Man Group posts £2.7bn outflow, confirms UK FSA insider dealing probe

Hedge fund manager Man Group has posted a $2.7bn outflow for the fourth quarter, taking total assets down to $55bn.

The outflow represents an 8% decline on a quarterly basis.

Man Group made a further $746m goodwill payment for its acquisition of GLG in 2010 over the quarter, in addition to the $233m set aside last June.

The firm admitted gross sales are likely to remain muted in the first half of the year until risk appetite normalises.

Manny Roman, the newly appointed chief executive officer of Man Group, said: “2012 was another tough year for Man. Trading conditions were highly challenging as markets continued to be dominated by political uncertainties in Europe and the US and macroeconomic risks,” he said.

“Investor appetite remained muted and as expected there was a further decline in Man’s product margin mix and revenues.”

Man Group also confirmed an employee working within its GLG subsidiary was arrested on suspicion of insider dealing earlier this week.

“Man has been informed by the FSA that the investigation concerns the individual’s actions as a private individual and not as an employee of Man or GLG,” said the group.

Man Group’s share price is down by around two-thirds since the start of 2011, due to client outflows, and is currently trading at 107p.

 

This article was first published on Investment Week

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