Alternative investment manager Man Group has reported an increase in net outflows to $2.2bn during the third quarter, concentrated in its lower margin products.
The increased levels of outflows compares with $1.4bn reported during the second quarter and were seen largely in institutional fund of funds and long-only GLG funds.
The group did report a 14 per cent rise in funds under management in the three months to 30 September, increasing from $52.7bn at the end of June to $60bn from $52.7bn.
However, this coincided with the closure of the acquisition of FRM, which added $8.2bn to funds under management. Positive investment movement of $500m was reported during the third quarter.
Man Group chief executive Peter Clarke says: “The flow environment continues to be challenging and this was reflected in lower sales in the quarter.
“Redemptions were in line with the levels experienced in the second quarter which resulted in increased net outflows, albeit in lower margin product lines.Investor sentiment, and consequently the outlook for flows, continues to be subdued.”
He adds: “Against this backdrop, our focus remains on delivering performance for our investors and improving efficiency.
“We continue to attract high quality talent from the industry to bolster existing investment teams and to launch new product lines. We remain on track to deliver the cost savings announced in H1 [first half].”