Man Group shares jump as firm reports net inflows of $3bn in first quarter

 
William Turvill
Follow William
Luke Ellis became chief executive of Man Group last year (Source: Man Group)

Investment management firm Man Group’s shares jumped today as the firm reported net inflows of $3bn (£2.3bn) in the first quarter of this year.

The figures

The company’s funds under management (FUM) at 31 March totalled $88.7bn, up from $80.9bn the year before.

Read more: Man Group disappoints investors

In a first-quarter trading update, Man reported inflows of $1.9bn into its alternatives business, including $1.2bn which went into FRM, its fund of funds. Some $1.4bn flowed into its GLG unit.

Man Group completed the acquisition of property investment firm Aalto Invest in January, which added $1.8bn to FUM.

Man Group Man Group | mobile image

At the time of writing, Man’s share price on the London Stock Exchange is up four per cent to 149.8p.

Why it’s interesting

It marks an improvement on Man’s last figures. The group reported pre-tax losses of $272m for 2016, sending shares down from 146.4p to 141.2p towards the beginning of last month.

Last year saw the appointment of Luke Ellis as chief executive after Manny Roman was poached to join Pimco.

Read more: Man Group completes deal to buy Aalto Invest

What the company said

Ellis said:

The first quarter of 2017 has been a strong period for Man Group, with funds under management increasing by 10 per cent to $88.7bn and growth in each of our investment engines. We came into the year with a good pipeline of interest from clients, and that has resulted in net inflows of $3bn in the first three months. Investment performance increased FUM by $2.2bn for the quarter and the completion of the Aalto acquisition added a further $1.8bn.

Looking forward, the global environment has the potential to create alpha opportunities and we see continuing near-term interest from clients. However, it is important to recognise that this is only one quarter and, as we have said before, flows are likely to vary on a quarterly basis given the institutional nature of our business.

Related articles