Man Group is still struggling as its clients take out billions more cash
Friday 03 May 2013
Man Group boss Manny Roman today warned that a recovery in the fortunes of his troubled hedge fund was still some way off as clients pulled out billions more of cash.
The company saw its assets under management tumble to $54.8 billion (£35.2 billion) from $57 billion at the start of the year despite an improved performance from its flagship computer-driven AHL fund.
Overall net outflows were $3.7 billion during the first quarter, highlighting the task Roman, pictured, and his management team face in saving the former stock-market darling from a terminal decline, having taken over from Peter Clarke earlier this year. “This was a disappointing quarter from a flows perspective with sales at a similar level to the previous quarter and increased redemptions, chiefly due to the loss of three sizeable low-margin mandates,” he said.
“Investment performance is the lifeblood of our business and in time we expect good performance to translate into flows. However, we remain cautious in our outlook as we will need a more sustained period of performance, particularly from AHL, before we see an improvement in net flows.”
Man Group said AHL’s open-ended funds are around 4.5 per cent away from the high-water mark above which the firm can earn lucrative performance fees.
The group is set to face investors at its annual meeting today but is unlikely to face an investor revolt over pay, having scrapped bonuses for senior executives.
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