Man reports strong sales in second quarter
Man Group has reported strong sales of $5.7 billion for the last six months, including $2 billion in the second quarter, according to the company's pre -close trading update. In its funds under management statement for the six months ending September 30 2009, the group reported total funds under management estimated at $43.8 billion for the period. This is a rise of around $500 million compared with $43.3 billion as at June 30, 2009.
Man sold an estimated $5 billion to private investors in the six months to September 30, 2009, including estimated private investor sales of $1.6 billion in the second quarter.
Man experienced strong demand for its products throughout with good flows from Japan, Hong Kong, the Middle East, Europe and Latin America.
Redemption levels were lower in the second quarter, leading to an estimated private investor net inflow of $2.7 billion for the six months to September 30, 2009.
Taking into account investment movement, foreign exchange and other effects, private investor funds under management increased to $29.1 billion at September 30 2009 compared with $27.3 billion at June 30, 2009.
Man's institutional sales remained muted. However, institutional redemptions declined markedly. They are expected to total $1.7 billion for the second quarter compared with $3.6 billion in the first quarter.
This slowing of redemptions is set to continue, said the company, with quarterly redemptions to be paid on October 1 of $700 million. In total institutional investor funds under management at September 30, 2009 are expected to be $14.7 billion compared with $16 billion at June 30, 2009.
"Investors are increasingly selective as they assess their portfolio needs and reassess investment management providers," commented Peter Clarke, chief executive of Man. "They continue to focus on transparency, liquidity and, increasingly, onshore product offerings for accessing hedge fund returns," he added.
"There has been significant progress across our business over the summer," continued Clarke. "We have launched new products and entered new markets to meet increasing investor demand for onshore regulated products. Two new AHL Ucits funds are launching in Europe. We have had new regulated product approvals in our existing European and Asia Pacific markets and we have launched the first onshore product in Taiwan," he said.
The company has completed the establishment of a multi-manager business and continued to expand its managed account platform.
"Investor sentiment is continuing to improve across the industry," said Clarke. "The performance outlook is healthy and the prospects for sustained industry inflows are very promising," he concluded.
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