Man/GLG see $1 billion net outflows in Q4

Man Group and its newly merged subsidiary GLG saw $1 billion (£625 million) of net outflows in the fourth quarter of 2010, caused by a single investor switching out of the troubled European equity market.

Assets under management (AUM) ended the year at $68.6 billion, combining $40.5 billion in Man funds and $25.4 billion for GLG.

Investment returns were positive despite the net outflows, generating $2.8 billion for investors.

Leaving aside the withdrawal from European equities, Man’s higher-margin alternative products saw $0.1 billion of net inflows.

These included $1 billion of inflows into open-ended products, which saw the greatest demand within the asset class. (article continues below)

Man has also announced it is in “exclusive negotiations with a major European institutional client” to set up a platform of managed accounts with more than $1.5 billion in assets under management.

The deal is expected to conclude in February, Man says, and to be funded over the subsequent 10 months.

Man’s financial position remained solid at the end of the year. The firm had $1.8 billion in cash, despite contributing $32.5 million to the cost of a court case settlement in America.

Investors had sued the firm and other parties regarding statements made at the initial public offering of MF Global, a former subsidiary of Man Group, in 2007.