Harvey McGrath, Chairman of Man Group, the fund of funds group, told the company AGM today that the company remains “very confident” of the prospects for the Group.
“Demand for our fund products has been very strong, both from private clients and institutions,” said McGrath. “Client money raised in the period since year-end was around $6.0 billion. Man’s two global launches, Man RMF Multi-Style and Man Global Strategies Diversified Series 2, accounted for $1.4 billion, with joint venture sales contributing $0.5 billion and other private investor sales $0.6 billion. Institutional sales, almost entirely at RMF, raised $3.5 billion.”
Group funds under management at today’s date are estimated to be around $39.5 billion, up from $38.5 billion at the end of March, and after taking into account the maturity of a major legacy account at RMF. Man says the maturity of this “low margin” product has allowed RMF to recycle and reprice high quality underlying capacity, so that RMF expects a material increase in its net profits. Redemptions, at $0.6 billion, were at the low end of annualised long term experience.
Man’s brokerage division, Man Financial, has also performed well, said McGrath, with ongoing growth in revenues from its traditional futures franchises, further successful recruitment of producer teams and the continued development of its matched principal businesses.’
RMF had a series of agreements with a major institution that matured at the end of June. The total funds under management through these agreements was around $3.1 billion. Of this, $0.6 billion is to be rolled into a new product for the institution and another $1.8 billion has been re-packaged and sold to other institutions – these amounts have been included in the figures shown above.