Man Group’s assets under management dipped $3.3bn following a large client redemption in Q3, according to a trading update released this morning (17 October).
Overall, the firm recorded $5.5bn net outflows overall in the quarter. Some $400m was added through investment performance, while a further $1.8bn was gained through exchange rate fluctuations and performance-linked leverage movements to partly offset the redemptions.
The $7bn redemption from a single client in the firm’s systematic long-only range was flagged in the firm’s half-year results, released in July. Man Group said the withdrawal was higher than the $6.7bn previously announced due to positive investment performance.
Back in the July results, CEO Robyn Grew said: “Our third quarter flows will be impacted by a $6.7bn redemption from a single client in systematic long-only, following the strategic decision to switch their entire equities allocation to a passively-managed, index-based portfolio.
“The mandate has a net management fee margin of 21 basis points, and consequently it will have minimal impact on the firm’s profits. The institution first invested with us in 2011 and since then we are proud to have delivered net investment performance of 16% on an annualised basis and outperformed the benchmark by 2% per annum on average.”
AUM for the systematic long-only category dropped $4.1bn to $37.1bn in the three months to 30 September.
Man Group’s AUM, meanwhile, fell to $174.9bn from $178.2bn at the end of the previous quarter. However, this still represents a $13.7bn increase on Q3 of 2023.
This article first appeared in our sister publication, Portfolio Adviser.
