TIDMEMG
RNS Number : 6475K
Man Group plc
12 April 2018
Press Release
12 April 2018
TRADING STATEMENT for the quarter ended 31 March 2018
Key points
-- Funds under management (FUM) of $112.7 billion at 31 March
2018 (31 December 2017: $109.1 billion) with growth across all our
core product categories
o Net inflows in the quarter of $4.8 billion, driven by strong
inflows into alternative risk premia, European long short and
emerging market local currency strategies
o Negative investment movement of $1.8 billion in the
quarter
o Positive FX movement of $1.2 billion in the quarter as the
dollar weakened against Sterling, the Euro and Yen
o Other movements of negative $0.6 billion
-- Completion of the $100 million share repurchase announced in October 2017
-- Intention to repurchase up to a further $100 million of
shares; we continue to review further potential acquisition
opportunities
Luke Ellis, Chief Executive Officer of Man Group, said:
"We are pleased to report an increase in funds under management
in the first quarter to $112.7 billion, driven by net inflows of
$4.8 billion. The ongoing interest in our range of strategies
reflects our innovative offering and the strength of our client
relationships. In particular, we continued to see client demand for
our alternative risk premia strategies and saw flows returning to
our European long short strategy, following a sustained period of
improved performance.
The first quarter of 2018 was a weaker environment for equity
markets and momentum strategies. While this impacted our absolute
performance in some areas, outperformance across our long only and
discretionary alternative strategies demonstrated the resilient and
diversified nature of our business.
Looking forward we see continuing interest from clients,
however, the institutional nature of our business means that flows
are likely to be uneven on a quarter-to-quarter basis."
FIRST QUARTER FUM COMMENTARY
FUM movements by product type
$bn FUM at Sales Redemptions Net inflows/ Investment FX Other FUM at
31 December (outflows) movement 31 March
2017 2018
----------------- ------------- ------ ------------ ------------- ----------- ---- ------ ----------
Alternative 61.7 5.7 (2.3) 3.4 (1.0) 0.4 (0.5) 64.0
----------------- ------------- ------ ------------ ------------- ----------- ---- ------ ----------
Absolute return 29.2 2.8 (1.4) 1.4 (0.9) 0.1 (0.5) 29.3
Total return 16.5 2.8 (0.7) 2.1 (0.1) 0.2 (0.2) 18.5
Multi-manager
solutions 16.0 0.1 (0.2) (0.1) - 0.1 0.2 16.2
----------------- ------------- ------ ------------ ------------- ----------- ---- ------ ----------
Long only 47.2 5.6 (4.2) 1.4 (0.8) 0.8 (0.1) 48.5
----------------- ------------- ------ ------------ ------------- ----------- ---- ------ ----------
Systematic 26.8 1.7 (1.6) 0.1 - 0.1 (0.1) 26.9
Discretionary 20.4 3.9 (2.6) 1.3 (0.8) 0.7 - 21.6
----------------- ------------- ------ ------------ ------------- ----------- ---- ------ ----------
Guaranteed 0.2 - - - - - - 0.2
----------------- ------------- ------ ------------ ------------- ----------- ---- ------ ----------
Total 109.1 11.3 (6.5) 4.8 (1.8) 1.2 (0.6) 112.7
----------------- ------------- ------ ------------ ------------- ----------- ---- ------ ----------
ALTERNATIVE
Absolute return
Absolute return FUM increased by $0.1 billion in the quarter.
Net inflows included $1.0 billion into European equity long short
and $0.3 billion into UK absolute return. Negative investment
movement of $0.9 billion was due to negative performance across Man
AHL's momentum strategies partially offset by positive performance
across Man GLG's alternative strategies. As at 31 March 2018, 22%
of Man AHL performance fee eligible FUM was at high watermark and
19% was within 5% of high watermark. As at 31 March 2018, 60% of
Man GLG performance fee eligible FUM was at high watermark and 29%
was within 5% of high watermark.
