Man’s interim management statement for the three months ending 30 Sept, 2012 show net outflows were up from the $1.4bn reported in the second quarter.
The firm added that outflows were concentrated in lower margin product lines such as GLG long only portfolios and institutional funds of funds. GLG, which Man bought in 2010 in a $1.6bn deal, accounted for $400m of net outflows.
Man CEO Peter Clarke said: "The flow environment continues to be challenging and this was reflected in lower sales in the quarter.
“Redemptions were in line with the levels experienced in the second quarter which resulted in increased net outflows, albeit in lower margin product lines. Investor sentiment, and consequently the outlook for flows, continues to be subdued.”
The group’s funds under management rose 14% over the quarter, from $52.7bn to $60bn. This was buoyed by the acquisition of fund of funds company FRM in July, which added $8.3bn.
Man’s shares have tumbled more than 70% since the start of last year as investors became concerned by outflows and weak performance.
The company has fought back, aiming to make cost savings totalling $250m and replacing finance director Kevin Hayes with Jonathan Sorrell, helping its shares to rise 12% since the start of July.
Clarke said Man is on track to deliver its cost savings: “Our focus remains on delivering performance for our investors and improving efficiency.”
