Man Group hit by client withdrawals

City A.M. Reporter
HEDGE fund firm Man Group’s assets under management have dropped eight per cent to £26.8bn since December, as investors continue to withdraw money after poor fund returns.

The firm, which last week announced a surprise deal £1.1bn deal to buy smaller rival GLG Partners, said clients withdrew £3.1bn over the year to the end of March.

Man Group has now seen six straight quarter of investor outflows.

Profit for the year to end-March dropped 27 per cent to £373m ahead of the company's forecast of £365m in March but slightly below analyst estimates of £377m.

The firm, whose assets were roughly double current levels two years ago but tumbled during the credit crisis, has been hindered by the poor returns from its flagship AHL fund, which is down 3.7 per cent over the past year.

"Man's proposed acquisition of GLG will further strengthen the company's competitive positioning and Man will continue to build upon these foundations, with a strong expectation over the coming years that it will grow assets and market share," the firm said in the statement.

It said its expectations for 2011 "remain measured."