The Motley Fool

Man Group Plc Posts $5bn In Client Outflows

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

Former FTSE100 firm Man Group Plc (LSE: EMG) today reported that clients withdrew money for an eighth consecutive quarter, as the hedge fund firm faces more poor performance from its flagship AHL fund.

Client outflows for the first half of the year (through 30 June) were $5bn, the company said — with $3.7bn being withdrawn from its funds in the first quarter and a slight improvement in the second quarter as clients withdrew “just” $1.3bn.  

One Killer Stock For The Cybersecurity Surge

Cybersecurity is surging, with experts predicting that the cybersecurity market will reach US$366 billion by 2028more than double what it is today!

And with that kind of growth, this North American company stands to be the biggest winner.

Because their patented “self-repairing” technology is changing the cybersecurity landscape as we know it…

We think it has the potential to become the next famous tech success story. In fact, we think it could become as big… or even BIGGER than Shopify.

Click here to see how you can uncover the name of this North American stock that’s taking over Silicon Valley, one device at a time…

Though total outflows weren’t as bad as analysts had expected — and shares were actually up today on the interim management figures — the trend is still an ugly one.

Funds under management dropped 9% to $52bn for the first six months of the year, reflecting sales of $6.5bn and redemptions of $11.5bn. The group said it made a first-half adjusted profit before tax of $134m.

Man Group reported that the majority of the increase in sales between the first and second quarters came from strong sales of the Japan CoreAlpha strategy, which raised $1.2bn in the second quarter while other key strategies slipped.

Manny Roman, who took over as CEO earlier this year, has no easy job as he tries to win back clients and revive the struggling Man Group.

“Man’s investment performance was varied: good in discretionary and challenging in trend following,” Roman said.

“In terms of flows, investor appetite remained muted as renewed market volatility tempered investors’ willingness to put their money to work. A sustained improvement in investment performance, particularly from AHL, remains the key prerequisite for an improvement in net flows.”

Man Group’s shares have slipped since late May, after the flagship computer fund AHL was hit by a sell-off in bond and equity markets, as investors feared the U.S. Federal Reserve would soon cut back on its bond-buying policies.

CEO Roman commented:

Looking forward, trading conditions remain tough and we do not see any improvement in the near-term outlook. However our focus on investment performance, together with the actions we have taken to diversify the Group’s investment management activities, enhance distribution, de-risk our balance sheet and reduce our infrastructure costs mean we are better placed to cope with such circumstances. We intend to continue with this approach but it will take time.”

No doubt, investors today have to decide how much time they’re willing to give Roman as he works to reverse the trends at Man Group. Perhaps the interim dividend of 2.6 cents per share to be paid in September will help.

If you’re less patient and would prefer more stable investments that you can put your money in today, turn your attention to the shares featured in our latest report, “5 Shares to Retire On.”

We profile five UK companies we believe should anchor any investor’s portfolio – and pay you dividends too!

Full details are inside, so click here to download your free copy today.

> Jill does not own shares of any company mentioned.

One Killer Stock For The Cybersecurity Surge

Cybersecurity is surging, with experts predicting that the cybersecurity market will reach US$366 billion by 2028more than double what it is today!

And with that kind of growth, this North American company stands to be the biggest winner.

Because their patented “self-repairing” technology is changing the cybersecurity landscape as we know it…

We think it has the potential to become the next famous tech success story.

In fact, we think it could become as big… or even BIGGER than Shopify.

Click here to see how you can uncover the name of this North American stock that’s taking over Silicon Valley, one device at a time…

Our 6 'Best Buys Now' Shares

Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.

So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we're offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our 'no quibbles' 30-day subscription fee refund guarantee.

Simply click below to discover how you can take advantage of this.