Man Group predicts ‘alpha opportunities’ ahead as assets jump 10%


Man Group says the current global environment is favourable for alpha opportunities as it reports AUM up 10 per cent in its latest trading update.

The alternatives specialist had funds under management of $88.7bn at 31 March compared to $80.9bn on 31 December.

It follows a difficult 2016, during which the company lost its chief executive Manny Roman to Pimco and took a hit to full-year profits on the back of outflows and poor performance from asset management arm GLG.

The strong quarter was bolstered by $3bn net inflows, positive investment performance adding $2.2bn and FX movements contributing a further $800bn, primarily driven by the weakening of the dollar against the Japanese yen, Australian dollar, and euro.

The asset manager also completed its acquisition of property investment manager Aalto, headquartered between Switzerland and the US, during the period, which added $1.8bn.

Emerging market debt strategies were the primary driver of net inflows in the group’s discretionary long only division, accounting for 70 per cent the total $2bn net inflows.

Chief executive officer Luke Ellis says a “good pipeline of interest from clients” coming into 2017 contributed to positive net inflows.

Looking forward, the global environment has the potential to create alpha opportunities and we see continuing near-term interest from clients.

“However, it is important to recognise that this is only one quarter and, as we have said before, flows are likely to vary on a quarterly basis given the institutional nature of our business.”