Man Group funds under management fall but FY profits rise

27th Feb 2014 12:02

Hedge fund manager Man Group saw funds under management (FUM) slip last year, but its annual profits rose.Man said FUM fell 5% to $54.1bn against a year ago, which it blamed on net outflows and further de-gearing in guaranteed products linked to the performance of its AHL fund, which was merged with its Man Systematic Strategies fund at the start of 2013.In November last year, it said AHL Diversified lost 6.6% in the third quarter, wiping out modest gains it had made since September 2008.However, Man said FUM excluding guaranteed products rose 1% to $51.8bn against a year ago.Adjusted pre-tax profit lifted 8% to $297m as net outflows dropped 51% to $3.6bn, with fourth quarter net inflows of $700m.The group said it was on track to save a total of $270m by the end of 2015 and proposed a final dividend of 5.3 cents per share, making the total dividend for the year 7.9 cents. It also plans to buy back $115m of shares.Chief Executive Manny Roman (pictured) said: "Investment performance in 2013 was reasonable on a relative basis and flows showed modest recovery towards the end of the year after a weaker first half."However, market conditions remain challenging and we maintain our cautious outlook."Accendo Markets Trader Sunny Dhanjal said Man was facing challenging times, but added: "If market conditions continue to improve investors' confidence may return and you could see Man heading the right way."Shares rose 9.9p or 11.8% to 94p by 12:38 in London.PW