Broker snap: Steady start to 2012 for Man, says Credit Suisse

1st Mar 2012 10:10

Credit Suisse has reiterated its outperform rating for hedge fund manager Man Group after the firm adjusted its dividend policy and announced a positive start to trading in the current calendar year.The group reported an adjusted pre-tax profit of $262m for the nine months ending December 31st, slightly ahead of previous guidance. While the broker notes that the results were as expected, it highlights the revised dividend policy which will include 100% payout of adjusted management fee earnings and additional dividends/share buy-backs based on performance fee earnings and surplus capital. "We view the revised policy as sensible," Credit Suisse says.Meanwhile, Man said that assets under management (AuM) at the end of February stood at $59.5bn, ahead of the broker's $59bn forecast, attributable to positive investment performance offset by some further de-gearing and net outflows.With Credit Suisse leaving its full-year earnings forecasts virtually unchanged, the 175p price target is left where it is.The stock was trading nearly 8% higher in mid-morning trade.BC