Media. News and press releases from across Man Group.

28 February 2018

Key points

• Funds under Management (FUM)¹ up 35% to $109.1 billion (31 December 2016: $80.9 billion)
  • Net inflows of $12.8 billion (2016: net inflows $1.9 billion)
  • Positive investment movement of $10.7 billion (2016: $3.2 billion)
  • Aalto acquisition added $1.8 billion
  • FX translation and other movements of $2.9 billion (2016: -$2.9 billion)
• 11 basis point reduction in the Group net management fee margin¹ compared to 2016 driven by strong FUM growth in lower margin strategies. Group run rate net management fee margin¹ of 72 basis points at 31 December 2017
• Net revenues increase by 33% reflecting good absolute performance fee generation and 7% growth in net management fee revenue
• Adjusted profit before tax (PBT)¹ of $384 million in 2017 (2016: $205 million),
  • Adjusted net management fee PBT of $203 million (2016: $178 million)
  • Adjusted net performance fee PBT of $181 million (2016: $27 million)
• Statutory PBT for the year ended 31 December 2017 of $272 million (2016: statutory loss before tax of $272 million)
• Recommended final dividend of 5.8 cents per share bringing total dividend for the year to 10.8 cents per share (2016: 9.0 cents). The final dividend is equal to 4.18 pence per share (2016: 3.62 pence), and the total dividend for the year is equal to 7.97 pence per share (2016: 7.05 pence)
• Proforma surplus regulatory capital of $460 million adjusted for second half earnings, our final dividend and receipt of cash for year end performance fees and redemption of our largest seeding investment. We estimate the adoption of the new leases accounting standard which will apply from 1 January 2019 will reduce that surplus capital by up to £90m ($120 million)

Luke Ellis, Chief Executive Officer of Man, said:

“2017 was a strong year for our business. The record net inflows of $12.8 billion reflected not only the outperformance we delivered for clients, but also our focus on deep client relationships. Our FUM grew by 35% and this, combined with the strong investment performance and our focus on running the business in an efficient and effective manner, led to excellent profit growth, with an 87% increase in adjusted profits.

In common with others, the recent moves in markets have impacted our investment performance in some areas, particularly for our momentum strategies. However, looking forward Man is well positioned, with strong fundamentals, investment in innovative strategies and a continuing pipeline of interest from clients. As ever, we remain focused on delivering long term investment performance and the highest quality service to our clients.”

1 For definitions and explanations of our alternative performance measures, please refer to the press release, page 52.