Man' s (MAN) deals to acquire Silvermine, NewSmith and the hedge funds portfolio of Bank of America Merrill Lynch helped bump up the group's funds under management last year, but these purchases could not mask the effects of market volatility as well as the group's shift towards lower-margin institutional asset management.
While the hedge funds manager's latest purchases increased net management fees by 6 per cent to $759m (£546m), average net management fee margins continued to decline as the group increased its exposure to 'long-only' funds and institutional assets, the latter of which make up almost three-quarters of funds under management. A weaker performance from its AHL investment management division also pulled down the group's net performance fees by 11 per cent. Add to this $79m in acquisition-related costs and adverse currency movements and adjusted pre-tax profit fell to $400m.
Net inflows were also much lower at $300m, compared with $3.3bn the previous year. Investments into the group's Quant alternative products rose by more than a quarter, while total discretionary funds under management rose by 8 per cent to $78.7bn.
Analysts at Numis expect adjusted EPS of 14.7¢ this year, falling to 14.1¢ in 2017.
MAN (EMG) | ||||
|---|---|---|---|---|
| ORD PRICE: | 150.8p | MARKET VALUE: | £2.56bn | |
| TOUCH: | 150.7-150.9p | 12-MONTH HIGH: | 218p | LOW: 137p |
| DIVIDEND YIELD: | 4.9% | PE RATIO: | 21 | |
| NET ASSET VALUE: | 130p* | NET CASH: | $437m | |
| Year to 31 Dec | Turnover ($bn) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2011 | 1.66 | 320 | 14.2 | 22 |
| 2012 | 1.30 | -748 | -45.8 | 22 |
| 2013 | 1.16 | 56 | 3.0 | 7.9 |
| 2014 | 1.15 | 384 | 20.8 | 10.1 |
| 2015 | 1.14 | 184 | 10.1 | 10.2 |
| % change | -1 | -52 | -51 | +1 |
Ex-div: 21 Apr Payment: 13 May *Includes intangible assets of $1.5bn, or 88p a share £1=$1.386 | ||||