Total return
Total return FUM increased by 12% during the quarter. Net
inflows included $1.3 billion into alternative risk premia
strategies and a European CLO launch of $0.4 billion. Performance
during the quarter was mixed with alternative risk premia
strategies up 0.2% and emerging market debt total return strategies
down 1.3% in the period. FX gains of $0.2 billion were due to the
dollar weakening against the Euro and Sterling. Other movements
included loan repayments at GPM and European CLO maturities.
Multi-manager solutions
Multi-manager solutions FUM increased to $16.2 billion during
the quarter driven by leverage changes.
LONG ONLY
Systematic
Systematic long only FUM was slightly up in the quarter to $26.9
billion. The net inflow of $0.1 billion included inflows into
Emerging Markets Core partially offset by outflows from Global
Core. Investment movement was flat during the period with negative
market moves offset by outperformance.
Discretionary
Discretionary long only FUM increased by $1.2 billion in the
period. Net inflows of $1.3 billion included $0.8 billion into
emerging markets local currency, $0.4 billion into UK undervalued
assets, $0.3 billion into continental Europe and $0.2 billion into
Japan CoreAlpha partially offset by outflows from convertibles
strategies. The negative investment movement of $0.8 billion was
driven by negative performance in Japan CoreAlpha as Japanese
equity markets declined. Positive FX movements increased FUM by
$0.7 billion, primarily due to the weakening of the dollar against
the Yen.
GUARANTEED PRODUCTS
Guaranteed product FUM was $0.2 billion at the end of Q1.
FUM by product category
$bn 31-Mar-17 30-Jun-17 30-Sep-17 31-Dec-17 31-Mar-18
-------------------------------- ---------- ---------- ---------- ---------- ----------
Absolute return 26.4 26.6 27.2 29.2 29.3
-------------------------------- ---------- ---------- ---------- ---------- ----------
AHL Dimension 5.2 5.1 5.7 5.9 5.3
AHL Alpha 4.2 4.2 4.0 4.4 4.1
AHL Evolution 3.0 3.3 3.4 3.7 3.4
AHL Diversified 3.0 3.0 2.9 2.9 2.9
AHL Institutional Solutions* 1.2 1.4 2.2 2.6 2.7
AHL other 1.8 2.0 1.8 1.8 1.6
Numeric absolute return 1.9 1.9 1.8 1.9 1.9
GLG Equity absolute
return 3.6 3.6 3.4 3.8 5.5
GLG Credit absolute
return 1.8 1.5 1.4 1.6 1.3
Multi-strategy 0.7 0.6 0.6 0.6 0.6
-------------------------------- ---------- ---------- ---------- ---------- ----------
Total return 9.7 11.3 14.4 16.5 18.5
-------------------------------- ---------- ---------- ---------- ---------- ----------
Diversified risk premia 1.4 1.6 4.1 5.7 7.5
EM total return 2.0 3.4 3.9 4.4 4.5
CLO 4.4 4.3 4.2 4.2 4.4
GPM 1.9 2.0 2.2 2.2 2.1
-------------------------------- ---------- ---------- ---------- ---------- ----------
Multi-manager solutions 13.2 14.9 15.5 16.0 16.2
-------------------------------- ---------- ---------- ---------- ---------- ----------
Infrastructure & Direct
Access 5.5 7.4 7.1 7.7 7.7
Segregated 4.5 4.7 5.8 6.0 6.3
Diversified and thematic
FoHF 3.2 2.8 2.6 2.3 2.2
Systematic long only 22.8 25.1 26.8 26.8 26.9
-------------------------------- ---------- ---------- ---------- ---------- ----------
Global 13.0 14.9 15.9 16.0 15.4
Emerging markets 5.3 5.7 6.5 6.7 7.6
US 4.5 4.5 4.4 4.1 3.9
Discretionary Long
only 16.3 17.8 19.4 20.4 21.6
-------------------------------- ---------- ---------- ---------- ---------- ----------
Japan equity 7.3 7.9 8.5 9.7 9.5
Europe equity 1.0 1.3 1.9 2.0 2.4
US equity 1.3 1.1 1.2 1.2 1.2
Convertibles 2.3 2.5 2.5 2.2 2.0
UK equity 0.8 1.0 1.2 1.5 1.8
Other equity 0.9 1.0 1.0 1.0 1.0
Multi Asset 1.2 1.1 1.1 1.0 1.1
Fixed income 1.5 1.9 2.0 1.8 2.6
-------------------------------- ---------- ---------- ---------- ---------- ----------
Guaranteed 0.3 0.2 0.2 0.2 0.2
-------------------------------- ---------- ---------- ---------- ---------- ----------
Total 88.7 95.9 103.5 109.1 112.7
-------------------------------- ---------- ---------- ---------- ---------- ----------
*AHL Institutional Solutions invests into a range of AHL
strategies including AHL Dimension, AHL Alpha and AHL Evolution
FUM by investment engine
$bn 31-Mar-17 30-Jun-17 30-Sep-17 31-Dec-17 31-Mar-18
-------------------------------- ---------- ---------- ---------- ---------- ----------
AHL 19.4 19.8 22.0 24.0 23.8
-------------------------------- ---------- ---------- ---------- ---------- ----------
AHL Dimension 5.2 5.1 5.7 5.9 5.3
AHL Alpha 4.2 4.2 4.0 4.4 4.1
AHL Evolution 3.0 3.3 3.4 3.7 3.4
AHL Diversified (inc.
