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Money Management

Man Group assets inch up in quarter, grow 18.6% for year ended June 30

Luke Ellis stressed that short-term flows ‘are likely to be uneven.’

Man Group's assets under management grew 0.9% for the quarter, 4.2% for the six months and 18.6% for the year ended June 30, to $113.7 billion.

A financial update Wednesday detailing the money manager's half-year figures, said net inflows for the quarter were $3.5 billion, compared with $4.8 billion for the quarter ended March 31. For the half year, net inflows were $8.3 billion, compared with $8.2 billion for the first half of 2017. For all of 2017, Man Group recorded net inflows of $12.8 billion.

Net revenue totaled $486 million, up 5.4% vs. figures for the six months ended June 30, 2017. Full-year 2017 net revenue was $1.1 billion.

Profit before tax was $153 million for the six months ended June 30, up 5.5% vs. the same period in 2017. Profit before tax for full-year 2017 was $384 million.

Investment movements took $1.7 billion from assets under management for the first half of 2018, vs. a positive impact of $3.8 billion for the same period in 2017. Foreign exchange and other effects also lost the firm $2 billion, compared with adding $1.2 billion for the six months ended June 30, 2017.

For the six months ended June 30, the firm's alternatives strategies assets under management grew 6.5% to $65.7 billion, and grew 2.7% for the quarter. Net inflows for the half-year were $6.3 billion and for the quarter were $2.9 billion.

Long-only strategies recorded a 1.5% increase for the six months to $47.9 billion, with net inflows of $2 billion for the period. For the quarter ended June 30, long-only assets under management fell 1.2%, with net inflows of $600 million. FX and other charges took $1.1 billion from long-only assets for the period.

Guaranteed strategies AUM fell 50% for the half-year and for the quarter to $100 million, with negative FX impacts of $100 million.

"Business momentum remains good with solid management fee growth," said Luke Ellis, CEO of Man Group, in a statement accompanying the update. "However, as we have said many times before, and will probably say again, the institutional nature of our business means that flows are likely to be uneven on a quarter-to-quarter basis. We continue to invest in talent, research and technology and remain focused on delivering superior risk-adjusted performance for our clients, thereby creating long-term value for our shareholders."