Man Group have released their trading statement for the quarter ended 30 September 2017. Among the key points:
- Funds under management (FUM) of $103.5 billion at 30 September 2017 (30 June 2017: $95.9 billion), up 28% year to date;
- Other movements of positive $0.6 billion;
- Positive FX movements of $0.9 billion in the quarter, primarily driven by the weakening of the US Dollar against the Euro and Sterling;
- Positive investment movement of $3.3 billion in the quarter;
- Net inflows in the quarter of $2.8 billion, driven by strong inflows into alternative risk premia and emerging market debt strategies;
- Decision to absorb research costs for the majority of Man’s business following MiFID II implementation in January 2018. Estimated 2018 PBT impact is $10-$15 million, including the previously highlighted administration costs;
- Intention to repurchase up to $100 million of shares; continue to review further potential acquisition opportunities;
- ICAAP was submitted in August. FCA have informed it will not be reviewed at this time. Surplus regulatory capital at 30 September 2017 was around $375 million and is around $275 million pro-forma including the impact of the proposed share repurchase.
Luke Ellis, Chief Executive Officer of Man Group, said: “The third quarter of 2017 was a period of strong alpha generation for Man, with positive performance across the firm. As expected the pace of inflows and the level of margin compression both moderated during the quarter. Inflows remained strong overall and were focussed on some of our newer strategies, in particular alternative risk premia. We devote significant efforts to developing innovative solutions, and we are pleased to see our clients’ enthusiasm for these newer offerings. Looking forward we continue to see a decent level of interest from clients, with our normal caveat that flows are likely to be uneven quarter to quarter.”
Read the statement here.