Guaranteed) 3.3 3.2 3.1 3.1 3.1
AHL Institutional Solutions* 1.2 1.4 2.2 2.6 2.7
AHL other 1.8 2.0 1.8 1.8 1.6
Diversified risk premia 0.7 0.6 1.8 2.5 3.6
-------------------------------- ---------- ---------- ---------- ---------- ----------
Numeric 25.4 28.0 30.9 31.9 32.7
-------------------------------- ---------- ---------- ---------- ---------- ----------
Global 13.0 14.9 15.9 16.0 15.4
Emerging markets 5.3 5.7 6.5 6.7 7.6
US 4.5 4.5 4.4 4.1 3.9
Numeric absolute return 1.9 1.9 1.8 1.9 1.9
Diversified risk premia 0.7 1.0 2.3 3.2 3.9
-------------------------------- ---------- ---------- ---------- ---------- ----------
GLG 28.8 31.2 32.9 35.0 37.9
-------------------------------- ---------- ---------- ---------- ---------- ----------
Alternatives 12.5 13.4 13.5 14.6 16.3
-------------------------------- ---------- ---------- ---------- ---------- ----------
GLG Equity absolute
return 3.6 3.6 3.4 3.8 5.5
EM total return 2.0 3.4 3.9 4.4 4.5
GLG Credit absolute
return 1.8 1.5 1.4 1.6 1.3
CLO 4.4 4.3 4.2 4.2 4.4
Multi-strategy 0.7 0.6 0.6 0.6 0.6
Long only 16.3 17.8 19.4 20.4 21.6
-------------------------------- ---------- ---------- ---------- ---------- ----------
Japan equity 7.3 7.9 8.5 9.7 9.5
Europe equity 1.0 1.3 1.9 2.0 2.4
US equity 1.3 1.1 1.2 1.2 1.2
Convertibles 2.3 2.5 2.5 2.2 2.0
UK equity 0.8 1.0 1.2 1.5 1.8
Other equity 0.9 1.0 1.0 1.0 1.0
Multi Asset 1.2 1.1 1.1 1.0 1.1
Fixed income 1.5 1.9 2.0 1.8 2.6
-------------------------------- ---------- ---------- ---------- ---------- ----------
FRM 13.2 14.9 15.5 16.0 16.2
-------------------------------- ---------- ---------- ---------- ---------- ----------
Infrastructure & Direct
Access 5.5 7.4 7.1 7.7 7.7
Segregated 4.5 4.7 5.8 6.0 6.3
Diversified and thematic
FoHF 3.2 2.8 2.6 2.3 2.2
-------------------------------- ---------- ---------- ---------- ---------- ----------
GPM 1.9 2.0 2.2 2.2 2.1
-------------------------------- ---------- ---------- ---------- ---------- ----------
Total 88.7 95.9 103.5 109.1 112.7
-------------------------------- ---------- ---------- ---------- ---------- ----------
*AHL Institutional Solutions invests into a range of AHL
strategies including AHL Dimension, AHL Alpha and AHL Evolution
Total Return Annualised Return
------------------------- ------------------------------------
Last 3
Investment Performance months Last 12 months 3 years 5 years Since Inception
-------- --------------- -------- -------- ----------------
Absolute return
AHL Dimension (1) -4.2% -0.3% 0.7% 3.4% 4.9%
AHL Alpha (2) -3.0% 3.0% -1.8% 3.4% 11.1%
AHL Evolution (3) -4.0% 10.1% 4.2% 11.1% 13.6%
AHL Diversified (4) -5.9% 0.6% -6.4% 2.1% 11.3%
Numeric Alternative Market
Neutral (5) -1.0% -3.3% 1.3% 3.5% 3.8%
GLG European Long Short
Fund (6) 3.8%* 10.5%* 3.7%* 3.0%* 7.8%*
Man GLG European Mid-Cap
