<!-- Swiftype Variables -->

Money Management

Man Group’s assets relatively flat in quarter; net inflows total $400 million

Man Group PLC CEO Luke Ellis

Man Group's assets under management grew 0.4% for the quarter and 10.2% for the year ended Sept. 30 to $114.1 billion.

The firm also announced in a trading update Friday that it is proposing an enhanced international governance structure, following its growth in the U.S. market.

Net inflows for the three months ended Sept. 30 totaled $400 million, notwithstanding a previously announced infrastructure allocation redemption of $2.2 billion. That compared with $3.5 billion in net inflows for the previous quarter and $2.8 billion in net inflows for the quarter ended Sept. 30, 2017.

Overall investment movements added $900 million in the quarter, but negative foreign exchange and other impacts also detracted $900 million.

Revenue and profit figures are only published in interim and preliminary reports, in the second and fourth quarters.

For the latest quarter, alternative strategies assets under management fell 1.7%, but grew 13.9% for the year to $64.6 billion. The unit recorded $400 million in net outflows and a $700 million loss in foreign exchange and other impacts for the quarter.

Long-only strategies saw a 3.1% increase in assets under management to $49.4 billion for the quarter, with $800 million in net inflows. Investment effects added a further $900 million for the quarter, and FX and other impacts detracted $200 million. For the year long-only assets under management grew 6%.

The firm's guaranteed strategies assets under management were steady at $100 million for the quarter, but fell 50% for the year.

Man Group said in its update that it has seen significant growth in U.S. business over the past five years, as well as growth internationally and in the U.K.

As a result, the firm wants to adjust its international governance and corporate structure to provide "greater flexibility for the group going forward," and to support the effective and efficient governance of the business, said the update.

The proposal would see Man Group incorporate a new group holding company in Jersey. The firm's shares would remain U.K.-listed and no changes are expected to inclusion in indexes. It would remain a U.K. tax resident, and there would be no impact on its presence or business operations in London.

The only employee impact would be the relocation of Robyn Grew, the group's chief administration officer, to the U.S. as part of the proposals to enhance the existing management structure in Man Group's international operations. A spokeswoman said the relocation date is yet to be confirmed.

The proposed holding company structure is subject to shareholder approvals and would be implemented via a court-approved scheme of arrangement. Shareholders would exchange existing ordinary shares in Man Group PLC for those of the new holding company. Man Group subsidiaries that operate in the U.S. and Asia would be reorganized under the new holding company and will continue to be regulated by their local regulators. The update said further details will be provided in due course.