7 Jul 2011
Man Group saw net inflows of $3.7 billion in the quarter, reflecting record sales of $9.0 billion and redemptions consistent with historical levels, at $5.3 billion. There was a net inflow into alternative funds of $4.1 billion and an outflow of $0.4 billion from long only styles.
Guaranteed products saw their highest sales for two years, at $0.5 billion, driven by the launch of Man IP 220 GLG, the first guaranteed product to combine AHL and GLG styles. Guaranteed redemptions held steady at $0.6 billion.
Sales of open-ended alternatives were a record $6.2 billion and redemptions were $2.0 billion. Within this category, AHL sales of $2.9 billion reflect the recent launch of the first onshore open-ended managed futures product in Japan, which now has $2.3 billion under management. GLG sales accelerated to $3.3 billion with strong flows into equity long/short and emerging markets styles, largely in Europe. The $1 billion raised from an emerging markets currency product in Japan – a territory where GLG had very few investors before its integration into Man – provides tangible evidence of the benefits of combining GLG content with Man’s strong distribution network.
Net flows into institutional fund of funds were flat, with sales of $0.8 billion driven by demand for commodity and convertible style funds, as well as a small amount of funding to previously announced managed account mandates. $2 billion is still to fund from previously announced mandate wins at Universities Superannuation Fund and Bayerische Versorgungskammer. Quarterly institutional redemptions on 1 July 2011 are around $470 million.
Long only styles saw sales of $1.5 billion and redemptions of $1.9 billion. The majority of this flow reflects the migration of Japan Core Alpha FUM from a legacy low margin mandate to other higher margin vehicles.
Investment performance had a $1.1 billion negative effect on FUM in the first quarter.
AHL Diversified plc was down 0.6% in the three months to 30 June 2011, leaving AHL approximately 12% below peak on a weighted average basis. AHL has remained defensively positioned in bonds, but has significantly reduced its short exposure to equities. In FX, its prevalent exposure has been to be long a basket of currencies against the US dollar. Over the period, AHL has seen flows-driven asset growth of 5%.
Performance for GLG's range of alternative investment styles was generally negative in the quarter, with the Global Opportunity Fund (which allocates across GLG strategies) down approximately 2%. Returns in the period ranged from positive performance in European long short and European distressed to negatives in global macro and other long short strategies. Performance in long only styles was broadly flat in the quarter.
FX generated a positive contribution of $0.8 billion in the first quarter, mainly due to the strengthening of the Euro, Swiss Franc and Japanese Yen against the US dollar.
The routine rebalancing of investment exposure in guaranteed products led to a negative $1.8 billion of other movements, driven by 5.4% of negative performance from AHL in the rebalancing period.
Guaranteed products saw their highest sales for two years, at $0.5 billion, driven by the launch of Man IP 220 GLG, the first guaranteed product to combine AHL and GLG styles. Guaranteed redemptions held steady at $0.6 billion.
Sales of open-ended alternatives were a record $6.2 billion and redemptions were $2.0 billion. Within this category, AHL sales of $2.9 billion reflect the recent launch of the first onshore open-ended managed futures product in Japan, which now has $2.3 billion under management. GLG sales accelerated to $3.3 billion with strong flows into equity long/short and emerging markets styles, largely in Europe. The $1 billion raised from an emerging markets currency product in Japan – a territory where GLG had very few investors before its integration into Man – provides tangible evidence of the benefits of combining GLG content with Man’s strong distribution network.
Net flows into institutional fund of funds were flat, with sales of $0.8 billion driven by demand for commodity and convertible style funds, as well as a small amount of funding to previously announced managed account mandates. $2 billion is still to fund from previously announced mandate wins at Universities Superannuation Fund and Bayerische Versorgungskammer. Quarterly institutional redemptions on 1 July 2011 are around $470 million.
Long only styles saw sales of $1.5 billion and redemptions of $1.9 billion. The majority of this flow reflects the migration of Japan Core Alpha FUM from a legacy low margin mandate to other higher margin vehicles.
Peter Clarke, Chief Executive of Man, said: “We are pleased to be reporting strong net inflows from investors over the last quarter. Following the successful integration of GLG at the end of 2010, we are seeing revenue synergies building, with investor flows into AHL, GLG strategies, and combination products.
“Current markets are creating challenging performance conditions for most asset classes, and our assumption is that investor sentiment will remain patchy over the summer months. The combination of our broad range of liquid investment styles, ability to craft portfolio solutions for investors, and the wide geography of our franchise, is a key advantage in these markets."
Investment performance had a $1.1 billion negative effect on FUM in the first quarter.
AHL Diversified plc was down 0.6% in the three months to 30 June 2011, leaving AHL approximately 12% below peak on a weighted average basis. AHL has remained defensively positioned in bonds, but has significantly reduced its short exposure to equities. In FX, its prevalent exposure has been to be long a basket of currencies against the US dollar. Over the period, AHL has seen flows-driven asset growth of 5%.
Performance for GLG's range of alternative investment styles was generally negative in the quarter, with the Global Opportunity Fund (which allocates across GLG strategies) down approximately 2%. Returns in the period ranged from positive performance in European long short and European distressed to negatives in global macro and other long short strategies. Performance in long only styles was broadly flat in the quarter.
FX generated a positive contribution of $0.8 billion in the first quarter, mainly due to the strengthening of the Euro, Swiss Franc and Japanese Yen against the US dollar.
The routine rebalancing of investment exposure in guaranteed products led to a negative $1.8 billion of other movements, driven by 5.4% of negative performance from AHL in the rebalancing period.
