Man Group hedge fund inflows better than feared

16th Oct 2014 08:59

Third quarter net inflows at hedge fund manager Man Group were better than expected, with a "significant" new institutional mandate offsetting the impact of a slowdown in sales at GLG.Group assets under management (AuM) increased 25% to $72.3bn thanks to the completed acquisitions of US-based Numeric and Pine Grove, with net inflows of $0.4bn, comprising sales of $4.5bn and redemptions of $4.1bn.Investment performance was a positive $1.3bn with continued good returns from AHL funds so far in the second half, although FX movements cut AUM by $2.9bn due to the strength of the dollar.Net inflows were principally into quant alternatives and long-only strategies, which were partially offset by net outflows from discretionary alternatives, fund of funds alternatives and guaranteed products. Chief executive Manny Roman said flagship AHL had won a "significant new institutional mandate" as its traditional momentum strategies continued their strong run of absolute and relative performance.Looking forward, Roman admitted the outlook for flows was "mixed", although there remained a solid sales pipeline in place and the company was seeing increased appetite in long-only strategies and for managed accounts.Broker Liberum said net inflows were better than feared, with the positive inflow in the period impying $3.4bn in the year to date, compared to its forecast for the full year of $0.7bn.Panmure Gordon analysts were also bullish and said: "We remain positive on the shares in view of the good investment performance from AHL funds and implications for performance fees."