Hedge fund Man Group (EMG) spent much of last year restructuring its cost base and strengthening the balance sheet - its target is to deliver $270m (£162m) by the end of 2015. But it made little or no progress in reducing its reliance on the underperforming AHL fund portfolio.
While the investment return on five of the six AHL investment strategies showed a sparkling return in the last three months of the year, they have all delivered a negative annualised return over the last three years. While the group net outflow of funds halved from $7.3bn to $3.6bn last year, total funds under management still fell from $57bn to $54bn. Inevitably, this reduced management fee income by 20 per cent to $967m.
The company's actively managed funds, which are marketed under the GLG brand, put up a better performance, with the key multi-strategy fund returning 5.1 per cent. In fact, GLG funds provided $155m of the $193m of performance fees earned by the group as a whole.
Analysts at Numis Securities are forecasting adjusted pre-tax profits for the coming year of $241m and EPS of 10.9¢ (from $297m and 14.1¢ in 2013).
| MAN GROUP (EMG) | ||||
|---|---|---|---|---|
| ORD PRICE: | 97p | MARKET VALUE: | £1.77bn | |
| TOUCH: | 96-97p | 12-MONTH HIGH: | 136p | LOW: 76p |
| DIVIDEND YIELD: | 4.9% | PE RATIO: | 54 | |
| NET ASSET VALUE: | 132¢* | NET CASH: | £992m | |
| Year to 31 Mar | Turnover ($bn) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2010 | 1.35 | 540 | 25.1 | 44 |
| 2011 | 1.66 | 320 | 14.2 | 22 |
| Year to 31 Dec | ||||
| 2011** | 1.25 | 190 | 7.7 | 16.5 |
| 2012 | 1.30 | -748 | -45.8 | 22 |
| 2013 | 1.16 | 56 | 3.0 | 7.9 |
| % change | -11 | - | - | -64 |
Ex-div: 23 Apr Payment: 16 May *Includes intangible assets of $1.35bn, or 74¢ a share * *Nine-month period £1=$1.663 | ||||
