Last checked at 1 May 2012 07:00
1 May 2012
INTERIM MANAGEMENT STATEMENT for the quarter ended 31 March 2012
Key points
·; Funds under Management (FUM) at 31 March 2012 of $59.0 billion(31 December 2011: $58.4 billion)
·; Reduced net outflows in the quarter of $1.0 billion comprising sales of $3.1 billion and redemptions of $4.1 billion
·; Positive investment movement of $2.0 billion in the quarter, with strong performance in a broad range of GLG strategies
- Gains of 5% or more in the European long/short, North American Opportunities, Alpha Select, Global Opportunity, Global Convertibles, Market Neutral, European Distressed, Emerging Markets and Multi-Strategy alternative investment styles, with long only Japan Core Alpha up 21.4% and Global Equities up 13.9%
- Three quarters of performance fee eligible GLG FUM at or within 5% of high water mark at end March
- Man AHL Diversified plc up 0.8% in the year to 26 March; AHL was approximately 14% from peak on a weighted average basis at end March
·; FX and other movements of a negative $0.4 billion in the quarter, driven by guaranteed product degears after negative AHL performance in the rebalancing period: further degears of $0.4 billion on 1 April and $0.6 billion on 1 May
·; Financial position remains strong, with a regulatory capital surplus, after a capital buffer, of approximately $550 million and net cash of approximately $250 million.
Peter Clarke, Chief Executive of Man, said:
"After a strong start to the year, markets came back under pressure in March and drove greater dispersion in investment performance across our industry. GLG negotiated these conditions well and continued to make money for investors, but performance at AHL turned negative as markets reversed.
"Against this backdrop, redemptions reduced but investor sentiment remained fragile and we are yet to see an increase in sales.
"We remain very focussed on the key priorities of delivering performance for our investors, meeting client needs and improving operational efficiency across the business. The benefits of innovation and investment at AHL are starting to show through, and we have seen good interest in new products as well as for a range of our current strategies which are well positioned for these markets. We continue to take action on costs and are on track to deliver the $75 million of savings announced in January."
Conference call
A conference call for investors and analysts will be held at 08:00 UK time this morning.
Audio Details
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Playback Details
UK Playback Number: +44 (0)20 3140 0698
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FIRST QUARTER FUM COMMENTARY
Asset flows
Man saw net outflows of $1.0 billion in the first quarter, reflecting sales of $3.1 billion and reduced redemptions of $4.1 billion. There was a net outflow from alternative funds of $1.4 billion and a net inflow of $0.4 billion into long only styles.
The guaranteed product outflow of $0.4 billion was identical to the previous quarter. The key drivers of the overall reduction in guaranteed product FUM are negative AHL performance and the resulting product degear.
Sales of open-ended alternatives were $1.7 billion and redemptions were $2.6 billion. Within this category, AHL had net outflows of $0.7 billion, driven mainly by continuing redemptions from Nomura Global Trend. GLG Alternatives recorded a small net outflow of $0.2 billion, with strong flows into the European long/short style offset by small outflows across a range of other strategies.
There was a net outflow of $0.1 billion from institutional fund of funds, but FUM in this category increased slightly overall. Sales of $0.5 billion reflect $0.4 billion of funding from previously announced mandates, from which $0.6 billion is still to fund. There is client interest in the managed accounts platform and the GLG Multi-Strategy fund, which was up 5.4% in the quarter.
Long only styles saw a net inflow of $0.4 billion, the majority of which was into Japan Core Alpha.
Investment performance
Man delivered $2.0 billion of positive performance for fund investors in the first quarter.
GLG's range of alternative investment styles made a strong start to the year, with the European long short style up 8.0%, Market Neutral up 10.0%, European Distressed up 10.0% and Global Convertibles up 8.4%. Styles which were negative last year, including Alpha Select, Emerging Markets and North American Opportunities, recovered well in the first quarter. Three quarters of GLG FUM was at or within 5% of high water mark at end March.
AHL Diversified plc was up 0.8% from 26 December 2011 to 26 March 2012, with performance across the leading CTA peer group reflecting tough trading conditions for trend followers. Long stock index futures positions contributed positively, as did trading in energies, credit and currencies. Positions in metals, bonds, interest rates and agriculturals detracted from performance. As at end March, AHL was approximately 14% below peak on a weighted average basis.
