Man Group sees bounce back in client assets

Man Group, the world's largest listed hedge fund firm, said client assets rose to $40.5bn (£25.1bn) in the year until the end of September, helped by strong returns from its flagship AHL fund that raise hopes the group can win back investors.

Man, which has bought smaller rival GLG with its $25 billion of assets to help diversify away from computer-driven funds, had estimated in September it was running $39.5bn.

The firm, which has seen eight straight quarters of net outflows even while the wider industry has begun to win back clients after the credit crisis, also said pretax profit for the six months to September before adjusting items was $227m.

This was above the $215m it forecast in September.

Man was boosted by a recovery in flagship fund AHL, which has returned nine per cent from the start of the year to end-September, having fallen 16 per cent last year. This takes it to six per cent below its high-water mark, the level above which it can earn performance fees.