Man Group’s managed funds drop 4% due to losses in quantitative futures business

Asset manager Man Group (LSE: EMG) revealed a 4% decline in its funds under management during the third quarter ended 31 December 2009. The company said the fall was largely the result of poor investment performance of group’s managed quantitative futures trading business AHL, whose fund value dropped by US$1.2 billion during the quarter.

Funds under management fell from US$44.0 billion at the end of September to US$42.4 billion as at 31 December 2009.

"The financial third quarter is seasonally a quiet period for sales”, Man chief executive Peter Clarke commented, “The negative performance of AHL in December and a net institutional outflow for the quarter resulted in a 4% reduction in our funds under management.”

Overall the company’s funds saw a net outflow of money in the three months period with both private investors and institutional investors redeeming their investments, with a combined net outflow of US$1.1bn. As institutional clients withdrew US$1.4bn in the seasonally lower sales period, institutional net outflow was US$1bn, whilst US$1.1bn in sales to private investors partially offset redemptions leaving a net outflow of US$100 million.

Despite the drop in funds under management, the asset manager said that activity levels among investors and distributors remain high. Man has been receiving new assets among its onshore regulated products in Brazil, the UK and Continental Europe and has landed a significant 3 year pension fund deal. "Our new managed account business is seeing continued high levels of interest from institutional investors and we have just been selected by a large pension fund as the preferred provider for a mandate that could potentially reach around US$1 billion”, Clarke said. http://www.proactiveinvestors.co.uk/companies/news/12207/man-groups-managed-funds-drop-4-due-to-losses-in-quantitative-futures-business--12207.html