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Money Management

Man Group AUM slips 4.9% in quarter, 0.5% for year

Man Group CEO Luke Ellis

Man Group's assets under management fell 4.9% for the quarter and 0.5% for 12 months ended Dec. 31 to $108.5 billion, driven lower by high market volatility.

A financial update Friday said net inflows for the year were $10.8 billion, compared with $12.8 billion for the year ended Dec. 31, 2017. Net inflows in the fourth quarter of 2018 amounted to $2.1 billion, driven by alternative strategies and long-only strategies sales.

Net revenue totaled $913 million in 2018, down 14.6% compared to 12 months ended Dec. 31, 2017.

Investment movements took $7.7 billion from assets under management in 2018 vs. a positive impact of $10.7 billion for the same period in 2017. Foreign exchange and other effects also lost the firm $3.7 billion, compared with adding $4.7 billion for 12 months ended Dec. 31, 2017.

For 12 months ended Dec. 31, the firm's alternatives strategies assets under management grew 4.9%, and 0.5% for the quarter to $64.9 billion. Net inflows into these strategies for 2018 were $7.7 billion and for the quarter were $1.8 billion.

Long-only strategies recorded a 7.8% drop for 12 months to $43.5 billion, with net inflows of $3.1 billion for the period. For the quarter ended Dec. 31, long-only assets under management fell 11.9%, with net inflows of $300 million. Foreign exchange took $900 million from long-only assets for the year and $200 million for the quarter.

Assets in guaranteed strategies fell 50% for 12 months but were flat for the quarter at $100 million.

"2018 was a more difficult year for the asset management industry, characterized by periods of higher volatility which impacted performance across asset classes and investment styles," Man Group CEO Luke Ellis said in a news release accompanying the update.

Man Group reported a decrease in performance fee profits but outperformed peers, he said.

"We have managed costs while investing for growth, further diversified to capture new opportunities and strengthened client relationships, helping us to achieve broad based net inflows of $10.8 billion," Mr. Ellis said.