29 May 2008
The outlook for financial markets remains uncertain and periods of higher volatility may return. Against this backdrop, investors are likely to increase their focus on the long term benefits of diversification into non-traditional assets.
Profit before tax from continuing operations up 60% to $2,079 million, driven by a 161% increase in net performance fee income to $936 million and a 21% increase in net management fee income to $1,143 million
- Diluted earnings per share on continuing operations up 63% to 90.2 cents
- Post-tax return on equity on continuing operations of 41.6% (2007: 32.2%)
- Proposed final dividend of 24.8 cents, making a total dividend for the year of 44.0 cents (2007: 20.0 cents).
- Funds under Management of $74.6 billion at 31 March 2008, up 21%. Private investors accounted for 58% of FUM; institutional investors 42%
- Sales of $15.9 billion, equalling last year’s record level. 51% of sales were to institutional investors and 49% to private investors
- Redemptions of $10.7 billion, maintaining significantly lower levels than the industry average
- $5.6 billion of performance generated for investors, principally from AHL
- Acquisition of 50% interest in Ore Hill to create a leading multi-strategy credit business
- Funds under Management up to around $78.5 billion since year end, driven by positive investment performance, the recently launched $1 billion Asian fund and institutional business won in the US.
Peter Clarke, CEO of Man Group, said:
“These results are a strong testament to the strength and resilience of Man’s business model in our 225th anniversary year. We have generated positive returns for our investors, recorded pre-tax profits of over $2 billion for our shareholders, and invested in the business.
“Our strength is in our wide range of investment management capabilities combined with conservative product structures, both of which have allowed us to perform for our investors through some of the most turbulent markets in recent memory. With our product breadth and wide geographical presence, we are able to access the changing patterns of global wealth accumulation and continue to grow our business.
“In the first two months of the current year we have seen strong growth in Funds under Management, with positive performance and sales growing assets by $4 billion to an estimated $78.5 billion.”