Man Groupâ??s annual profit tumbled by nearly two-thirds while institutional investors continued to pull out billions of dollars after March 31.Assets under management by the UKâ??s biggest listed hedge fund group dropped 7.8 per cent to $44bn after the end of the fiscal year, reflecting net outflows of $4.4bn from institutional investors.
However, the group said private investors were starting to return and the launch of its integrated hedge fund business would leave it well positioned to make gains.
The group has seen net inflows of $2.2bn from private investors since March 31 and now has $28.5bn in private investor funds under management against $15.5bn in institutional funds.
In the past year pre-tax profits fell 64 per cent from $2.1bn to $743m on revenue that slid 23 per cent to $2.49bn. Those figures incÂluded $299m impairment on its investment in Ore Hill, a US-based credit specialist fund manager, and goodwill.
Peter Clarke, chief executive, said he was optimistic that institutional redemptions were tailing off. The group expected an additional $2bn in institutional outflows at the next redemption period at the end of June but less in September, he said.
Man also suffered investment losses on three of its funds, including its Swiss-based RMF fund-of-funds product, which suffered a potential loss of $360m through investments in Bernard Madoff.
