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April 03, 2006 at 08:00 PM
LONDON (HedgeWorld.com)–The share price of Man Group jumped nearly 3% today when the world’s biggest listed hedge fund operator reported that profit before tax for the year ending March 31 will exceed market forecasts.
That values the group at ?7.6 billion ($13.1 billion,) or double its market capitalization recorded as recently as May 2005. The analysts’ consensus for pre-tax profit is about $1.2 billion, including net management fee income of $678 million.
The pre-close trading update and quarterly funds-under-management statement also reported that the firm’s latest product launch is expected to raise around $2 billion of client money – double forecasts. The product is structured as multiple offerings of the Man IP 220 vehicle in different currencies, targeting different regions.
Funds under management grew 4.8% during the quarter, to $48 billion. Private investor funds accounted for $29 billion and institutional funds $19 billion.
Redemptions were $5.9 billion for the year, including $2 billion in the quarter to March. Private investor redemptions for the year amounted to $3 billion.
