14 October 2016
- Funds under management (FUM) has increased by 6% during the quarter to $80.7 billion at 30 September 2016 (30 June 2016: $76.4 billion)
- Positive investment movement of $2.5 billion in the quarter driven by good performance for GLG and Numeric, partially offset by weaker performance across AHL’s strategies
- Net inflows in the quarter of $1.3 billion, comprising sales of $6.0 billion and redemptions of $4.7 billion, with net inflows into quant alternative, fund of fund alternative, and quant long only, partially offset by net outflows from discretionary alternatives and long only
- FX translation effects were flat in the quarter
- Other positive movements of $0.5 billion with positive investment exposure adjustments of $0.6 billion, partially offset by CLO maturities
- Acquisition of Aalto, a real asset focused investment manager with $1.7 billion of funds under management, is due to complete in January 2017 subject to regulatory approvals and other customary conditions
- Man Global Private Markets business is launched with the acquisition of Aalto, which will provide clients with access to longer term investments
- Intention to repurchase up to $100 million of shares; we will continue to review further potential acquisition opportunities
- Surplus regulatory capital of $470 million at 30 September 2016; around $300 million pro-forma including the impact of acquisition and share repurchase
Luke Ellis, Chief Executive Officer of Man, said:
“In a difficult market environment, we are pleased to report a $4.3 billion increase in funds under management in the quarter driven by a positive investment movement of $2.5 billion and net flows of $1.3 billion. There was good investment performance across both alternative and long only strategies at GLG and Numeric, offsetting negative performance among some of AHL’s strategies this quarter, as the market proved more difficult for trend following strategies. The net inflows were driven largely by the appetite of institutional clients for our quant alternative and quant long only strategies.”
Acquisition of Aalto and launch of Man Global Private Markets
Man announced today that it has entered into an agreement to acquire the entire issued share capital of Aalto Invest Holding AG and launched Man Global Private Markets, forming the firm’s private market offering, which provides clients with access to longer term investments.
Full details of the transaction and the launch of the Man Global Private Markets business are provided in a separate announcement released this morning.
Man’s dividend policy is to pay at least 100% of adjusted management fee earnings per share in each financial year by way of ordinary dividend. In addition, the Group expects to generate significant surplus capital over time, primarily from net performance fee earnings. Available surpluses, after taking into account required capital (including accruals for future earn-out payments), potential strategic opportunities and a prudent buffer, will be distributed to shareholders over time, by way of higher dividend payments and/or share repurchases. Whilst the Board continues to consider dividends as the primary method of returning capital to shareholders, it will continue to execute share repurchases when advantageous.
In line with this policy it is our intention to launch a share repurchase programme for up to $100 million to return surplus capital to shareholders, which will be conducted over the next 12 months.