Man Group shares jump on real assets deal

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Man Group shares have jumped 13 per cent as it announces the acquisition of real assets business Aalto, which has $1.7bn assets under management, as well as positive third quarter results.

Shares had been down since the departure of chief executive Emmanuel Roman, who announced at the end of July he was moving to head up Pimco so that he could be based in the US rather than London.

Aalto, headquartered in London, specialises in real estate equity and debt strategies, including direct investments. It primarily serves institutional investors.

The deal, expected to complete in 2017, facilitates the launch of private markets business Man GPM.

The announcement comes as the asset manager reveals its assets for the third quarter increased 6 per cent to $80.7bn, boosted by $1.3bn net inflows.

Chief executive Luke Ellis says inflows were most driven by institutional clients seeking quant alternative and quant long only strategies.