Man Group surprises itself

5th Nov 2009 07:27

Hedge fund manager Man Group has reported an interim profit of $302m, just half what it made a year earlier, but 8% better than the number it predicted little more than a month ago.In September's update, the company thought pre-tax profit would drop to $280m from $622m the year before. Net management fee income fell 57% to $245m, reflecting lower average funds under management, while net performance fee income slumped 71% to $47m.Funds under management edged up to $44bn at 30 September from $43.3bn at the end of June thanks to private investor sales and a "considerable" improvement in private and institutional investor redemption rates between the first and second quarters. "Recent product initiatives have demonstrated significant momentum in the business and underline the benefits of our broad investment management franchise, wide investor base and strong competitive position," said chief executive Peter Clarke."Our financial strength provides the basis for continued investment to capitalise on these strengths. The momentum in the business means that we are well positioned to grow assets."The interim dividend stays at 19.2 cents per share.