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Man Group upbeat on record year for funds under management
By Josh White
Date: Tuesday 02 Mar 2021
LONDON (ShareCast) - (Sharecast News) - Man Group reported record high funds under management in its final results on Tuesday, rising to $123.6bn (£88.95bn) at the end of 2020, from $117.7bn a year earlier.
The FTSE 250 investment management company reported investment performance of $3.3bn for the year ended 31 December, down from $10.1bn in 2019, as it swung to net inflows of $1.8bn from outflows of $1.3bn in 2019.
It reported foreign exchange translation and other movements of $0.8bn for the year, up from $0.4bn.
Man said its core earnings per share decreased 23% to 16.2 US cents, while core management fee earnings per share rose 6% to 10.3 cents, and performance fee earnings per share declined 48% to 5.9 cents.
Statutory earnings per share were down 49% to 9.3 cents, and the company's statutory profit before tax was down 42% to $179m.
The firm's asset-weighted performance compared to its peers across strategies was -1.0%, compared to -1.1% in 2019, with alternative strategies outperforming, and valuation-focused long-only strategies underperforming.
Run rate core net management fees totalled $815m as at 31 December, with the firm's net management fee margin standing at 66 basis points.
Man outlined a new, progressive dividend policy, taking into account growth in overall earnings, with a recommended final dividend of 5.7 cents per share bringing the total dividend for 2020 to 10.6 cents per share, up 8% on the prior year.
In September, the company announced the intention to repurchase another $100m of shares.
Man Group said its had a "strong" balance sheet and liquidity position at year-end, with net financial assets of $716m, up from $674m.
"Last year was an exceptionally difficult time for much of the world, with Covid-19 fundamentally changing our day-to-day lives and how businesses operated," said chief executive officer Luke Ellis.
"I am proud of how the Man Group team pulled together and am delighted to deliver a strong set of financial results in a challenging environment, which demonstrate both growth and resilience.
"We have increased our management fee profits and our dividend to shareholders, and grown client assets to end the year at a new record high for funds under management."
Ellis said the company's ability to deal with the stresses of the year, and to grow the business, was "testament" to both its people and its technology platform.
"It is our combination of talent and technology that delivers superior returns for our clients and growth for our shareholders.
"Confidence in our strategy also drives our move to a new progressive dividend policy."
At 0834 GMT, shares in Man Group were up 1.38% at 155.82p.
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