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Money Management

Man Group assets rise 3.5% in quarter despite outflows

The headquarters of Man Group Plc, right, are seen on the bank of the River Thames in London, U.K.

Man Group's assets under management increased 3.5% for the quarter and 0.35% for the 12 months ended March 31 to $112.3 billion, driven by positive market movements and strong investment performance of quantitative alternative strategies.

A financial update Thursday said net outflows for the quarter were $700 million, compared with inflows of $2.1 billion in the prior quarter.

Investment movements added $4.5 billion to assets under management in the quarter, while foreign exchange and other effects were flat in the quarter.

The firm's alternatives strategies AUM grew 3.4% for the quarter and 4.7% for the year ended March 31 to $67.1 billion. Net inflows into these strategies in the quarter were $1.4 billion.

Long-only strategies recorded a 3.7% increase during the quarter to $45.1 billion, with net outflows of $2.1 billion for the period, but fell 7% for the year ended March 31. Foreign exchange detracted $100 million from long-only assets for the quarter.

Assets in guaranteed strategies were flat for the quarter at $100 million.

"We are pleased to report a $3.8 billion increase in our funds under management in the first quarter to $112.3 billion, driven by strong investment performance from our quant alternative strategies and positive market movements," CEO Luke Ellis said in the release accompanying the update. "The investment performance more than offset the previously indicated outflows in the quarter, which were concentrated in discretionary long-only, including European retail investors reducing exposure to Japan and institutional clients reducing exposure to global equities. While we expect clients to continue adjusting their portfolio allocations during the second quarter, we see ongoing engagement with clients on new mandates and, in particular, continuing strong demand for our total return strategies."