Man Group hit by more client outflows

 
City A.M. Reporter
Man Group, the world's biggest listed hedge fund manager, reported a second consecutive quarter of heavy client outflows and announced plans for further cost cuts, as nervous investors pulled out of its poorly-performing funds.

The firm, which shocked investors in September when it reported its fastest rate of outflows since early 2009, said clients pulled out a net $2.5bn (£1.6bn)over the three months to end-December, roughly in line with analyst forecasts.

The firm also said it would cut an extra $75m from costs, on top of previously-announced savings of $40.

Man, whose share price has slumped from around 300 pence a year ago to 107 pence at Tuesday's close, said total assets under management fell to $58.4bn at end-December from $63.5bn at end-October.

While fund managers have seen clients exit as Europe's debt crisis hits financial markets, Man has also been hindered by the performance of some funds in its GLG unit, which it bought for $1.6 billion in 2010, while its flagship $21 billion computer-driven fund AHL lost 6.4 percent in 2011.

Man also said that GLG founder Noam Gottesman has stood down as co-CEO of GLG and taken the role of non-executive chairman of GLG's business and interests in the U.S