Man Group’s assets under management dropped by 1.9% in the third quarter amid a client redemption the firm had already flagged, but AUM still grew by 8.5% for the year to $174.9 billion.
The firm, which is listed in London and has been on the acquisition trail of late, said in an update that a single client outflow from its systematic long-only strategy amounted to $7 billion. Man Group had said in its half-year update in July that it was expecting a $6.7 billion redemption as the client decided to switch its entire equities allocation to a passively managed, index-based portfolio. The amount grew to $7 billion due to positive investment performance.
The allocation had a net management fee margin of 21 basis points, thereby having “minimal impact on the firm’s profits,” the half-year update said.
While Man Group didn’t identify the client in that update, it said the client first invested with the manager in 2011, and its investment performance through the firm had been an annualized 16%.
“As we have said before, the institutional nature of our business can result in some variability in near-term net flows,” the half-year update said.
Man Group reported $5.5 billion in net outflows for the quarter ended Sept. 30, compared with $2.5 billion in net inflows for the previous quarter and $700 million in net inflows for the quarter ended Sept. 30, 2023.
Investment performance for the third quarter of 2024 added $400 million, compared with $1.3 billion for the previous quarter, and $100 million for the same quarter in 2023.