Equity Alternative (7) 2.9% 7.5% 7.0% n/a 7.0%
Man GLG Global Credit Multi
Strategy (8) 2.5%* 10.2%* 10.1%* 5.5%* 12.8%*
Man Multi-Strategy Fund (9) 1.4%* 9.1%* 4.3%* 3.6%* 4.6%*
Total return
Man Alternative Risk Premia
SP (10) 0.2% 10.7% n/a n/a 7.8%
Man GLG Global EM Debt Total
Return (11) -1.3% -2.0% n/a n/a 3.5%
Multi-manager solutions
FRM Diversified II (12) 0.3%* 3.9%* -0.1%* 1.8%* 4.2%*
Systematic long only
Numeric Global Core -2.0% 15.4% 9.8% 12.9% 12.9%
Relative Return (13) -0.7% 1.8% 1.8% 3.2% 3.2%
Numeric Europe Core (EUR) -2.0% 4.1% 4.3% 11.8% 9.3%
Relative Return (14) 2.3% 4.6% 4.2% 4.5% 3.1%
Numeric Emerging Markets
Core 3.4% 29.6% 14.1% n/a 9.9%
Relative Return (15) 1.9% 4.7% 5.3% n/a 4.3%
Discretionary long only
Man GLG Japan Core Alpha
Equity Fund (16) -6.9% 9.3% 4.9% 13.1% 4.5%
Man GLG Continental European
Growth Fund (17) 1.2% 14.5% 18.1% 18.2% 9.6%
Man GLG Global Convertible (18) 0.6% 3.5% 2.6% 4.0% 5.7%
Man GLG Undervalued Assets
Fund (19) -4.0% 15.4% 10.8% n/a 11.0%
Indices
HFRX Global Hedge Fund Index (20) -1.0% 3.2% 0.5% 1.3%
HFRI Fund of Funds Conservative
Index (20) 0.7% 3.6% 1.7% 3.0%
Barclay BTOP 50 Index (21) -2.6% -1.7% -4.5% 0.3%
HFRI Equity Hedge (Total)
Index (20) 0.7% 9.8% 5.3% 5.7%
HFRX EH: Equity Market Neutral
Index (20) 0.7% 1.0% 0.3% 1.5%
--------------------------------- ----- -------- --------------- -------- -------- ----------------
Investment performance (Cont'd)
1. Represented by AHL Strategies PCC Limited: Class B AHL Dimension USD
Shares from 3 July 2006 to 31 May 2014, and by AHL Dimension (Cayman)
Ltd - F USD Shares Class from 1 June 2014 until 28 February 2015 when
AHL Dimension (Cayman) Ltd - A USD Shares Class is used. Representative
fees of 1.5% Management Fee and 20% Performance Fee have been applied.
2. Represented by AHL Alpha plc from 17 October 1995 to 30 September 2012,
and by AHL Strategies PCC Limited: Class Y AHL Alpha USD Shares from 1
October 2012 to 30 September 2013. The representative product was changed
at the end of September 2012 due to the provisioning of fund liquidation
costs in October 2012 for AHL Alpha plc, which resulted in tracking error
compared with other Alpha Programme funds. Both funds are valued weekly;
however, for comparative purposes, statistics have been calculated using
the best quality price that is available at each calendar month end, using
estimates where a final price is unavailable. Where a price, either estimate
or final is unavailable on a calendar month end, the price on the closest
date prior to the calendar month end has been used. Both of the track
records have been adjusted to reflect the fee structure of AHL Alpha (Cayman)
Limited - USD Shares. From 30 September 2013, the actual performance of
AHL Alpha (Cayman) Limited - USD Shares is displayed.
