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Hedge Funds

Man Group AUM soars 28% in year

Man Group CEO Luke Ellis says the third quarter saw ‘strong alpha generation.’

Man Group's assets under management rose 28.3% to $103.5 billion in the year ended Sept. 30.

In the quarter ended Sept. 30, firmwide assets rose 7.9%, driven by net inflows of $2.8 billion and investment growth of $3.3 billion.

Numeric led growth among Man's five investment units with assets under management up 35% to $30.1 billion in the 12 months ended Sept. 30, Friday's earnings statement from Man Group showed.

During the year, assets managed by FRM in hedge funds of funds, managed accounts and customized approaches rose 31.3% to $16.8 billion; GLG's hedge fund and long-only strategies were up 23.7% to $32.9 billion; and assets in AHL's quantitatively managed hedge funds increased 13.2% to $21.5 billion.

Real assets strategies run by Man Global Private Markets — formerly Aalto Invest Holdings, acquired by Man Group on Jan. 1 with $1.8 billion under management — rose 10% in the three months ended Sept. 30 to $2.2 billion.

The company's statement also noted that Man Group will absorb research costs for most of its businesses following implementation of MiFID II in January 2018. The estimated impact on the firm's 2018 profits before tax is estimated to be between $10 million to $15 million.

"The third quarter of 2017 was a period of strong alpha generation with positive performance across the firm," said Luke Ellis, Man Group's CEO, in the statement.

"As expected, the pace of inflows and the level of margin compression both moderated during the quarter. Inflows remained strong and were focused on some of our newer strategies, (particularly) alternative risk premia," added Mr. Ellis.