Annual profits tumble at Man Group

29th Feb 2024 10:17

(Sharecast News) - Man Group posted a slump in annual profits on Thursday, despite a jump in assets under management, after performance fees tumbled.

The world's largest listed hedge fund reported a 17% increase in AUM in the year to December end to $167.5bn.

The uplift was in part attributable to the acquisition of Varagon Capital Partners, which Man Group completed in September.

Core net management fee revenue also rose, up 4% at $963m. But core performance fees, which are paid by clients on the back of successful investment strategies, tumbled 77% to $180m.

As a result, net revenues fell 29% to $1.2bn while pre-tax profits slumped 56% to $340m.

Robyn Grew, who took over as chief executive from Luke Ellis in September, said: "2023 was a year that defied market expectations, as the world grappled with macroeconomic uncertainty and unforeseen geopolitical events.

""Against that backdrop, I'm pleased to report a solid set of results."

Looking ahead, Grew - Man Group's first female chief executive - acknowledged that "economic trends, geopolitical dynamics, inflation and their interplay on the global stage persist in their unpredictability, continuing to create challenges in both public and private markets".

But she continued: "We have built trusted partnerships with sophisticated allocators globally, enabling us to gain a deep understanding of their needs and challenges.

"This contributed to the considerable progress we made during the year, and informed our strategy going forward."

As at 1015 GMT, shares in Man Group were trading 2% higher at 246.4p.

Around two-thirds of Man Group's assets are invested in alternative investments including hedge fund strategies and direct lending.