3 Nov 2011
Man Group has reported that funds under management fell a further $1 billion in October to $63.5 billion from $64.5 billion at Sep 30. Profit before tax on continuing operations for the six months to end-Sep were $154 million compared to a pre-close estimate of $145 million made in early October.
The funds under management at 30 Sep were down from 31 March when they were $69.1 billion. This reflected inflows of $1 billion, investment movement of -$2.5 billion, FX translation effects of -$1.4 billion and other movements of -$1.7 billion.
Man reported that investor redemptions in October were below levels seen in September. It also reported that a further de-gearing of guaranteed product de-gear resulted in an outflow of $800 million on 1 November.
The interim dividend was maintained at 9.5 cents per share. Man said the final dividend for the three months to 31 December is expected to be 7.0 cents per share, to give a maintained pro-rated dividend for the nine month period. Additional capital is being returned by way of a share repurchase of up to $150 million by the calendar year end.
The Group had approximately $1 billion of surplus regulatory capital at 30 September, net cash of $733 million and total liquidity resources of $3.4 billion. Moody’s, S&P and Fitch have all reconfirmed Man’s long term credit ratings with stable outlooks.
Man said it continues to consider the dividend as the primary method of making distributions to shareholders. With further returns of surplus capital, Man said it would apply the same financial criteria as for business investment opportunities.
Man’s share price rallied nearly 4% to 146.6 pence following the results. But it remains near 52 week lows and at around half the price of one year ago.
The funds under management at 30 Sep were down from 31 March when they were $69.1 billion. This reflected inflows of $1 billion, investment movement of -$2.5 billion, FX translation effects of -$1.4 billion and other movements of -$1.7 billion.
“The last six months began with record sales, but ended with a spike in redemptions as extreme volatility severely tested investor risk appetite in the late summer,” said Peter Clarke, Chief Executive. “Since period end we saw reduced redemptions in October, and we ended the month with around $63.5 billion under management. Liquid, diversifying returns are at the core of our offer to investors, and our broad range of alternative investment strategies produced overall outperformance in tough trading conditions.”
Man reported that investor redemptions in October were below levels seen in September. It also reported that a further de-gearing of guaranteed product de-gear resulted in an outflow of $800 million on 1 November.
The interim dividend was maintained at 9.5 cents per share. Man said the final dividend for the three months to 31 December is expected to be 7.0 cents per share, to give a maintained pro-rated dividend for the nine month period. Additional capital is being returned by way of a share repurchase of up to $150 million by the calendar year end.
The Group had approximately $1 billion of surplus regulatory capital at 30 September, net cash of $733 million and total liquidity resources of $3.4 billion. Moody’s, S&P and Fitch have all reconfirmed Man’s long term credit ratings with stable outlooks.
Man said it continues to consider the dividend as the primary method of making distributions to shareholders. With further returns of surplus capital, Man said it would apply the same financial criteria as for business investment opportunities.
“We remain focused on investment performance and profitable asset growth worldwide, but also on operational efficiency,” said Clarke. “Actions taken so far this year have secured $40 million of savings for 2012 from our debt repurchase and outsourcing initiatives. We are planning on the basis that investor appetite will remain subdued whilst markets remain volatile and uncertain, but are well positioned to capture demand when sentiment improves and investors return to markets.”
Man’s share price rallied nearly 4% to 146.6 pence following the results. But it remains near 52 week lows and at around half the price of one year ago.
