LONDON (ShareCast) - (Sharecast News) - Man Group reported a 5% improvement in funds under management in its interim results on Wednesday, to $114.4bn (£94.02bn).
The FTSE 250 fund manager said it saw positive investment movement of $6.8bn in the six months ended 30 June, swinging from a negative $1.7bn in the same period a year earlier, while net outflows totalled $1.1b, compared to net inflows of $8.3bn a year earlier.

Positive foreign exchange translation and other movements totalled $0.2bn for the period, swinging from a negative $2.0bn a year ago.

Man Group's adjusted profit before tax rose 3% to $157m year-on-year.

Its adjusted management fee profit before tax was $83m, down from $120m year-on-year, which incorporated non-operating impacts of $21m from the foreign exchange hedge and the adoption of IFRS 16, as well as no associate income following the sale of the company's stake in Nephila in 2018.

Adjusted performance fee profit before tax was $74m, rising from $33m last year.

The company's adjusted earnings per share were up 6% to 8.6 cents, which the board said reflected higher performance fees and seed investment gains, the positive impact of a lower share count following share buybacks, and a decline in the net management fee margin from 71 basis points to 68 basis points, reflecting "strong growth" in lower margin strategies.

Its statutory profit before tax was $110m, up from $90m, while statutory earnings per share totalled 5.8 cents, up from 4.6 cents, with the board saying the increase reflected the adjusted earnings per share growth drivers it had described, and lower adjusting items.

Asset-weighted underperformance versus the firm's peers was 1.1% for the six month period, compared to outperformance of 1.0% for the year ended 31 December.

The board declared an interim dividend of 4.7 cents per share, down from 6.4 cents year-on-year.

It noted that its corporate reorganisation was successfully completed in May, which it said provided more flexibility in financing its business, with $150m tier 2 notes to be redeemed in full on 16 September.

"Absolute performance was strong in the first half of 2019, particularly in our quant alternative strategies, which drove a $5.9bn increase in funds under management and growth in profits," said chief executive Luke Ellis.

"Relative performance and flows were more mixed with outperformance and inflows into our quant alternative strategies and underperformance and outflows from our valuation biased strategies, with clients continuing to reduce their equity exposure coming into the third quarter."

Ellis said the company was entering the second half of 2019 with "good" performance fee earning potential, with 90% of Man AHL strategies at "high water mark" and the diversified nature of the business meaning that it remained "well-positioned" to navigate the current economic environment.

"We continue to focus on delivering superior risk adjusted performance for our clients and, in doing so, creating long-term value for our shareholders."

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