Man Group FY profits up by 51 percent

Man Group FY profits up by 51 percent

	Published : Thu, 01 Jun 2006 14:30 By : Phil Bateman Print this Story

LONDON - Hedge fund company Man Group PLC has reported a 51 percent increase in its full-year profits and has more than met expectations. The fund manager also exuded a positive outlook for the future thus sending its shares shooting up by 90 pence to 2429 pence in early trading on the markets.

The world's largest listed hedge fund firm manager said that pre-tax profits increased by 17 percent to $1.23 billion for the year ending March. Also profits before exceptionals jumped 51 percent $1.31 billion.

The group also said that funds under management increased by 16 percent at the end of March to $49.9 billion as against the $43.0 billion reported at the same time last year. Fund sales registered $9.1 billion, while private investor sales totaled $5.7 billion.

“I am delighted to report such strong growth in profits for the last financial year. Assets under management, which were $50bn at year end, have risen in the following two months to around $54bn currently," said Man Group Chief executive Stanley Fink.

“The Board is confident about the Group's prospects for the current year. Investment management performance has been positive over the first two months, with a strong April providing substantial performance fee income.”

The net performance fees for the group was $450 million as against the $119 million reported last year. Analysts were expecting this figure to be around $410 million. Man Group chairman Harvey McGrath said that business had never been better, "We have delivered outstanding investment results to the people who have invested money in our product range and that's why we have in turn earned substantial performance fee income. The business is larger and more profitable than it was before the May (stock market) correction."

The group also announced a final dividend of 54.6 cents and a total dividend of 85.8 cents per share.