Man Group posts 60% rise in annual profits

Man Group, the world’s biggest listed hedge fund company, has announced a 60% increase in annual profit to $2 billion, compared to the $1.95 billion analysts had forecast.

According to chief executive, Peter Clarke, a key part of the firm’s strong results stemmed from the performance of its AHL futures business, which, with no exposure to equities, proved particularly successful during the intense volatility in stock markets over the past nine months.

Mr Clarke added that the outlook for financial markets remains uncertain and periods of higher volatility may return. Against this backdrop, investors are likely to increase their focus on the long term benefits of diversification into non traditional assets.

The increase in funds under management in the year came after sales of $15.9 billion outpaced redemptions of $10.7 billion.

Net management fee income rose 21% to $1.1 million while performance fee income grew 161% to $936 million.

Meanwhile, Mr Stanley Fink, has announced that he is to retire from his post as deputy chairman in early July. Mr Fink joined Man Group in 1987 as finance director and then became chief executive in 2000 for 7 years. For a time, he was the highest paid chief in the FTSE 100.

Commenting on his retirement, Mr Fink said he has many commercial and philanthropic interests outside Man Group to which he is increasingly committed and eager to pursue these, and other opportunities, more fully.

Man Group celebrates its 225th Anniversary this year. The company currently employs over 1,600 people in 13 countries.

The group is well-known for sponsoring the Man Booker Prize, the Man Booker International Prize and the Man Asian Literary Prize.

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