(Updated with correction)
Man Group estimated that assets under management for the year ending March 31 will be down 36% to $47.7 billion from March 31, 2008.
About 40% of assets were from institutional investors. New inflows from institutional investors for the year totaled $3.7 billion, while redemptions were $7.9 billion for a net outflow of $4.2 billion. Private investors brought new inflows of $11.1 billion to the firm and redeemed $9.1 billion, for net inflows of $2 billion. Man Group will announce year-end earnings on May 28, according to its website.
Man Group also announced today further consolidation of its alternative investment units through the integration of RMF, a hedge funds-of-funds manager, with Man Glenwood. Man Glenwood was formed in December when hedge funds-of-funds manager Glenwood Capital Investments was combined into a single unit with separate account specialist Man Global Strategies. RMFs integration will be completed in May.
The new business will operate under the Man brand and will manage $28 billion after RMFs integration, said spokesman Armel Leslie. John Rowsell, CIO of Man Glenwood, is managing director of the combined unit; Herbert Item, RMFs CIO, will assume the same role in the new unit. Both will report to Peter Clarke, Man Group CEO.
In addition, Man Group today said it will cut about 15% of its work force beginning in April.
The layoffs will contribute to savings of $60 million across the U.K.-listed company, the company said in its earnings guidance report for the fiscal year ending March 31.