Man Group sees fifth quarter of fund outflows

Michael Bow
Follow Michael
ONE of the world’s biggest hedge funds, Man Group, shed client money for the fifth consecutive quarter this summer, as investors continued to turn their back on alternative strategies, according to results published yesterday.

Shares in the group crashed nearly ten per cent yesterday to close down 83.4p on the results, as Man continues its push to turn the firm around.

Clients pulled out a net $2.2bn over the three months to the end of September, compared with $1.4bn the previous quarter, and the company warned yesterday that there were few signs of improvement.

Assets under management for Man, which bought funds firm FRM in July, grew by 14 per cent to $60bn, mainly due to an $8.3bn boost from FRM assets.

The performance of its quantitative arm AHL, which accounts for about 65 per cent of the firm’s revenues, stabilised after a torrid time between February and June.

AHL made large gains in the financial crisis but lost 6.4 per cent last year. This year it has fallen 0.6 per cent.

Peter Clarke, Man chief executive, said: “The flow environment continues to be challenging and this was reflected in lower sales in the quarter. Investor sentiment, and consequently the outlook for flows, continues to be subdued.”

Man, a former FTSE100 member, has been shedding assets since the credit crisis in a bid to boost its performance. In July, the firm announced another $100m a year of cost cuts, bringing savings since 2010 to $250m.