Key points
Funds under management (FUM) down 5% to $54.1 billion (31 December 2012: $57.0 billion), FUM excluding guaranteed products up 1% to $51.8 billion (2012: $51.3 billion)
o Gross sales up 26% to $16.1 billion (2012: $12.8 billion)
o Redemptions down 2% to $19.7 billion (2012: $20.1 billion)
o Net outflows down 51% to $3.6 billion (2012: outflows of $7.3 billion), Q4 net inflows of $0.7 billion
o Investment movement of $4.3 billion (2012: $1.3 billion)
o FX translation effects and other movements of -$3.6 billion (2012: -$3.7 billion)
Adjusted profit before tax (PBT) up 8% to $297 million in 2013 (2012: $275 million)
o Adjusted net management fee PBT down 20% to $175 million (2012: $220 million)
o Adjusted net performance fee PBT up 122% to $122 million (2012: $55 million)
Statutory PBT for the year ended 31 December 2013 of $56 million (2012: $748 million loss)
On track to deliver total cost savings of $270 million by the end of 2015
Proposed final dividend of 5.3 cents per share bringing total dividend for the year to 7.9 cents
Intention to repurchase $115 million of shares
Surplus regulatory capital of $760 million at 31 December 2013, $550 million pro-forma for final dividend and share repurchase
Dividend and share repurchase
The Board confirms that it will recommend a final dividend of 5.3 cents per share for the financial year to 31 December 2013, giving a total dividend of 7.9 cents per share for the year. This dividend will be paid at the rate of 3.19 pence per share.
As announced in March 2012, Man's dividend policy going forward is to pay at least 100% of adjusted management fee earnings per share in each financial year by way of ordinary dividend. In addition, the Group expects to generate significant surplus capital over time, primarily from net performance fee earnings. Available surpluses, after taking into account required capital, potential strategic opportunities and a prudent buffer, will be distributed to shareholders over time, by way of higher dividend payments and/or share repurchases. Whilst the Board continues to consider dividends as the primary method of returning capital to shareholders, it will continue to execute share repurchases when advantageous.
In line with this policy it is our intention to launch a $115 million share repurchase programme to return surplus capital to shareholders, which will be conducted over the remainder of the year.
