2014 marked a year of progress for the Group with strong performance at AHL, a full year of net inflows, the completion of the restructuring programme ahead of schedule and several key acquisitions and hires that have materially enhanced our investment capabilities and our North American business. We saw the benefits from these initiatives as FUM increased by 35% and adjusted profits by 62%.

Despite the strong performance across the AHL range in 2014 we do not expect to see a meaningful pick-up in demand for these products until later in the year, and this, coupled with a slowdown in sales across our discretionary strategies and the ongoing volatility of the markets in which we operate, means that we remain cautious in our near-term outlook.

After the significant progress made against our strategic objectives in 2014, however, we are better positioned as a group to grow our business profitably over time. We have a more diversified offering to clients and a range of attractive options for growth. If we are able to deliver superior risk adjusted returns for our clients, as we were able to in particular in our quantitative business last year, we will be able to leverage our global distribution to grow our assets steadily.”