Man Group assets grow 4% on market recovery

British hedge fund manager Man Group on Friday reported a 4.4% rise in funds under management, as it saw a recovery in markets after a steep selloff earlier in the year when most of the world was under coronavirus-induced lockdowns.

Adds details from statement, background on markets

Oct 16 (Reuters) - British hedge fund manager Man Group EMG.L on Friday reported a 4.4% rise in funds under management, as it saw a recovery in markets after a steep selloff earlier in the year when most of the world was under coronavirus-induced lockdowns.

FUM as of September-end was $113.1 billion, higher than the $108.3 billion it reported as of June 30. Analysts at JP Morgan had estimated the September-end FUM to be $111.9 billion.

Net inflows during the three-month period was $1.7 billion, while positive investment performance was $1.7 billion.

The company, which has a trading history that spans more than 230 years, had seen an 8% fall in AUM in the first half of the year after several investors pulled out cash amid the pandemic-driven weakness in the markets.

However, markets have recovered from their March lows — when Wall Street's fear gauge .VIX touched levels last seen during the 2008 financial crisis — as investors have priced in the COVID-19 pandemic's economic impact.

"This (FUM growth) was driven by robust net inflows into alternatives as anticipated, as well as performance gains across both alternative and long-only strategies," Man Group Chief Executive Officer Luke Ellis said.

(Reporting by Muvija M in Bengaluru; editing by Uttaresh.V)

((Muvija.M@thomsonreuters.com; within UK: +44 20 7542 1810, outside UK: +91 80 61822698; Twitter: https://twitter.com/muvija_m;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More