Man Group has posted a difficult set of quarterly numbers as the loss of a $1 billion mandate hit assets.
The world’s largest listed hedge fund has now reported nine quarters of client outflows despite the firm’s improving performance numbers.
In its Q4 2010 results it reported overall asset growth to $68.6 billion, due to positive investment performance. This includes the $25.4 billion in assets it took on following its acquisition of GLG last year. It had been hoped that the firm would be back to new inflows with these numbers with analysts anticipating growth in the region of $550 million to $900 million.
The firm will take solace that its flagship computer-driven AHL strategy, which returned some 14.8% in 2010, is now tantalising close to its high water mark – above which it can once again start earning performance fees. It is some 3.7% off this level on average for clients. Both AHL and GLG’s long-only funds have attracted new business over recent months as the firm has made increasing forays into the wholesale market with Ucits products.
Reporting the numbers the firm sought to place the emphasis on GLG and its own fledgling wholesale business as a way of winning new clients. The group has been turning to a wider client-base since the asset falls it saw in the credit crunch.
Man Group chief executive Peter Clarke (pictured) said: ‘Performance is driving investor demand first in open-ended funds, with our integrated marketing campaigns focusing on emerging markets, global macro and equity long/short funds, as well as managed futures.
‘GLG UK Alpha Select UCITS was re-opened briefly to new investors and raised an additional $240 million. 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.’
Man Group opened trading down some 0.5% at 299.6p.