Man Group Announces Record Sales

by Phillip Morton, Investors Offshore.com

10 November 2006

The London-based hedge fund firm Man Group enjoyed record sales of US$10.6 billion in the first half on the back of strong and widely spread demand from both private investors and institutions, Chief Executive Stanley Fink announced yesterday.

In the six months to September 30, 2006, group profit before tax and exceptionals grew by 38% to US$797 million reflecting a 38% increase in net management fee income and a 49% increase in brokerage net income.

There was a 33% increase in Man's net performance fee income, reflecting strong performance across all its managers, but particularly its flagship AHL Fund, the company said.

Funds under management grew US$6.9 billion in the six months to the end of September to $56.8 billion. Overall private and institutional investor funds grew by US$4.2 billion and US$2.7 billion respectively.

At $5.6 billion, Man reported record private investor sales in this period. These sales were generated from across the globe, but particularly from the Asia Pacific region, which contributed US$2.5 billion.

"The Man Group has had an outstanding first half," said Fink.

"Our brokerage business has benefited from the successful integration of the Refco activities acquired a year ago, alongside organic growth from active markets, together producing very strong growth of 49% over the prior period," he observed.

Fink also painted an optimistic picture of the group's future prospects.

"With a good pipeline of products scheduled for the second half, and the brokerage business positioned to benefit further from strong demand for derivative products, the Board is very confident of the group's prospects for the year," he concluded.

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