British hedge fund firm Man Group has reported growth in its funds under management (FUM) in 2019 as favourable investment movement offset net outflows.
Man’s AUM reached $117.7bn as of 31 December 2019, up 8% from $108.5bn a year ago.
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The growth was driven by positive investment movement of $10.1bn in 2019 versus a negative $7.7bn in the prior year.
Clients pulled out $1.3bn of money last year, compared to inflows of $10.8bn in 2018.
Statutory pre-tax profit rose 10% year-on-year to $307m while pre-tax profit on an adjusted basis surged 54% to $386m from $251m over the period.
The firm’s net revenue soared 22% to $1.11bn from $913m.
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By GlobalDataThe board recommended a final dividend of 5.1 cents per share, lowering the firm’s total dividend for 2019 to 9.8 cents per share that is said to be in line with its dividend policy.
Man CEO Luke Ellis said: “2019 was a year of solid growth and continued strategic progress at Man Group. We delivered strong absolute investment performance, making $10.1billion in investment gains for our clients, and closed the period with record funds under management. We also increased our adjusted profit before tax1 by 54%.
“Over the course of the year, we saw continued inflows into our alternative strategies, although overall we recorded a small outflow as our clients reduced their equity allocations. In the fourth quarter, we returned to net inflows and that momentum has continued into this year.”
