27 May 2010
Key points - Financial
- Profit before tax of $541 million (2009: $743 million)
- Diluted earnings per share of 24.8 cents (2009: 28.4 cents)
- Regulatory capital surplus of $1.5 billion; net cash balances of $1.7 billion
- Board confirms that it will recommend a final dividend of 24.8 cents per share for the year ended 31 March 2010, giving a total dividend of 44 cents per share for the year
- As announced on 17 May 2010, Board intends to rebase the dividend to a sustainable level, and to adopt a progressive dividend policy henceforward. Board intends to recommend a total dividend of at least 22 cents per share for FY 2011
|Net management fee income||462||885|
|Net performance fee income||97||358|
|Profit before tax and adjusting items||560||1,243|
|Profit before tax||541||743|
Key points – Operating
- Funds under management at 31 March of $39.4 billion (31 December 2009: $42.4 billion; 31 March 2009: $46.8 billion)
- Funds under management at 27 May 2010 broadly unchanged from 31 March, with the FX impact of the weak Euro counterbalancing the effects of positive AHL performance
- Trading conditions for the managed futures style have improved, giving positive AHL performance for the calendar year to date
- Announcement on 17 May 2010 of proposed acquisition of GLG Partners, Inc. to create a diversified alternative investment manager, with approximately $63 billion of funds under management and a world-leading position in liquid, transparent strategies
Peter Clarke, Chief Executive of Man, said:
“The last two years have seen significant change in the hedge fund industry, with continued investor focus on transparency and liquidity of investment strategies and on the stability and governance of investment managers. Man has long been focussed through AHL and the Multi-Manager business on providing liquid investment strategies offering diversifying returns for investors. During the year we have taken decisive action to address the changes in our industry, as well as the impacts on our own business of redemptions from institutions seeking liquidity within their portfolios and a period of negative performance at AHL. We have restructured our Multi-Manager business around the transparency and security offered by managed accounts; reduced our run-rate cost base materially during the year; grown our global business in onshore regulated offerings to reflect increasing demand for these products; and continued our investment in AHL to generate a strong research pipeline and enhanced trading benefits.
“Against this backdrop we have seen a fall in both assets under management and profits in the year. We start the current year at this lower level of assets under management and with AHL still some distance away from performance fee high water marks. However, recent AHL performance has been positive despite the volatility and uncertainty of markets, and we have won new institutional mandates in our Multi-Manager business of $1.5 billion which will be funded over the coming months and are not yet reflected in our assets.
“On 17 May, we announced the proposed acquisition of GLG. This transaction comprehensively addresses our stated ambition of acquiring high quality discretionary investment strategies which are liquid, transparent and have a low correlation to AHL performance. The two firms are very complementary in terms of the location and type of their investors, and the transaction will combine the strength of Man's distribution franchise with GLG's wide range of liquid strategies, either in stand-alone format or in conjunction with Man's existing investment capabilities. The combination will create one of the largest investment managers in liquid alternative strategies and offer access to a comprehensive set of investment opportunities across a global investor base."