Man Group profits down 40% to $193m

Man Group saw profits fall by more than 40% during the nine months leading up to 2012, the asset manager’s latest financial results show.

But the company says the new year has had a strong start, with assets under management rising on the back of better investment performance.

Man’s final results for the nine-month period ending December 31 reveal that statutory profit before tax dropped 40.4% from $324m (£203.8m) one year before to $193m.

The group’s management and other fees also fell from $1.45 billion to $1.16 billion, while performance fees more than halved from $203m to $94m.

Peter Clarke, chief executive of Man, says: “We have taken action to reduce costs while continuing to focus on meeting the needs of our investors, as we manage the growing demand for open-ended products as a proportion of total funds under management.” (article continues below)

Average funds under management for the period stood at $67.6 billion, down from the $52.4 billion seen in the prior year.

However, Man says the amount of money it runs increased marginally over the opening months of the new year, rising to $59.5 billion.

Clarke adds: “We have seen a positive start to the year in the first two months of 2012 … principally as a result of performance, with strong returns at GLG and a smaller positive contribution from AHL.”