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Trading statement for the quarter ended 31 March 2015

08 May 2015

Key points

  • Funds under management (FUM) up 7% to $78.1 billion as at 31 March 2015 (31 December 2014: $72.9 billion)
  • Current FUM estimated at $82.0 billion including $2.4 billion related to the acquisitions of NewSmith and BAML fund of funds
  • Positive investment performance across all our managers added $4.3 billion to FUM in the quarter
    • Good performance across AHL’s range of strategies led to $1.3 billion of positive investment movement in quant alternative strategies in the period
    • Asset weighted outperformance of 137 basis points (before fees) across Numeric’s strategies and performance overall added $0.6 billion to FUM in the quarter
    • Positive performance across GLG’s range of alternative strategies added $0.5 billion to FUM in the period
    • The majority of GLG’s long only strategies had positive investment performance in the quarter, with the main contributor to the positive investment movement of $1.6 billion being the Japan CoreAlpha strategy
    • FRM investment performance added $0.2 billion to FUM
  • Net outflows in the quarter of $1.3 billion, comprising sales of $4.2 billion and redemptions of $5.5 billion
    • Net inflows into quant alternatives ($0.7 billion) and quant long only ($0.3 billion), offset by;
    • Net outflows from discretionary long only ($0.9 billion), discretionary alternatives ($0.6 billion), fund of fund alternatives ($0.6 billion) and guaranteed products ($0.2 billion)
  • FX movements of negative $2.0 billion in the quarter, driven by the strengthening of the US dollar against the Euro (around 11%) and GBP (around 5%)
  • Acquisition of Silvermine completed on 24 January 2015 adding $3.8 billion to FUM
  • Other positive movements of $0.4 billion driven by guaranteed product re-gears of $0.2 billion, $0.2 billion of positive rebalancing at AHL and an additional $0.2 billion from seeding activity; partially offset by product maturities and other movements of negative $0.2 billion

Manny Roman, Chief Executive Officer of Man, said:

“We had a good start to the year from a performance perspective which, together with the latest acquisitions, contributed to an overall 7% increase in FUM over the quarter. AHL’s traditional momentum strategies had a strong first quarter and continue to perform well on a relative basis, returns have improved across GLG’s range of strategies and Numeric’s strategies continue to outperform their respective benchmarks. We are pleased to have completed the Silvermine, NewSmith and BAML fund of funds acquisitions which help to broaden our product offering and US footprint.

Our flows in Q1 reflect a natural lag between better investment performance and higher sales. As we have commented previously, our business is now more institutional in nature, with larger individual mandates causing greater variation in flows on a quarterly basis.

We retain a degree of caution on the outlook for first half flows. As ever, the outlook for the rest of the year will likely depend on performance. Whilst we have a reasonable pipeline of sales, in particular in our quant businesses, recent market volatility reminds us of the uncertain macro environment in which we operate and its potential impact on demand for our products.”

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