Man Group’s funds under management climbed to
$57.7 billion during the first half of 2014, a 7% rise from the
$54.1 billion recorded at the end of 2013.
But the positive momentum for the London-based
group’s growing volume of assets under management
was coupled with somewhat mixed performances across its managed
futures, traditional hedge fund and multi-manager
In the six months to 30 June, adjusted profits before tax
rose 10% to $148 million, compared to the $134 million for the
same period in 2013. Net inflows to Man Group stood at $2.8
billion, an impressive turnaround from the $5.0 billion of
outflows seen in the first half of last year.
Redemptions, meanwhile, were down by 17% to $9.6 billion,
compared to $11.5 billion in the first half of last year
– and gross sales shot up 91% to $12.4 billion, which
marked a sharp hike from the $6.5 billion seen in H1 2013.
On the flipside, the absolute performance of the strategies
run by Man’s three investment management units
– AHL, FRM and GLG – was somewhat mixed.
Manny Roman, chief executive officer of Man, said in a
statement that AHL’s momentum-based strategies
benefitted from fixed income market trends, delivering strong
returns, but that GLG’s equity long/short
strategies suffered from a strong sector and factor rotation,
rounding out the six-month period with some negative
"Whilst it has been a positive first half for the firm and
we recorded another quarter of net inflows in Q2, we remain
cautious as we look to the second half of the year," Roman
"Investment performance in H1 was mixed amid a continued
volatile market environment. AHL performed strongly on an
absolute and relative basis across all its alternative
strategies. Performance elsewhere was good in credit and
discretionary long-only, but below expectations in equities and
AHL’s strong performance was reflected in its
$70 million of performance fees in the first half, 87% of which
were from the AHL Evolution fund. The Evolution strategy, which
trades a range of non-traditional markets not typically traded
by CTA managers, continued its strong run and was up 13.3% for
the first six months of the year.
The AHL Diversified Programme posted a solid 8.7% gain to
the end of June at a time of reviving fortunes in the embattled
CTA space, while the AHL Alpha strategy, which runs at lower
volatility, was up 6.0%.
MSS’s Europe Plus strategy was up 3.5%,
underperforming its benchmark by 2.7%, whilst the Man
systematic strategies group’s TailProtect product
was down by 6.8% but outperformed its benchmark by 12.6%.
The discretionary strategies in the GLG group saw mixed
results: credit strategies were broadly up, while the equity
long/short strategies suffered. Among the gainers were
GLG’s European Distressed (up 5.9%), GLG Market
Neutral (up 4%) and GLG Cross Asset Value (CRAVE) (up 6.8%),
though the GLG Multi-Strategy and the Japan CoreAlpha funds
both saw negative returns at -1.9% and -1.4%, respectively.
Meanwhile, the FRM business saw muted performance across its
multi-manager fund range in H1. The FRM Diversified II fund, an
actively-managed diversified strategy, was up slightly at
+1.4%. FRM Equity Alpha, a statistical arbitrage fund, was up
1.6%. Managed futures performance was flat however, with FRM
Sigma returning +0.2%.
In its interim results statement, Man pointed to the
strengthening of its US presence with the recently-announced
acquisitions of Numeric and Pine Grove as a key strategic boost
to its wider objectives of North American growth and building a
quantitative fund management unit.
US-based quant manager Numeric has $14.7 billion of funds
under management, and is set to become part of the Man Group in
Q3 or Q4. The takeover of Pine Grove – a US credit
fund of hedge fund manager with $1 billion of funds under
management – has been completed this month.
"In the first half of 2014, we made progress towards our
strategic objectives taking significant steps to position the
firm for future growth and largely completing our restructuring
process," Roman said, noting that the acquisitions of two
"highly complementary" US businesses would enhance its offering
He added: "We remain committed to investing in talent,
research and technology and building the optimal environment to
deliver superior risk adjusted performance for our clients
which will ultimately translate into the delivery of value for