Man’s assets dip after £3.3bn outflow

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Man Group’s funds under management dropped 8.7 per cent in the opening six months of 2013 after investors pulled another $5bn (£3.3bn) from its funds.

The firm’s FUM stood at $52bn at the end of June, its latest interim results show, down from the $57bn seen at the start of the year. Man made $6.5bn in sales over the six-month period but this was offset by $11.5bn in redemptions.

In addition, the firm’s FUM saw a positive contribution of $2.5bn from its products’ investment performance but a negative $2.4bn coming from foreign exchange movements. Another $100m knocked off through “other movements”.

In terms of performance, Man’s flagship AHL Diversified Programme fund was down 3.1 per cent over the six months while GLG Multi Strategy – which is used as a key performance indicator for its discretionary subsidiary GLG – was up 5.1 per cent.

Man Group chief executive Manny Roman says: “While the first quarter of the year benefited from a more stable environment in financial markets, the second quarter was characterised by renewed volatility.

“Against this background, Man’s investment performance was varied: good in discretionary and challenging in trend following. In terms of flows, investor appetite remained muted as renewed market volatility tempered investors’ willingness to put their money to work. A sustained improvement in investment performance, particularly from AHL, remains the key prerequisite for an improvement in net flows.”