Man’s FUM up 8% despite sharp outflows

Business-Growth-Drawing-Chart-Performance-700x450.jpgMan Group’s funds under management rose by 8 per cent in 2015 to reach $78.7bn (£56.2bn) however net inflows fell sharply in the wake of challenging trading conditions and lower risk appetite, according to the group.

The rise in funds was chiefly driven by the acquisition of Silvermine, NewSmith and the BAML fund of funds portfolio at the beginning of the year, which added $6.1bn.

But net inflows at the asset manager collapsed to $300m from $3.3bn in 2014.

Total adjusted profit before tax also decreased by 17 per cent to $400m compared to the previous year, mainly as a result of lower performance fees.

Man Group chief executive officer Manny Roman says while performance was “mixed” it was “reasonable against a difficult market backdrop”.

He asserts that the group delivered against its strategic objectives and continued to enhance its investment capabilities through the integration of its three acquisitions which completed in the first half of the year.

Roman says: “Looking forward, the on-going volatility in the markets in which we operate remains very challenging and, accordingly, the risk appetite of our clients might impact flows.

“However, we now have a more diversified offering and a range of attractive options for growth, which have strengthened the firm and enhanced our resilience as a business.”