NEW YORK (HedgeWorld.com) — Total assets managed by Man Group plc are around US$43 billion, up from US$37.8 billion a year ago. In addition, the firm estimates that earnings per share are up about 20% for the 12 months ending March 31.
This increase in earnings comes from management fee income, which rose about 25% because of the growth in funds under management, and brokerage operations, where net income is up more than 15%.
Performance fees, however, are a weak spot. Man’s managed futures investment program, AHL, suffered losses in early 2004. As a result, its performance fee income is down. But Man reported that most investment programs, including AHL, RMF and Glenwood, earned performance fees in the second half of the year.
“Net performance fee income for the year will be at the top end of market expectations although it will be materially below the level of last year, reflecting a smaller contribution from AHL,” according to the statement.
Redemptions during the 12 months were US$4.2 billion. The firms said that as a percentage of funds under management, this is at the low end of long-term experience.
Of total assets, private investors accounted for US$25 billion and institutions for US$18 billion. Sales remained robust during the first three months of 2005, at US$1.5 billion.
Contact Bob Keane with questions or comments at: firstname.lastname@example.org.