1 May 2012
INTERIM MANAGEMENT STATEMENT for the quarter ended 31 March 2012
Key points
· Funds under Management (FUM) at 31 March 2012 of $59.0 billion
(31 December 2011: $58.4 billion)
· Reduced net outflows in the quarter of $1.0 billion comprising sales of $3.1 billion and redemptions of $4.1 billion
· Positive investment movement of $2.0 billion in the quarter, with strong performance in a broad range of GLG strategies
- Gains of 5% or more in the European long/short, North American Opportunities, Alpha Select, Global Opportunity, Global Convertibles, Market Neutral, European Distressed, Emerging Markets and Multi-Strategy alternative investment styles, with long only Japan Core Alpha up 21.4% and Global Equities up 13.9%
- Three quarters of performance fee eligible GLG FUM at or within 5% of high water mark at end March
- Man AHL Diversified plc up 0.8% in the year to 26 March; AHL was approximately 14% from peak on a weighted average basis at end March
· FX and other movements of a negative $0.4 billion in the quarter, driven by guaranteed product degears after negative AHL performance in the rebalancing period: further degears of $0.4 billion on 1 April and $0.6 billion on 1 May
· Financial position remains strong, with a regulatory capital surplus, after a capital buffer, of approximately $550 million and net cash of approximately $250 million.
Peter Clarke, Chief Executive of Man, said:
"After a strong start to the year, markets came back under pressure in March and drove greater dispersion in investment performance across our industry. GLG negotiated these conditions well and continued to make money for investors, but performance at AHL turned negative as markets reversed.
"Against this backdrop, redemptions reduced but investor sentiment remained fragile and we are yet to see an increase in sales.
"We remain very focussed on the key priorities of delivering performance for our investors, meeting client needs and improving operational efficiency across the business. The benefits of innovation and investment at AHL are starting to show through, and we have seen good interest in new products as well as for a range of our current strategies which are well positioned for these markets. We continue to take action on costs and are on track to deliver the $75 million of savings announced in January."
