Man Group as reported a 25 per cent increase in funds under management (FUM) to USD72.3 billion at 30 September 2014 (30 June 2014: USD57.7 billion).
The acquisition of Numeric and Pine Grove added USD16.2 billion of assets, net inflows and performance adding another USD1.3 billion of FUM and negative FX movements reducing FUM by USD2.9 billion
Net inflows in the quarter totalled USD0.4 billion, comprising sales of USD4.5 billion and redemptions of USD4.1 billion with net inflows into quant alternatives and long only strategies being partially offset by net outflows from discretionary alternatives, fund of funds alternatives and guaranteed products.
Man saw an overall investment movement of positive USD0.9 billion in the quarter with positive investment performance in quant alternatives, fund of fund alternatives and discretionary long only being partially offset by negative investment performance in discretionary alternatives and quant long only.
FX translation effects totalled negative USD2.9 billion in the quarter, driven by the strengthening of the US dollar against the Euro (USD1.3 billion), Yen (USD0.8 billion) and Sterling (USD0.5 billion).
Guaranteed product regears of USD0.3 billion were offset by Pemba maturities of USD0.3 billion.
Man completed a USD150 million lower tier 2 debt issuance on 16 September 2014 at a rate of 5.875 per cent giving a current regulatory capital surplus of around USD450 million before planned usage for seeding activity of up to USD75 million.
Manny Roman, chief executive officer of Man, says: “We have continued to make progress against our strategic objectives in Q3 2014, completing the acquisitions of US-based Numeric and Pine Grove and achieving another quarter of net inflows. AHL’s traditional momentum strategies have continued their strong run of absolute and relative performance which led to a significant new institutional mandate and offset the impact of a slowdown in sales at GLG.
“Looking forward, whilst there is a solid sales pipeline in place, and we are seeing increased appetite in long only strategies and for managed accounts, our outlook for flows is mixed and will depend on performance. We continue to focus on delivering superior risk-adjusted returns for clients across the business.”