* Reports first-quarter net inflows of $600 mln
* Alternative strategies perform strongly
(Adds analyst, writes through)
April 16 (Reuters) - Man Group expects positive
engagement with clients to attract increased fund investment in
the coming quarters, it said on Friday as it reported net
inflows of $600 million over the past three months.
The UK-listed fund manager's alternative strategies
offering, which aims to provide diversification to conventional
assets, drew in $800 million. However, long-only strategies were
hit by pandemic-led uncertainty, resulting in net outflows of
$200 million.
JP Morgan analysts, who noted that the first-quarter
performance was strong across different strategies, estimated
net inflows over the rest of the year at $3.5 billion, making
for full-year expectations of $4.1 billion.
The company's overall funds under management climbed to $127
billion by the end of March, from $123.6 billion at Dec. 31.
"This reflects both investment gains for our clients and
continuing net inflows and underscores the strength of our
business model," said Chief Executive Luke Ellis.
Man Group last month set a higher dividend for 2020 in light
of a recovery in the second half of the year even as overall
core earnings dropped.
"It has been some time since the company expressed such
confidence and it is a welcome sign," said Panmure analyst Rae
Maile.
"We have long supported the company's efforts to tilt its
exposure to institutional mandates with greater client
longevity, but evidence of success in this strategy with respect
to net flow delivery has been harder won."
(Reporting by Muvija M and Aaron Saldanha in Bengaluru
Editing by Shailesh Kuber and David Goodman)
Man (EMG)