Tuesday, 1 May 2012

Man Group Quarterly Figures – Still Minor Outflows


Man Group Plc announced first quarter 2012 figures today.
31 March 2012 FUM of $59.0bn which represents a 1.0% increase quarter on quarter:
  • 31 Dec 2011 AUM: $58.4bn (as previously reported)
  • Net outflows: $1.0bn
  • Investment movement: $2.0bn
  • FX & other: -$0.4bn 
31 March 2012 FUM by product line:
  • Guaranteed: $9.1bn
  • Open-ended alternative: $25.0bn
  • Institutional FOF: $12.4bn
  • Long only: $12.5bn
There was a net outflow from alternative funds of $1.4 billion and a net inflow of $0.4 billion into long only styles.

Sales of open-ended alternatives were $1.7 billion and redemptions were $2.6 billion. Within this category, AHL had net outflows of $0.7 billion, driven mainly by continuing redemptions from Nomura Global Trend. GLG Alternatives recorded a small net outflow of $0.2 billion, with strong flows into the European long/short style offset by small outflows across a range of other strategies.
 
Performance fees: three-quarters of performance fee eligible GLG FUM at or within 5% of high water mark at end March. Man AHL 14% from peak on a weighted average basis.
Balance sheet: net cash of approximately $250m (down from $573m at 31 Dec). Surplus regulatory capital unchanged at $550m.
Outlook: reduced redemptions but sentiment remains fragile. Yet to see an increase in sales. More de-gearing anticipated - $0.4bn on 1 April and $0.6 on 1 May.
Valuation: Man trades at 5.8x 2012E EBITDA and at 9.8x 2012E adjusted diluted EPS.

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