Long only styles delivered $1.5 billion of performance for fund investors, with Japan Core Alpha up 21.4% in the quarter.
Other movements
FX generated a positive contribution of $0.3 billion in the first quarter, mainly due to the strengthening of the Euro against the dollar.
The routine rebalancing of investment exposure in guaranteed products drove a negative $0.7 billion of other movements, with AHL 1.6% negative in the rebalancing period. There were further degearsof $0.4 billion on 1 April and $0.6 billion on 1 May.
FUNDS UNDER MANAGEMENT ANALYSIS
3 months to 31 March 2012
Guaranteed | Open ended | Institutional FoF and other | Alternatives total | Long only | Total | ||
$bn | Man $bn | GLG $bn | $bn | $bn | $bn | $bn | |
FUM at 31 December 2011 | 10.0 | 14.5 | 11.0 | 12.2 | 47.7 | 10.7 | 58.4 |
Sales | - | 0.5 | 1.2 | 0.5 | 2.2 | 0.9 | 3.1 |
Redemptions | (0.4) | (1.2) | (1.4) | (0.6) | (3.6) | (0.5) | (4.1) |
Net inflows/(outflows) | (0.4) | (0.7) | (0.2) | (0.1) | (1.4) | 0.4 | (1.0) |
Investment movement | (0.2) | (0.2) | 0.6 | 0.3 | 0.5 | 1.5 | 2.0 |
FX | 0.1 | - | 0.1 | 0.2 | 0.4 | (0.1) | 0.3 |
Other | (0.4) | (0.1) | - | (0.2) | (0.7) | - | (0.7) |
Closing FUM | 9.1 | 13.5 | 11.5 | 12.4 | 46.5 | 12.5 | 59.0 |
FUM by manager
$bn | 31 March 2012 | 31 December 2011 | 30 September 2011 |
AHL | 19.5 | 21.0 | 24.4 |
GLG Alternatives | 16.1 | 15.5 | 16.5 |
- Equity | |||
- Europe | 3.1 | 2.5 | 2.6 |
- North America | 2.2 | 2.3 | 2.1 |
- UK | 1.0 | 0.9 | 1.1 |
- Other equity alternatives | 0.6 | 0.6 | 0.9 |
- Credit and Convertibles | |||
- Convertibles | 2.0 | 1.8 | 1.8 |
- Market Neutral | 0.8 | 0.9 | 1.0 |
- Ore Hill | 0.9 | 0.9 | 0.6 |
- Pemba | 2.6 | 2.5 | 2.8 |
- Emerging markets | 2.1 | 2.3 | 2.8 |
- Macro and special situations | 0.8 | 0.8 | 0.8 |
Long only | 12.5 | 10.7 | 10.9 |
- Japan | 6.8 | 5.6 | 5.8 |
- Other | 5.7 | 5.1 | 5.1 |
Man Multi-Manager | 10.9 | 11.2 | 12.7 |
Total | 59.0 | 58.4 | 64.5 |
Investment performance
Total return | Annualised return | |||
3 months to 31 Mar 2012 | 12 months to 31 Mar 2012 | 3 years to31 Mar 2012 | 5 years to31 Mar 2012 | |
AHL | ||||
Man AHL Diversified plc1 | 0.8% | 0.9% | -0.9% | 8.2% |
AHL Alpha plc2 | 0.7% | 1.4% | 0.9% | 6.8% |
Man AHL Diversity3 | -1.6% | -1.4% | n/a | n/a |
Man AHL Trend4 | -2.2% | -2.7% | n/a | n/a |
GLG ALTERNATIVES | ||||
Equity | ||||
Europe | ||||
GLG European Long Short Fund5 | 8.0% | 11.6% | 11.1% | 5.8% |
GLG European Equity Alternative UCITS Fund6 | 7.8% | n/a | n/a | n/a |
GLG European Alpha Alternative UCITS Fund7 | 0.5% | -1.7% | n/a | n/a |
GLG European Opportunity Fund8 | 0.6% | -16.1% | -1.3% | 3.6% |
MLIS GLG European Opportunity UCITS Fund9 | -0.3% | -14.8% | n/a | n/a |
North America | ||||
GLG North American Opportunity Fund10 | 6.2% | -6.0% | 10.3% | 3.1% |
GLG North American Equity Alternative UCITS fund11 | 5.7% | -6.9% | n/a | n/a |
UK | ||||
