Man Group rallies as 2011 profits beat forecasts
Shares in Man Group (LON:EMG) rose 3.5 percent this morning to make it the top riser in the FTSE 100 after the hedge fund manager said that while its profits declined, they were still ahead of expectations.
In its full year report Man said that funds under management rose from US$69.1 million at the end of the year to US$71 million. Net inflows since the end of the year include US$2 billion from Man's Japanese fund Nomura Global Trend and US$400 million from Man IP220 GLG, the first guaranteed product to include GLG strategies.
Total income increased from US$1.45 billion last year to US$1.74 billion, which Man said was due to the acquisition of GLG in October 2010 and stable revenue margins. The financial performance was also helped by a US$10 million increase in gross management fee income following strong AHL investment performance late in the year.
Pre-tax profits fell from US$541 million a year ago to US$324 million. This, however, was ahead of the pre-close estimate of $280 million due to a strong investment performance in the last week of March. Adjusted pre-tax profit climbed from US$560 million in 2010 to US$599 million.
"Macro uncertainty has impacted markets and performance across most asset classes again recently, reinforcing investors' long-term focus on liquid and diversifying investment strategies," said chief executive Peter Clarke.
"Man is positioned to address these requirements through our focus on performance, our wide range of investment strategies, and the scale and resources we can apply to producing solutions for investor portfolios across the world. We are very well placed to meet investor demand."
Net cash currently stands at US$900 million, up from US$881 million at the end of March.
The company is declaring a final dividend of 12.5 cents per share to bring the total dividend for the year to 22 cents per share.
Related news
- London Mining remains on track to hit 2012 production target at Marampa
- Ceres Power Holdings reports significant improvements of its fuel cell products
- Oxford Catalysts Group shares advance as it announces first start-up of FT reactor
- Mariana Resources kicks off drilling programme at Las Calandrias gold-silver project
- Orogen Gold begins Phase 1 drilling programme at Deli Jovan
- Magnolia Petroleum on track to hit 100 wells target by end-2012
- Mwana Africa sells 15pct stake in Freda Rebecca gold mine for $405k - UPDATE
