Hedge fund manager Man Group (EMG) made two important acquisitions in the first half: it bought US-based manager Numeric, which has $14.7bn (£8.7bn) of funds under management, and Pine Grover, a fund of fund credit manager with $1bn under management. Chief executive Manny Roman said the acquisitions, due to be completed by the year-end, will enhance Man's offering for its clients and broaden its footprint in the US.
Analysts, nonetheless, expect Man's earnings to be broadly flat this year, given the ongoing decline of the higher-margin AHL business. Numis Securities has pencilled in pre-tax profit of $289m for the full year, giving EPS of 14¢ - down from $297m and 14¢ in 2013.
The group's all-important investment performance was mixed in the period. The AHL funds, which have been perennial underperformers, showed improvement: five of the six delivered good total returns in the first half, notably the Evolution and Diversified funds, as their momentum-based strategies benefited from trends in fixed income markets. But the actively managed funds under the GLG banner fared worse, as equity long-short strategies suffered. They ended the half year with a negative performance, and just six of the 14 funds delivered positive total returns.
Meanwhile, funds under management across the group grew 7 per cent to $57.7bn, led by an encouraging $2.8bn of net inflows.
| MAN GROUP (EMG) | ||||
|---|---|---|---|---|
| ORD PRICE: | 114p | MARKET VALUE: | £2.0bn | |
| TOUCH: | 113-114p | 12-MONTH HIGH: | 127p | LOW: 76p |
| DIVIDEND YIELD: | 4.8% | PE RATIO: | 71 | |
| NET ASSET VALUE: | 129¢* | NET CASH: | $820m | |
| Half-year to 30 Jun | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2013 | 619 | 122 | 5.4 | 2.6 |
| 2014 | 500 | 106 | 5.1 | 4 |
| % change | -19 | -13 | -6 | +54 |
Ex-div: 13 Aug Payment: 3 Sep £1=$1.68 *Includes intangible assets of $1.32bn, or 75¢ a share | ||||
