CORRECT: Man Group Eyes Mainland China For Future Hedge Fund Sales

8th Jul 2010 15:10

("Man Group Eyes Mainland China For Future Hedge Fund Sales," published at 1320 GMT, misstated Man's current assets.) By Margot Patrick Of DOW JONES NEWSWIRES LONDON (Dow Jones)--Man Group PLC (EMG.LN) Chief Executive Officer Peter Clarke Thursday said the hedge-fund giant could be selling products to mainland China investors within a few years if lobbying efforts with authorities pay off. Speaking at the company's annual general meeting, Clarke said Man Group is currently looking to sign on state-run institutions as clients--a process he is directly involved in--but hopes to eventually get authorization to sell hedge-fund products to private investors, building on its success in other parts of Asia such as Japan, South Korea and Taiwan. The firm already has a thriving business in Hong Kong, mainly in onshore hedge funds sold to well-off individuals. Clarke said he anticipates Man Group would be regulated by China's central bank if it were to receive authorization, something he said he considers possible in as few as three years. Earlier Thursday, Man Group said its assets shrank 2% in the three months to June 30, to $38.5 billion, as institutions continued to pull money from funds, albeit at a lower level than in previous quarters. The company is in the midst of a planned $1.6 billion cash-and-shares takeover of GLG Partners Inc. (GLG), as part of Man Group's strategy to diversify its revenue from its $21.2 billion AHL trading program and to have more products to push through its extensive distribution network. Chairman Jon Aisbitt told shareholders at the AGM that, as previously stated, the transaction could be done without raising new capital and that there are no plans for a rights issue. Shareholders will vote on the deal in mid- to late-August and completion is expected before the end of September. In an apparent reference to the three GLG principals who are set to join Man Group in as-yet unspecified positions as part of the takeover, Aisbitt said the company is working to "broaden and deepen our senior management team" and should be able to show tangible results of that process within a year's time. -By Margot Patrick, Dow Jones Newswires; +44 (0)20 7842 9451; [email protected] (END) Dow Jones Newswires July 08, 2010 10:10 ET (14:10 GMT)