Key points
Fund under Management (FUM) up 8% to $78.7 billion (31 December 2014: $72.9 billion)
o Gross sales of $22.9 billion (2014: $21.9 billion)
o Redemptions of $22.6 billion (2014: $18.6 billion)
o Net inflows of $0.3 billion (2014: net inflows $3.3 billion)
o Investment movement of $2.4 billion (2014: $3.6 billion)
o FX translation effects and other movements of -$3.0 billion (2014: -$4.3 billion)
o Acquisition of Silvermine, NewSmith and the BAML fund of hedge funds portfolio completed during the first half of the year, adding $6.1 billion to FUM
Adjusted profit before tax (PBT) of $400 million in 2015 (2014: $481 million):
o Net management fee profit broadly in line with 2014
o Net performance fee profit down following a very strong year in 2014
Statutory PBT for the year ended 31 December 2015 of $184 million (2014: $384 million)
Proposed final dividend of 4.8 cents per share bringing total dividend for the year to 10.2 cents (2014: 10.1 cents)
Surplus regulatory capital of $453 million at 31 December 2015 (2014: $419m); $480 million pro-forma for inclusion of H2 profits and final dividend
Dividend and share repurchase
The Board confirms that it will recommend a final dividend of 4.8 cents per share for the financial year to 31 December 2015, giving a total dividend of 10.2 cents per share for the year. This dividend will be paid at the rate of 3.40 pence per share.
Man's dividend policy 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 (including accruals for future earn-out payments), 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.
This year we have decided to retain all of the surplus capital generated by the business to fund potential acquisitions. Last year, we reviewed a large number of acquisition opportunities but were unable to find transactions on sensible terms. The board believes that, given evolving market dynamics, there is sufficient probability of finding attractive acquisitions to execute this year that we have decided to retain all of our surplus capital. Conditions may of course change and we will review the decision in the course of this year and retain the ability to execute buybacks if advantageous to do so.
Dates for the 2015 final dividend
|
Ex-dividend date |
21 April 2016 |
|
Record date |
22 April 2016 |
|
Payment date |
13 May 2016 |
