Man Group plc (LON:EMG), today announced Financial Results For The Year Ended 31/12/2018
Key points
· Funds under Management (FUM)1 of $108.5 billion (31 December 2017: $109.1 billion)
o Net inflows of $10.8 billion (2017: net inflows $12.8 billion)
o Negative investment movement of $7.7 billion (2017: positive $10.7 billion)
o FX translation and other movements of negative $3.7 billion (2017: positive $2.9 billion)
· Asset weighted outperformance versus peers1 across our strategies of 1.0% for the year ended 31 December 2018 (1.9% for the year ended 31 December 2017)
· Group run rate net management fee margin1 of 69 basis points at 31 December 2018
· Adjusted profit before tax (PBT)1 of $251 million in 2018 (2017: $384 million),
o Adjusted management fee PBT of $217 million (2017: $203 million)
o Adjusted performance fee PBT of $34 million (2017: $181 million)
· Statutory PBT for the year ended 31 December 2018 of $278 million (2017: $272 million)
· Recommended final dividend of 5.4 cents per share bringing total dividend for the year to 11.8 cents per share, up 9% (2017: 10.8 cents). The final dividend is equal to 4.06 pence per share (2017: 4.18 pence), and the total dividend for the year is equal to 8.94 pence per share (2017: 7.97 pence)
· Pro-forma surplus regulatory capital of around $340 million adjusted for second half earnings, our final dividend and the IFRS16 lease accounting impact
· Completed around $53 million of the $100 million share repurchase programme announced in October 2018 equating to 29 million shares
Luke Ellis, Chief Executive Officer of Man, said:
“2018 was a more difficult year for the asset management industry, characterised by periods of higher volatility which impacted performance across asset classes and investment styles. Against this backdrop we reported a decrease in performance fee profits but are pleased to have once again outperformed peers and made continued progress in areas we can influence. We have managed costs while investing for growth, further diversified to capture new opportunities and strengthened client relationships, helping us to achieve broad based net inflows of $10.8 billion.
Looking ahead, we have had a healthy number of new mandate wins but as clients respond to changes in the market and adjust their portfolios we have also seen a pick-up in redemptions. I remain confident that Man Group is structurally well positioned for the future with compelling investment propositions, deep client relationships and a competitive advantage in our experience of using financial technology to drive investment returns.”