GLG Alpha Select Fund12 | 5.0% | -7.1% | 6.0% | 8.2% |
GLG Alpha Select UCITS Fund13 | 4.9% | -7.7% | n/a | n/a |
Other equity alternatives | ||||
GLG Global Opportunity Fund14 | 5.3% | -6.8% | 6.0% | 0.9% |
Credit and convertibles | ||||
Convertibles | ||||
GLG Global Convertible Fund15 | 8.4% | -2.8% | 13.3% | 2.4% |
GLG Global Convertible UCITS Fund16 | 10.2% | -1.9% | 14.2% | 1.8% |
Market Neutral | ||||
GLG Market Neutral Fund17 | 10.0% | 2.6% | 38.9% | 6.1% |
GLG European Distressed Fund18 | 10.0% | -1.1% | n/a | n/a |
Ore Hill | ||||
GLG Ore Hill Fund19 | 3.6% | -2.4% | 23.0% | 0.4% |
Emerging markets | ||||
GLG Emerging Markets Fund20 | 6.4% | -13.3% | 9.9% | 3.9% |
GLG Emerging Markets UCITS Fund21 | 5.6% | -11.3% | n/a | n/a |
Macro and special situations | ||||
GLG Atlas Macro Fund22 | 0.3% | 5.2% | 10.0% | n/a |
GLG Atlas Macro Alternative UCITS Fund23 | 1.2% | 4.1% | n/a | n/a |
GLG LONG ONLY | ||||
GLG Japan Core Alpha Equity Fund24 | 21.4% | -0.7% | 7.6% | -7.2% |
GLG Global Equity Fund25 | 13.9% | -3.3% | 16.4% | -2.9% |
Investment performance continued
Total return | Annualised return | |||
3 months to 31 Mar 2012 | 12 months to 31 Mar 2012 | 3 years to31 Mar 2012 | 5 years to31 Mar 2012 | |
MAN MULTI-MANAGER | ||||
Man-IP 22026 | -3.0% | -3.3% | -0.1% | 4.2% |
Man Absolute Return Strategies27 | 1.2% | -5.2% | 3.5% | 0.6% |
Man Dynamic Selection28 | 2.3% | -4.4% | 2.4% | 2.5% |
GLG Multi-Strategy Fund29 | 5.3% | -1.7% | 10.0% | -0.5% |
MAN SYSTEMATIC STRATEGIES | ||||
TailProtect Limited Class B | -5.6% | 20.9% | n/a | n/a |
Indices | ||||
World stocks30 | 11.2% | 1.5% | 17.6% | -1.4% |
World bonds31 | 0.6% | 6.9% | 3.6% | 4.8% |
Corporate bonds32 | -0.6% | 18.6% | 15.8% | 8.7% |
Hedge fund indices | ||||
HFRI Fund Weighted Composite Index33 | 4.9% | -2.3% | 9.4% | 2.6% |
HFRI Fund of Funds Composite Index33 | 3.4% | -3.4% | 4.6% | -0.7% |
HFRX Global Hedge Fund Index | 3.1% | -6.4% | 3.7% | -2.5% |
Style indices | ||||
Barclay BTOP 50 Index | -0.6% | -2.8% | -0.6% | 3.7% |
HFRI Equity Hedge (Total) Index33 | 7.2% | -3.9% | 10.7% | 1.3% |
HFRX Equity Hedge Index | 3.9% | -13.2% | 0.9% | -4.7% |
HFRI Event-Driven (Total) Index33 | 4.8% | -2.2% | 12.2% | 2.5% |
HFRX Event Driven Index | 5.8% | -1.7% | 5.4% | -1.2% |
HFRI Macro (Total) Index33 | 0.9% | -2.7% | 3.2% | 4.8% |
HFRX Macro Index | -1.3% | -7.5% | -5.4% | -0.8% |
HFRI Relative Value (Total) Index33 | 4.3% | 2.1% | 12.2% | 4.9% |
HFRX Relative Value Arbitrage Index | 3.6% | -1.9% | 13.5% | -0.9% |
Source: Man database, Bloomberg and MSCI. There is no guarantee of trading performance and past or projected performance is not a reliable indicator of future performance. Returns may increase or decrease as a result of currency fluctuations.
1) Man AHL Diversified plc is valued weekly, but for comparative purposes the last weekly valuation of the month has been used.
