Man Group, one of the largest alternative investment managers, has announced a 62% increased in its adjusted profit before tax in 2014.
The firm attributes the increase in profits, which rose to $481 million (€424 million), to higher performance fees and cost savings, including a decrease in management fees.
Man Group also recorded an increase of 35% in funds under management (FUM), which grew to $72.9 billion according to the results for the year ended December 31, 2014.
The boost in FUM was driven by the acquisition of two US-based companies during 2014 – Numeric, a quant manager, and Pine Grove, a fund of fund credit manager – adding $16.2 billion to the firm’s FUM total.
Man Group’s net inflows for the year stood at $3.3 billion, marking a turn around from net outflows of $3.6 billion during 2013.
The firm also announced the intention to repurchase $175 million of shares.
Manny Roman, chief executive officer of Man, says: “2014 marked a year of progress for the group with strong performance at AHL [computer-run strategies], a full year of net inflows, the completion of the restructuring programme ahead of schedule and several key acquisitions and hires that have materially enhanced our investment capabilities and our North American business.”
He adds that a slowdown in sales across discretionary strategies and ongoing market volatility have ensured the firm remains cautious in its near-term outlook, but continues to pursue steady growth over time.
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