Trading conditions remained challenging for
While the positive trading tone has boosted assets under management from $58.4bn (£36.6bn) in December to $59.5bn in February, this is still well shy of the $69.1bn held last March. Headline comparisons were made difficult by Man's decision to change its year-end from March to December – so the latest accounting period covers only nine months.
The key issue for shareholders is the level of the dividend. So it was reassuring that the board has stated that 100 per cent of adjusted management fee income will be paid out each year as dividends, and other payments will be made as surplus capital becomes available. Dividend payments in the current financial year will total 22¢ per share, equating to a yield of almost 10 per cent.
Broker Numis Securities forecasts 2012 adjusted EPS of 14.2¢ (from 10.4¢ in 2011).
|ORD PRICE:||142p||MARKET VALUE:||£2.6bn|
|TOUCH:||142-143p||12-MONTH HIGH:||292p||LOW: 103p|
|DIVIDEND YIELD:||9.7%||PE RATIO:||22|
|NET ASSET VALUE:||223¢**||NET CASH:||$573m|
Man's progress is largely dependent on how markets perform, and last year hardly offered much encouragement as investors continued to take money off the table. However, the dividend offers a very attractive yield and supports the share price. Hold.
Last IC view: Hold, 112p, 27 Jan 2012