Man Group reports 5% increase in Q1 AUM

19th Apr 2024 07:42

(Sharecast News) - Investment management firm Man Group reported an improvement in assets under manager in the first quarter, according to a trading update released on Friday, but net outflows during the period caught investors by surprise, causing shares to drop sharply.

The company said AUM totalled $175.7bn by 31 March, up from the $167.5bn reported at the end of the 2023 financial year.

The increase was a result of a $9.8bn positive swing in investment performance, slightly offset by $1.6bn in net outflows.

However, according to analysts at Jefferies, consensus forecasts were for positive net flows of $1.3bn.

In terms of product categories, notable increases in AUM were recorded for 'Japan equity', 'credit and convertibles' and 'global equity'.

"Occasional roadbumps are not unexpected at Man, but the fact that AUM - incl. Absolute Return, driven by strong performance and despite the outflows - is at record highs demonstrates the enduring and more consistent growth in mgmt. fee profitability," Jefferies said.

Nevertheless, the stock was down nearly 5% at 255.4p by 0857 BST.