Trading statement - Q3 2022

RNS Number : 3235D

Man Group plc

19 October 2022

 

Press Release

19 October 2022

TRADING STATEMENT FOR THE QUARTER ENDED 30 SEPTEMBER 2022

Investment performance continues to be a key differentiator

Key points

· Assets under management (AUM) of $138.4 billion as at 30 September 2022 (30 June 2022: $142.3 billion)

o  Strong investment performance of $1.6 billion from absolute return strategies

o  Net outflows of $0.5 billion during a very difficult quarter for the asset management industry

o  Negative FX impact of $4.5 billion, primarily from US dollar strength, partially offset by performance-linked leverage movements

AUM movements for the three months ended 30 September 2022

$bn	AUM at 30 Jun 2022	Net flows	Investment performance	FX & other 1	AUM at 30 Sep 2022
Absolute return	49.3	(1.5)	1.6	(0.4)	49.0
Total return	31.2	(1.0)	(0.2)	(1.0)	29.0
Multi-manager solutions	16.3	3.4	0.1	0.0	19.8
Alternative	96.8	0.9	1.5	(1.4)	97.8
Systematic long-only	28.2	(0.4)	(1.2)	(0.8)	25.8
Discretionary long-only	17.3	(1.0)	(0.5)	(1.0)	14.8
Long-only	45.5	(1.4)	(1.7)	(1.8)	40.6
Total	142.3	(0.5)	(0.2)	(3.2)	138.4

AUM by category

$bn	30 Sep 2021	31 Dec 2021	31 Mar 2022	30 Jun 2022	30 Sep 2022
Absolute return	39.9	41.2	46.0	49.3	49.0
Man Institutional Solutions2	11.1	11.0	11.9	12.7	12.5
AHL Alpha	7.9	8.6	11.4	13.0	11.6
AHL Dimension	5.4	5.5	5.7	5.9	6.1
AHL Evolution	4.5	4.7	4.9	5.3	5.5
GLG equity	5.1	5.5	5.3	4.8	4.7
AHL Diversified	1.4	1.3	1.4	1.5	1.6
Other3	4.5	4.6	5.4	6.1	7.0
Total return	34.6	35.4	35.0	31.2	29.0
AHL TargetRisk	16.6	18.7	17.8	15.1	13.9
Alternative Risk Premia	8.8	8.9	9.1	8.2	7.6
CLOs and other	4.8	3.7	3.8	3.9	3.7
Global Private Markets	2.8	3.0	3.3	3.1	3.0
Emerging markets fixed income	1.6	1.1	1.0	0.9	0.8
Multi-manager solutions	14.1	15.0	15.9	16.3	19.8
Infrastructure & direct access	8.1	9.1	9.5	9.6	12.9
Segregated	5.4	5.4	5.9	6.1	6.2
Diversified and thematic FoHF	0.6	0.5	0.5	0.6	0.7
Systematic long-only	30.0	36.1	34.3	28.2	25.8
Global equity	13.3	18.9	17.7	13.8	12.8
International equity	7.6	8.0	8.0	6.9	6.2
Emerging markets equity	7.4	7.4	7.0	6.1	5.8
US equity	1.7	1.8	1.6	1.4	1.0
Discretionary long-only	20.9	20.9	20.2	17.3	14.8
Credit and convertibles	5.0	5.5	5.4	4.8	4.3
Japan equity	4.2	3.7	4.3	4.0	3.6
UK equity	4.7	4.7	4.5	4.0	3.3
Europe ex-UK equity	3.0	3.2	2.5	1.7	1.2
Emerging markets fixed income	1.9	1.9	1.8	1.5	1.2
Other4	2.1	1.9	1.7	1.3	1.2
Total	139.5	148.6	151.4	142.3	138.4