2) AHL Alpha plc is valued weekly, but for comparative purposes the last weekly valuation of the month has been used.
3) Represented by Man AHL Diversity GBP DB. Please note that Man AHL Diversity GBP DB was valued weekly until 2 May 2011. Prior to this date, the last weekly valuation of the month has been used.
4) Represented by Man AHL Trend EUR I. Please note that Man AHL Trend EUR I was valued weekly until 2 May 2011. Prior to this date, the last weekly valuation of the month has been used.
5) Represented by GLG European Long Short Fund - Class D Restricted to Unrestricted (29/06/2007) - EUR.
6) Represented by GLG European Equity Alternative IN EUR. Please note that the inception date of GLG European Equity Alternative IN EUR is 26 July 2011.
7) Represented by GLG European Alpha Alternative IN EUR.
8) Represented by GLG European Opportunity Fund - Class D Restricted to Unrestricted (31/08/2007) - EUR.
9) Represented by MLIS European Opportunity Class B EUR ACC.
10) Represented by GLG North American Opportunity Fund - Class A Restricted to Unrestricted (29/06/2007) - USD.
11) Represented by GLG North American Equity Alternative IN USD. Please note that the inception date of GLG North American Equity Alternative IN USD is 24 January 2011.
12) Represented by GLG Alpha Select Fund - Class C - EUR.
13) Represented by GLG Alpha Select Alternative IN H EUR.
14) Represented by GLG Global Opportunity Fund - Class Z - USD.
15) Represented by GLG Global Convertible Fund - Class A - USD.
16) Represented by GLG Global Convertible UCITS Funds Class IL T USD.
17) Represented by GLG Market Neutral Fund - Class Z Restricted to Unrestricted (31/08/2007) - USD.
18) Represented by GLG European Distressed Fund - Class A - USD.
19) Represented by Ore Hill International Fund II Ltd.
20) Represented by GLG Emerging Markets Fund - Class A Restricted to Unrestricted (31/08/2007) - USD.
21) Represented by GLG EM Diversified Alternative IN EUR.
22) Represented by GLG Atlas Macro Fund - Class A - USD.
23) Represented by GLG Atlas Macro Alternative IN H GBP.
24) Represented by GLG Japan CoreAlpha Equity Fund - Class C to Class I JPY (28/01/2010).
25) Represented by GLG Global Equity Fund Class I T USD.
26) Represented by Man-IP 220 Ltd from 18 December 1996 to 31 December 2005 and Man-IP 220 Ltd - USD class bonds from 1 January 2006.
27) Represented by Man Absolute Return Strategies USD I.
28) Represented by Man Dynamic Selection USD I.
29) Represented by GLG Multi-Strategy Fund - Class A - USD Shares.
30) Represented by MSCI World Net Total Return Index hedged to USD.
31) Represented by Citigroup World Government Bond Index hedged to USD (total return).
32) Represented by Citigroup High Grade Corp Bond TR.
33) HFRI index performance over the past 4 months is subject to change.
Enquiries
Miriam McKay
Head of Investor Relations and Financial Communications
+44 20 7144 3809
miriam.mckay@man.com
David Waller
Head of Media Relations
+44 20 7144 2121
david.waller@man.com
Maitland PR
George Trefgarne
+44 20 7379 5151
About Man
Man is a world-leading alternative investment management business. It has expertise in a wide range of liquid investment styles including managed futures, equity, credit and convertibles, emerging markets, global macro and multi-manager, combined with powerful product structuring, distribution and client service capabilities. As at 31 March 2012, Man managed $59.0 billion.
The original business was founded in 1783. Today, Man is listed on the London Stock Exchange and is a member of the FTSE 100 Index with a market capitalisation of around £1.8 billion.
Man is a signatory to the United Nations Principles for Responsible Investment (PRI) and a member of the Dow Jones Sustainability World Index and the FTSE4Good Index. Man also supports many awards, charities and initiatives around the world, including sponsoring the Man Booker literary prizes and the Man Asian Literary Prize. Further information can be found at www.man.com.
Forward looking statements and other important information
This document contains forward-looking statements with respect to the financial condition, results and business of Man Group plc. By their nature, forward looking statements involve risk and uncertainty and there may be subsequent variations to estimates. Man Group plc's actual future results may differ materially from the results expressed or implied in these forward-looking statements.
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