At the end of March 2011, the company’s assets under management stood at $69.1bn and fell to $58.4bn by the end of the year. In the fourth quarter alone, the total dropped by $6.1bn from $64.5bn at the end of September.
In the three months to the end of December, Man Group reported sales of $3.1bn, redemptions “eased” to $5.6bn and further negative investment movement of $2.1bn.
Its flagship fund, AHL Diversified, was down 7.7% in the quarter and, according to Morningstar, down by -8.5% for the year. Its three-year annualised numbers are also negative, giving investors a -19% return.
GLG Partners, part of the Man Group since October 2010, saw net outflows of $1bn, mainly from its emerging markets business, UK alpha select and European opportunities styles. There were also $0.4bn of outflows form guaranteed products.
Adding to the stream of negative numbers, the company also reported a fall in its performance fees of $169m in the year to 31 March, 2011, $39m from March to September; and, $35m from March to the end of 2011.
Along with $600m of net cash, it shows $1.6bn of tangible assets and total available liquid assets of $3.2bn. After repurchasing shares and paying an interim dividend, the regulatory capital surplus at year-end was around $850m.
Peter Clarke, chief executive of Man, said: “Trading conditions have been tough for Man in the second half of 2011. Investment performance varied significantly across styles, with market volatility and reduced market liquidity impacting trading opportunities. Although some of our funds performed strongly and sales held up well, we experienced a net outflow in the last two quarters, albeit with reduced redemptions in the final three months.”
