Man Group defies expectations with first net inflow in two years

17th Oct 2013 13:28

- 0.7bn dollars of net inflows - Funds under management rise to 52.5bn dollars - Flagship fund AHL Diversified down 6.6 per cent in quarterMan Group surprised analysts with its first quarterly net inflow in two years, but expressed caution on the outlook for its asset flows.The hedge fund manager reported clients had placed a net $0.7bn of new money into its funds in the three months to the end of September after sales of $4.1bn exceeded redemptions of $3.4bn.The inflows helped drive up assets under management to $52.5bn at the end of September. Institutional investors poured money into its GLG alternative and long only funds after a stronger first half performance. But its AHL and FRM funds suffered net outflows after a negative quarterly performance from the majority of these strategies. Its flagship AHL Diversified fund suffered a 6.6% fall in the three months to the end of September.Chief Executive Manny Roman said: "Despite better flows in the third quarter we remain cautious in our outlook for asset flows going forward in the light of continued uncertainty in the macro-economic environment."Man said its cost-saving programme was on track. Last month the company signed a contract to sub-let some of its office space at its main London office. This will result in a restructuring charge of $60m and there will be a further redundancy-related charge of $30m in the second half. Analysts Gurjit Kambo at Credit Suisse, who had been expecting $1.1bn of net outflows, said: "While flows have turned positive, we note the cautious outlook, and the inflows into lower margin products could put pressure on revenues."Shares in Man Group were up 3.4% at 85.75p at 14:10 on Thursday.TB