HEDGE fund manager Man Group surprised the market with a mixed results update yesterday, meeting some targets but missing others and writing off $375m (£234m) in impairments.
Man will hold $69bn in funds under management at the end of March, above forecasts of $68bn, but has attracted just $700m (£437m) in net fund inflows in the current quarter, below expectations of $1.2bn.
Its pre-tax profit of $560m is reduced to $280m once a $375m goodwill impairment charge from its multi-manager business is included, it said in its pre-close trading update.
The $560m was exactly in line with consensus analyst forecasts and the same as it made in 2009, it said. The impairment charge was due to expectations of lower sales in that division.
Chief executive Peter Clarke said Man had “fundamentally reshaped” its business in the period.
The world’s largest listed hedge fund group has returned to positive fund inflows after two years of net outflows following poor performances in its computer-programme-driven funds. It said its $1.6bn acquisition of rival GLG, was designed to make it less reliant on both Man AHL, its computer-based business as well as revenues from its stake in successful niche fund manager BlueCrest.
Its sale last week of its 25.5 per cent BlueCrest stake back to the company has pushed its regulatory capital to $850m while net cash grows to $900m, it said.
Performance fee income came in ahead of estimates at $145m, but less volatile management fee income was lower than expected at $415m.
Singer Capital analyst Sarah Ing said the statement contained “mixed messages”.