Man Group profits slump

28th May 2009 07:05

Hedge fund manager Man Group saw profits slide for the year as troubles in the global financial markets hit revenues. "The past financial year saw extraordinary turmoil in financial markets globally which put extreme stress on business models across the financial services industry. Man has not been immune," said chief executive Peter Clarke.Pre-tax profit slumped to $743m from $2,079m last year on revenue that slid to $2,433m from $3,222m before. Funds under management at 31 March came in at $46.8bn against $74.6bn last year. "With overall industry performance in positive territory for the year to date and outflows slowing, there are some signs in support of this view," said the group."However, it is clear that a major industry shake-out is underway, precipitating a sharp fall in the number of managers, led more by attrition than consolidation, as many mangers have not been able to survive the decline in assets. The factors underpinning these trends play to the strengths of Man's business model," it added.The group said despite difficult markets it saw a record level of private investor sales in the year. It has taken action to reduce its cost base and adapted its business model and product offerings to suit current investor requirements. The board intends to declare unchanged total dividend in dollar terms for the year of 44 cents per share. This dividend will be paid at the rate of 15.47 pence per existing share, an increase of 23% in sterling terms from the prior year's final dividend.