New York (HedgeCo.net) – Hedge fund giant Man Group PLC., reported a strong financial position, with a regulatory capital surplus of around $300 million and over $1.8 billion in cash on 31 December 2010.
“Investment performance has been the principal driver of asset growth in the final quarter of the calendar year, delivering impressive returns for 2010 as a whole and a solid backdrop for 2011.” Peter Clarke, Chief Executive, said, “The quarter saw positive flows into alternative styles, but a single large redemption resulted in an outflow from lower margin long-only funds.”
Highlights from the third quarter include:
• Funds under management (FUM) at 31 December 2010 of $68.6 billion (30 September 2010: $40.5 billion with the GLG acquisition adding $25.4 billion)
• Growth in FUM at AHL, GLG and Man Multi-Manager, with positive investment returns generating an additional $2.8 billion for investors
o AHL Diversified plc up 14.8% in 2010
o Man-IP220 up 22.3% in 2010
o Strong performance across the board at GLG, with double digit returns in GLG Atlas Macro, GLG Emerging Markets, GLG European Distressed, GLG Market Neutral, GLG Global Opportunity, GLG North American Opportunity and the long only GLG Performance Fund
• AHL was 3.7% below peak on a weighted average basis on 31 December 2010,
with 75% of FUM at or within 5% of peak
• Positive net flows of $0.1 billion in alternative funds, with demand for GLG and AHL in
open-ended formats
• Net outflow of $1.1 billion in long only funds, reflecting a single redemption of over $1.0 billion from
a low margin mandate, as the investor switched out of European equities. Inflows in the long only
business are at higher margins than outflows.
“Our most recent guaranteed product, Man Synergy, started trading on 1 January 2011 at $350 million, indicating some pick-up in private investor demand for structured product. The new Man IP220 GLG product, which combines AHL managed futures with the multi-strategy GLG Global Opportunities fund, will start marketing at the end of this month. The institutional sales outlook is positive, with a major European managed account mandate for at least $1.5 billion expected to conclude in February for funding over the year.”
“We have also established a new hedge fund venture, Man Systematic Strategies, to develop quantitatively-based investment ideas using the combined expertise of Man and GLG. Two new products will be launched from this initiative very shortly.” Clarke concluded.
Editing by Alex Akesson
For HedgeCo.net
alex@hedgeco.net
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