Man Group reports it has been ‘resilient in unprecedented circumstances’ but lost $10.7 billion in Q1

News Team, 17/04/2020

Listed hedge fund manager Man Group today said that its funds under management fell 11.5 percent to $104.2 billion in the first quarter.

The firm lost $10.7 billion on negative investment performance and $3.3 billion from currency and other movements.

The firm’s long-only and discretionary strategies were worst hit during the quarter, losing $10 billion in investment movement and another $1.4 billion in outflows.

Man’s worst-performing fund, the Man GLG Undervalued Assets fund, a long-only strategy, lost 34.5 percent over the period.

However the firm, which had $117.7 billion in assets at December 31, took in $500 million in new investor money during the quarter.

Luke Ellis, Chief Executive Officer of Man Group, said:  "The health and wellbeing of our colleagues and the performance of our clients' assets are our foremost priorities in what has been an unprecedented and testing period for everyone. I am pleased to report that all parts of the firm have pulled together and have done an exceptional job, particularly our technology teams whose outstanding efforts meant we have been able to keep operating as usual despite everyone working remotely.

"Given the extreme volatility in all markets, we are pleased to have outperformed peers on an asset weighted basis across the firm by 2.5% in the first quarter, and to see our absolute return strategies make gains for clients despite the large sell off seen. We saw net inflows in the quarter and continue to win mandates but we have seen a recent increase in redemptions as clients adjust their allocations in response to the market moves and heightened economic uncertainty.

"Our balance sheet and liquidity position remain robust, and we will proceed with our dividend as announced and continue with our share buyback as planned."

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