3. Represented by AHL Evolution Limited adjusted for the fee structure
(2% p.a. management fee and 20% performance fee) from September 2005 to
31 October 2006; and by AHL Strategies PCC: Class G AHL Evolution USD
from 1 November 2006 to 30 November 2011; and by the performance track
record of AHL Investment Strategies SPC: Class E AHL Evolution USD Notes
from 1 December 2011 to 30 November 2012. From 1 December 2012, the track
record of AHL (Cayman) SPC: Class A1 Evolution USD Shares has been shown.
All returns shown are net of fees.
4. Represented by Man AHL Diversified plc from 26 March 1996 to 29 October
2012, and by Man AHL Diversified (Guernsey) USD Shares - Class A from
30 October 2012 to date. The representative product was changed at the
end of October 2012 due to legal and/or regulatory restrictions on Man
AHL Diversified plc preventing the product from accessing the Programme's
revised target allocations. Both funds are valued weekly; however, for
comparative purposes, statistics have been calculated using the best quality
price that is available at each calendar month end, using estimates where
a final price is unavailable. Where a price, either estimate or final
is unavailable on a calendar month end, the price on the closest date
prior to the calendar month end has been used.
5. Numeric market neutral
6. Represented by GLG European Long Short Fund - Class D Restricted -
EUR until 29 June 2007. From 1 July 2007 the performance of GLG European
Long Short Fund - Class D Unrestricted is displayed.
7. Represented by Man GLG European Mid-Cap Equity Alternative IN H USD.
8. The inception date of the fund, Man GLG Global Credit Multi Strategy,
was 16 January 1998. Performance data is shown using Restricted IL XX
USD (previously Z) share class up until inception of Unrestricted IL XX
USD (previously Z) share class on 31 August 2007, from which point performance
is shown using this share class.
9. Represented by the gross return of Man GLG Multi-Strategy Fund - Class
A - USD Shares until 31 December 2012. From 1 January 2013 the performance
of Man Multi-Strategy Fund - Class G - USD Shares is displayed.
10. Represented by Man Alternative Risk Premia Class A USD.
11. Represented by Man GLG Global Emerging Markets Debt Total Return Class
I USD.
12. Represented by FRM Diversified II Fund SPC - Class A USD ('the fund')
but prior to Jan 2004, FRM has created the FRM Diversified II pro forma
using the following methodology: i) for the period Jan 1998 to Dec 2003,
by using the returns of Absolute Alpha Fund PCC Limited - Diversified
Series Share Cell ('AA Diversified - USD') adjusted for fees and/or currency,
where applicable. For the period Jan 2004 to Feb 2004, the returns of
the fund's master portfolio have been used, adjusted for fees and/or currency,
where applicable. Post Feb 2004, the fund's actual performance has been
used, which may differ from the calculated performance of the track record.
There have been occasions where the 12-months' performance to date of
FRM Diversified II has differed materially from that of AA Diversified.
Strategy and holdings data relates to the composition of the master portfolio.
13. Performance relative to the MSCI World. This reference index is intended
to best represent the strategy's universe. Investors may choose to compare
returns for their accounts to different reference indices, resulting in
differences in relative return information. Comparison to an index is
for informational purposes only, as the holdings of an account managed
by Numeric will differ from the securities which comprise the index and
may have greater volatility than the holdings of an index.
14. Performance relative to the MSCI Europe (EUR). This reference index
is intended to best represent the strategy's universe. Investors may choose
to compare returns for their accounts to different reference indices,
resulting in differences in relative return information. Comparison to
an index is for informational purposes only, as the holdings of an account
managed by Numeric will differ from the securities which comprise the
index and may have greater volatility than the holdings of an index.
