25th feb: Hedge fund giant Man Group impressed with full year results driven by acquisitions, with surging sales and performance fees from its AHL quant funds. Assets rose 35% to $72.9bn (£47bn) in 2014, with redemptions from group funds declining 6%. Adjusted profit before tax was up 62% at $481m and adjusted eps up 73% at 24.4 cents.
Gross sales rose 36% to $21.9bn as the AHL Diversified trend-following fund returned 32%, making it one of the best-performing hedge funds in the world over the last 12 months.
AHL Evolution and AHL Currency Fund, both smaller than AHL Diversified, rose 20% and 59% respectively, in what broker Shore Capital described as "a stellar year" for the family of algorithm-driven funds.
MAN GROUP, the world’s largest listed hedge fund, recorded a 62 per cent surge in adjusted profits before tax to $481m (£310m) for the financial year ended 31 December, on the back of higher performance fees and cost savings.
The British fund manager also saw funds under management rocket 35 per cent to $72.9bn over the period, boosted by the $16.2bn brought on board through the year’s acquisition of US firms Numeric and Pine Grove.
The firm received net inflows of $3.3bn after net outflows of $3.6bn in 2013.
Chief executive Manny Roman said: “2014 marked a year of progress for the group with strong performance at [computer-driven] AHL funds, a full year of net inflows, the completion of the restructuring programme ahead of schedule and several key acquisitions and hires that have materially enhanced our investment capabilities and our North American business.”
Roman, however, warned that sluggish short-term demand for the firm’s AHL products, combined with a slowdown in sales across its discretionary strategies and ongoing market volatility meant “we remain cautious in our near-term outlook”.
Man Group plc (the "Company") announces that it has entered into an irrevocable, non-discretionary arrangement with Credit Suisse Securities (Europe) Limited to repurchase on its behalf ordinary shares in the Company, up to a maximum consideration of US$175 million and subject to certain pre-set parameters, during the period from 27 February 2015 up to and including 31 December 2015 (the "Execution Period"), including during any "close period" or "prohibited period" of the Company (as such terms are defined in the UKLA Listing Rules) which may fall during the Execution Period. All shares repurchased will be cancelled.
As previously announced on 25 February 2015, the purpose of the share repurchase programme is to return surplus capital to the shareholders.
The arrangement is in accordance with the UKLA Listing Rules and the Company's general authority to repurchase shares and will be discontinued in the event the Company ceases to have the necessary general authority to repurchase ordinary shares.
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