Man Group Profits Rise 60%

by Phillip Morton, Investors Offshore.com

02 June 2008

Man Group plc, one of the world's largest alternative investment companies, has announced a 60% rise in its pre-tax profits, driven by a surge in performance fee and management fee income.

The company announced in its annual results for the year ended 31st March, 2008, that pre-tax profits from continuing operations were USD2.079bn. Net performance fee income rose by 161% to USD936mn, while net management fee income increased by 21% to USD1.143bn.

By the end of March 2008, funds under management had reached USD74.6bn, an increase of 21% over the previous year.

Of this total, private investors accounted for 58% and institutional investors for the remainder. Since year end, funds under management have risen further, to around USD78.5bn, driven by positive investment performance, the recently launched USD1bn Asian fund, and institutional business won in the US, the company stated.

Sales in the year to the end of March 2008 hit USD15.9bn, which equalled the previous year's record. 51% of sales were to institutional investors and 49% to private investors.

While Man Group recorded redemptions of USD10.8bn in the year, it noted that this level was "significantly lower" than the industry average. The company pointed out that meanwhile, USD5.8bn had been created for investors from performance, mainly from Man's flagship AHL fund.

Commenting on the results, Peter Clarke, CEO of Man Group stated that:

“These results are a strong testament to the strength and resilience of Man’s business model in our 225th anniversary year. We have generated positive returns for our investors, recorded pre-tax profits of over USD2bn for our shareholders, and invested in the business."

He continued: “Our strength is in our wide range of investment management capabilities combined with conservative product structures, both of which have allowed us to perform for our investors through some of the most turbulent markets in recent memory."

"With our product breadth and wide geographical presence, we are able to access the changing patterns of global wealth accumulation and continue to grow our business."

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