Man Group FUM jumps 4% on inflows to alternative funds

Man Group saw funds under management rise by 4% to $113.3bn in the three months to 30 September, thanks largely to $1.7bn each of net inflows and positive investment performance.

The firm said redemptions levels had normalised in the quarter after clients took the Covid-19 pandemic as a chance to rebalance portfolios.

It was Man’s alternative strategies that accounted for most of the inflows, with its long-only funds seeing $200m of outflows.

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However, the firm’s long-only products contributed most to the $1.7bn in positive investment performance as equity markets continued to recover from March’s market sell-off.

In addition, the US dollar’s weakness against both sterling and the euro resulted in $1.4bn in positive FX and other movements.

Meanwhile, as at quarter-end, 50% of the $43.7bn of performance-fee-eligible FUM was at, above, or within 5% of high watermark, the group added. Its AHL Alpha fund was the most significant individual component crystallising in the second half.

CEO Luke Ellis said Q3 performance was “good”, with “strong growth in FUM”. “Engagement with clients remains good, although there is increasing uncertainty due to upcoming political events and current Covid-19 trends,” Ellis added.

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“Our immediate priorities continue to be the health and well-being of our colleagues and the performance of our clients’ assets.

“Our diversified range of strategies, our people and technology and a sustainable business model, underpinned by our strong and liquid balance sheet, allow us to manage the firm for the long term.

“Man Group is well-placed to withstand volatile periods and to grow over time, delivering increasing value to all our stakeholders.”

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