Investment performance

		Return (net of fees)			Annualised return (net of fees)
		3 months to 30 Sep 2022	9 months to 30 Sep 2022		3 years to 30 Sep 2022	5 years to 30 Sep 2022	Inception to 30 Sep 2022
Absolute return
AHL Alpha	5	3.7%	15.3%		8.6%	8.1%	10.7%
AHL Dimension	6	6.2%	12.7%		3.5%	4.6%	5.1%
AHL Evolution	7	-1.9%	8.8%		11.9%	9.9%	12.8%
AHL Diversified	8	5.2%	23.2%		10.6%	9.8%	11.2%
GLG Alpha Select Alternative	9	2.7%	6.6%		7.3%	7.3%	4.8%
GLG Event Driven Alternative	10	2.3%	1.0%		7.0%		6.8%
GLG Global Credit Multi Strategy	11	-1.1%*	-1.0%*		4.1%*	4.2%*	11.0%*
Total return
AHL TargetRisk	12	-3.4%	-17.7%		0.3%	5.9%	6.9%
Alternative Risk Premia	13	6.5%	11.8%		2.9%	3.9%	4.5%
GLG Global Emerging Markets Debt Total Return	14	0.5%	4.9%		2.4%	1.3%	2.2%
Multi-manager solutions
FRM Diversified II	15	1.4%*	2.1%*		5.9%*	3.6%*	4.1%*
Systematic long-only
Numeric Global Core	16	-4.1%	-23.1%		5.3%	3.5%	8.2%
Relative return		2.1%	2.4%		0.7%	-1.8%	0.7%
Numeric Europe Core	17	-5.2%	-19.7%		2.1%	2.1%	7.8%
Relative return		-1.1%	-2.3%		0.3%	-0.5%	2.2%
Numeric Emerging Markets Core	18	-11.8%	-26.5%		1.2%	-1.5%	3.2%
Relative return		-0.2%	0.7%		3.3%	0.3%	2.2%
Discretionary long-only
GLG Continental European Growth	19	0.1%	-27.2%		3.3%	3.1%	8.4%
Relative return		2.4%	-10.3%		1.0%	0.1%	3.1%
GLG Japan CoreAlpha Equity	20	-3.6%	10.4%		8.8%	3.3%	4.2%
Relative return		-2.8%	15.9%		1.3%	-1.0%	1.7%
GLG Undervalued Assets	21	-4.0%	-10.0%		-1.5%	-0.3%	4.8%
Relative return		-0.5%	-2.2%		-2.3%	-2.4%	0.5%
GLG High Yield Opportunities	22	-4.3%	-15.2%		3.4%		4.6%
Relative return		-2.7%	2.0%		6.6%		5.7%
Indices
HFRX Global Hedge Fund Index	23	0.5%	-4.6%		2.7%	1.7%
HFRI Fund of Funds Conservative Index	23	0.4%	-1.3%		4.7%	3.8%
HFRI Equity Hedge (Total) Index	23	-2.3%	-13.8%		6.2%	4.4%
HFRX EH: Equity Market Neutral Index	23	1.2%	-1.2%		-1.6%	-2.1%
Barclay BTOP 50 Index	24	2.6%	19.4%		10.5%	7.8%

*Estimated

Past or projected performance is no indication of future results. Financial indices are used for illustrative purposes only and are provided for the purpose of making a comparison to general market data as a point of reference and should not be construed as a true comparison to the strategy.

The information herein is being provided solely in connection with this press release and is not intended to be, nor should it be construed or used as, investment, tax or legal advice, any recommendation or opinion regarding the appropriateness or suitability of any investment or strategy, or an offer to sell, or a solicitation of an offer to buy, an interest in any security, including an interest in any fund or pool described herein.

About Man Group

Man Group is a global, technology-empowered active investment management firm focused on delivering alpha and portfolio solutions for clients. Headquartered in London, we manage $138.4 billion²⁵ and operate across multiple offices globally.

We invest across a diverse range of strategies and asset classes, with a mix of long-only and alternative strategies run on a discretionary and quantitative basis, across liquid and private markets. Our investment teams work within Man Group's single operating platform, enabling them to invest with a high degree of empowerment while benefiting from the collaboration, strength and resources of the entire firm. Our platform is underpinned by advanced technology, supporting our investment teams at every stage of their process, including alpha generation, portfolio management, trade execution and risk management.

