RMF exposure to Madoff

RNS Number : 1085K

Man Group plc

15 December 2008

 



Man Group plc

15 December 2008

RMF exposure to Madoff

Man Group makes the following statement in connection with the alleged securities fraud perpetrated by Madoff Securities. Man's exposure to this issue is through RMF, its predominantly institutional fund of funds business. 

RMF has approximately $360m invested in two funds that are directly or indirectly sub-advised by Madoff Securities and for which Madoff Securities acts as broker/dealer executing the investment strategy. This investment represents approximately 1.5% of RMF's funds under management, and 0.5% of funds under management for Man Group as a whole*. The two Madoff funds in question pursued a market neutral equity option strategy on S&P 100 stocks and index options. Madoff Securities is an SEC registered broker dealer; it is also an approved member of and subject to the rules of five self regulatory organisations, including FINRA, NASDAQ and NYSE Arca, Inc. Based on information available to date, it appears that a systematic and comprehensive fraud may have been committed, evading a range of structural controls.

RMF will continue to monitor and evaluate the situation on behalf of its investors and will take appropriate steps to seek recovery of investor assets. Performance of RMF's flagship Absolute Return Strategies 1 fund, even allowing for zero valuation of its allocation to Madoff advised assets, remains materially ahead of industry benchmarks for the calendar year to end November 2008.

* Estimates based on funds under management data as at 30 September 2008.

Enquiries

David Browne

Head of Group Funding & External Relations

[phone]

[e-mail]

Miriam McKay

Head of Investor Relations

[phone]

[e-mail]

Merlin PR

Paul Downes

[phone]

Paul Farrow

[phone]

About Man Group plc

Man is a world-leading alternative investment management business. With a broad range of funds for institutional and private investors globally, it is known for its performance, innovative product design and investor service. Man manages about USD61 billion and employs over 1,800 people in 13 countries worldwide.

The original business was founded in 1783 and this year celebrates its 225th anniversary. Today, Man Group plc is listed on the London Stock Exchange and is ranked in the top 50 companies of the FTSE 100 Index with a market capitalisation of about USD5.5 billion. 

Man Group is a member of the Dow Jones Sustainability World Index and the FTSE4Good Index. Man also supports many awards, charities and initiatives around the world, including sponsorship of the Man Booker literary prizes and the Man Group International Climate Change Award. Further information can be found at www.mangroupplc.com.

 

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