15. Performance relative to MSCI Emerging Markets. This reference index
is intended to best represent the strategy's universe. Investors may choose
to compare returns for their accounts to different reference indices,
resulting in differences in relative return information. Comparison to
an index is for informational purposes only, as the holdings of an account
managed by Numeric will differ from the securities which comprise the
index and may have greater volatility than the holdings of an index.
16. Represented by Man GLG Japan CoreAlpha Fund - Class C converted to
JPY until 28 January 2010. From 1 February 2010 Man GLG Japan CoreAlpha
Equity Fund - Class I JPY is displayed.
17. Represented by Man GLG Continental European Growth Fund Class C
Accumulation
Shares.
18. Represented by Man GLG Global Convertible - Class IL T USD until 7
June 2009. From 8 June 2009 the performance of Man GLG Global Convertible
- Class IM USD is displayed.
19. Represented by Man GLG Undervalued Assets Fund - C Accumulation Shares.
20. HFRI and HFRX index performance over the past 4 months is subject
to change.
21. The historic Barclay BTOP 50 Index data is subject to change.
Past or projected performance is no indication of future results.
Financial indices are used for illustrative purposes only and are
provided for the purpose of making a comparison to general market
data as a point of reference and should not be construed as a true
comparison to the strategy.
The information herein is being provided solely in connection with
this press release and is not intended to be, nor should it be construed
or used as, investment, tax or legal advice, any recommendation or
opinion regarding the appropriateness or suitability of any investment
or strategy, or an offer to sell, or a solicitation of an offer to
buy, an interest in any security, including an interest in any fund
or pool described herein.
*Estimate
Enquiries
Fiona Smart
Head of Investor Relations
+44 20 7144 2030
fiona.smart@man.com
Rosanna Konarzewski
Global Head of Communications & Marketing
+44 20 7144 1000
media@man.com
Michael Turner
Finsbury
+44 20 7251 3801
mangroupUK@finsbury.com
About Man Group
Man Group is a global active investment management firm, which
runs $112.7 billion* of client capital in liquid and private
markets, managed by investment specialists based around the world.
Headquartered in London, the firm has 15 international offices and
operates across 25 jurisdictions. Our business has five specialist
investment engines, which represent the range of our capabilities:
Man AHL, Man Numeric, Man GLG, Man FRM and Man GPM.
These engines house numerous investment teams, working
collaboratively within the framework of Man Group, with a high
degree of investment autonomy. Each team benefits from the strength
and resources of the firm's single operating platform, enabling
their primary focus to be seeking to generate alpha for clients.
The teams invest across a diverse range of strategies and asset
classes with highly specialised approaches, with long only and
alternative strategies run on a discretionary and quantitative
basis in single and multi-manager formats. Our clients are at the
heart of everything we do and we engage in close dialogue with our
investors as strategic partners, to understand their particular
needs and constraints. Man Group's investment teams are empowered
and supported by our institutional infrastructure and technology,
which aims to facilitate the most efficient exposure to markets and
effective collaboration across the organisation.
Through the Man Charitable Trust and sponsorship of the Man
Booker Prizes, Man Group is committed to promoting literacy and
numeracy on a global scale, and to supporting charitable causes
more broadly.
Man Group plc is listed on the London Stock Exchange under the
ticker EMG.LN and is a constituent of the FTSE 250 Index. Further
information can be found at www.man.com.
*As at 31 March 2018. All investment management and advisory
services are offered through the investment "engines" of Man AHL,
Man Numeric, Man GLG, Man FRM and Man Global Private Markets
(GPM).
Forward looking statements and other important information
This document contains forward-looking statements with respect
to the financial condition, results and business of Man Group plc.
By their nature, forward-looking statements involve risk and
uncertainty and there may be subsequent variations to estimates.
Man Group plc's actual future results may differ materially from
the results expressed or implied in these forward-looking
statements.
The content of the websites referred to in this announcement is
not incorporated into and does not form part of this announcement.
Nothing in this announcement should be construed as or is intended
to be a solicitation for or an offer to provide investment advisory
services or to invest in any investment products mentioned
herein.
This announcement contains inside information.
This information is provided by RNS
The company news service from the London Stock Exchange
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