Our clients and the millions of retirees and savers they represent are at the heart of everything we do. We form deep and long-lasting relationships and create tailored solutions to help meet their unique needs. We recognise that responsible investing is intrinsically linked to our fiduciary duty to our clients, and we integrate this approach broadly across the firm.

We are committed to creating a diverse and inclusive workplace where difference is celebrated and everyone has an equal opportunity to thrive, as well as giving back and contributing positively to our communities. For more information about Man Group's global charitable efforts, and our diversity and inclusion initiatives, please visit: https://www.man.com/corporate-responsibility

Man Group plc is listed on the London Stock Exchange under the ticker EMG and is a constituent of the FTSE 250 Index. Further information can be found at www.man.com

Important information

The content of the websites referred to in this announcement is not incorporated into and does not form part of this announcement. Nothing in this announcement should be construed as or is intended to be a solicitation for or an offer to provide investment advisory services or to invest in any investment products mentioned herein.

Enquiries

Karan Shirgaokar

Head of Investor Relations

[phone]

[e-mail]

Georgiana Brunner

Head of Communications

[phone]

[e-mail]

Neil Doyle

FTI Consulting

[phone]

[e-mail]

Notes

1  Other movements principally relate to maturities and leverage movements.

2  Man Institutional Solutions includes AHL Institutional Solutions, which invests into a range of AHL strategies including AHL Alpha, AHL Dimension and AHL Evolution.

3  Includes other AHL absolute return, Numeric absolute return and GLG credit absolute return strategies.

4  Includes other equity and multi-asset strategies.

5  Represented by AHL Alpha plc from 17 October 1995 to 30 September 2012, and by AHL Strategies PCC Limited: Class Y AHL Alpha USD Shares from 1 October 2012 to 30 September 2013. The representative product was changed at the end of September 2012 due to the provisioning of fund liquidation costs in October 2012 for AHL Alpha plc, which resulted in tracking error compared with other Alpha Programme funds. Both funds are valued weekly; however, for comparative purposes, statistics have been calculated using the best quality price that is available at each calendar month end, using estimates where a final price is unavailable. Where a price, either estimate or final is unavailable on a calendar month end, the price on the closest date prior to the calendar month end has been used. Both of the track records have been adjusted to reflect the fee structure of AHL Alpha (Cayman) Limited - USD Shares. From 30 September 2013, the actual performance of AHL Alpha (Cayman) Limited - USD Shares is displayed.

6  Represented by AHL Strategies PCC Limited: Class B AHL Dimension USD Shares from 3 July 2006 to 31 May 2014, and by AHL Dimension (Cayman) Ltd - F USD Shares Class from 1 June 2014 until 28 February 2015 when AHL Dimension (Cayman) Ltd - A USD Shares Class is used. Representative fees of 1.5% Management Fee and 20% Performance Fee have been applied.

7  Represented by AHL Evolution Limited adjusted for the fee structure (2% p.a. management fee and 20% performance fee) from September 2005 to 31 October 2006; and by AHL Strategies PCC: Class G AHL Evolution USD from 1 November 2006 to 30 November 2011; and by the performance track record of AHL Investment Strategies SPC: Class E AHL Evolution USD Notes from 1 December 2011 to 30 November 2012. From 1 December 2012, the track record of AHL (Cayman) SPC: Class A1 Evolution USD Shares has been shown. All returns shown are net of fees.

8  Represented by Man AHL Diversified plc from 26 March 1996 to 29 October 2012, and by Man AHL Diversified (Guernsey) USD Shares - Class A from 30 October 2012 to date. The representative product was changed at the end of October 2012 due to legal and/or regulatory restrictions on Man AHL Diversified plc preventing the product from accessing the Programme's revised target allocations. Both funds are valued weekly; however, for comparative purposes, statistics have been calculated using the best quality price that is available at each calendar month end, using estimates where a final price is unavailable. Where a price, either estimate or final is unavailable on a calendar month end, the price on the closest date prior to the calendar month end has been used.

9  Represented by Man GLG Alpha Select Alternative IL GBP; AUM included within GLG equity under the absolute return category.

10  Represented by Man GLG Event Driven Alternative IN USD; AUM included within GLG equity under the absolute return category.

11  Represented by GLG Market Neutral Fund - Class Z Restricted - USD until 31 August 2007. From 1 September 2007, Man GLG Global Credit Multi Strategy CL IL XX USD unrestricted; AUM included within Other under the absolute return category.

12  Represented by Man AHL TargetRisk class I USD.

13  Represented by Man Alternative Risk Premia Class A USD.

14  Represented by Man GLG Global Emerging Markets Debt Total Return Class I USD; AUM included within Emerging markets fixed income under the total return category.

15  Represented by FRM Diversified II Fund SPC - Class A USD ('the fund') until April 2018 then Class A JPY hedged to USD thereafter. However, prior to Jan 2004, FRM has created the FRM Diversified II pro forma using the following methodology: i) for the period Jan 1998 to Dec 2003, by using the returns of Absolute Alpha Fund PCC Limited - Diversified Series Share Cell ('AA Diversified - USD') adjusted for fees and/or currency, where applicable. For the period Jan 2004 to Feb 2004, the returns of the fund's master portfolio have been used, adjusted for fees and/or currency, where applicable. Post Feb 2004, the fund's actual performance has been used, which may differ from the calculated performance of the track record. There have been occasions where the 12-months' performance to date of FRM Diversified II has differed materially from that of AA Diversified. Strategy and holdings data relates to the composition of the master portfolio; AUM included within Diversified and thematic fund of hedge funds (FoHF) under the multi-manager category.

16  Performance relative to the MSCI World. This reference index is intended to best represent the strategy's universe. Investors may choose to compare returns for their accounts to different reference indices, resulting in differences in relative return information. Comparison to an index is for informational purposes only, as the holdings of an account managed by Numeric will differ from the securities which comprise the index and may have greater volatility than the holdings of an index.

17  Performance relative to the MSCI Europe (EUR). This reference index is intended to best represent the strategy's universe. Investors may choose to compare returns for their accounts to different reference indices, resulting in differences in relative return information. Comparison to an index is for informational purposes only, as the holdings of an account managed by Numeric will differ from the securities which comprise the index and may have greater volatility than the holdings of an index; AUM included within International equity under the systematic long-only category.

18  Performance relative to MSCI Emerging Markets. This reference index is intended to best represent the strategy's universe. Investors may choose to compare returns for their accounts to different reference indices, resulting in differences in relative return information. Comparison to an index is for informational purposes only, as the holdings of an account managed by Numeric will differ from the securities which comprise the index and may have greater volatility than the holdings of an index.

19  Represented by Man GLG Continental European Growth Fund Class C Accumulation Shares. Relative return shown vs FTSE World Europe Ex UK (GBP, GDTR); AUM included within Europe ex-UK equity under the discretionary long-only category.

20  Represented by Man GLG Japan CoreAlpha Fund - Class C converted to JPY until 28 January 2010. From 1 February 2010 Man GLG Japan CoreAlpha Equity Fund - Class I JPY is displayed. Relative return shown vs TOPIX (JPY, GDTR); AUM included within Japan equity under the discretionary long-only category.

21  Represented by Man GLG Undervalued Assets Fund - C Accumulation Shares. Relative return shown vs FTSE All Share (GBP, NDTR); AUM included within UK equity under the discretionary long-only category.

22  Represented by Man GLG High Yield Opportunities I EUR. Relative return is shown against ICE BofA Global High Yield Index (EUR, TR) Hedged benchmark. AUM included within Credit and convertibles under the discretionary long-only category.

23  HFRI and HFRX index performance over the past 4 months is subject to change.

24  The historical Barclay BTOP 50 Index data is subject to change.

25  As at 30 September 2022. All investment management and advisory services are offered through the investment engines of Man AHL, Man Numeric, Man GLG, Man FRM, Man Global Private Markets (GPM) and Man Solutions.

 

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