In This Article:
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Absolute Investment Performance: $11.1 billion.
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Flagship Multi-Strategy Alternative Offering (Man 1783): Up 13.3%.
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Total Net Inflows: $900 million.
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Assets Under Management (AUM): $178.2 billion, 6% higher than December 31, 2023.
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Core Management Fee Earnings: Increased by 26% to $0.11 per share.
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Total Core Earnings Per Share: $0.71.
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Interim Dividend: $0.056 per share.
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Overall Investment Performance: 8.7% gains.
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Alternative Strategies Return: 6%.
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Long-Only Strategies Performance: 12%.
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Net Revenue: $761 million.
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Net Management Fees: $551 million, 20% higher than the previous year.
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Performance Fees: $170 million.
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Fixed Cash Costs: Increased to $202 million.
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Core Profit Before Tax: $257 million, up from $137 million last year.
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Net Tangible Assets: $779 million.
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Net Management Fee Margin: 63 basis points.
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Performance Fee Eligible AUM: $54.4 billion, with 70% at or above high watermark.
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Total Earnings Per Share: Increased by 92% to $0.0171.
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Capital Returns to Shareholders: $115 million in the first half of 2024.
Release Date: July 26, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Man Group PLC (MNGPF) delivered strong financial results for the first half of 2024, with absolute investment performance of $11.1 billion.
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The company achieved a 13.3% increase in its flagship multi-strategy alternative offering, Man 1783.
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Total net inflows were $900 million, which is 1.8% ahead of the industry, indicating growth in market share.
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Core management fee earnings increased by 26% to $0.11 per share, reflecting the quality of the business.
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The company has a strong and liquid balance sheet with net tangible assets of $779 million as of the end of June 2024.
Negative Points
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The asset management sector faced challenges in fundraising due to reduced realizations for private equity allocations and higher interest rates.
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There was a $6.7 billion redemption from a single client in systematic long-only strategies, impacting net flows.
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Fixed cash costs increased to $202 million, driven by an increase in headcount and planned investments.
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The compensation ratio decreased to 47%, which, although within the guided range, indicates increased costs.
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Net financial assets decreased, driven by lower performance fees, compensation payments, and dividends.
Q & A Highlights
Q: Could you provide details on the net flows for Varagon since its acquisition and any new client acquisitions? Also, could you elaborate on the launch of private wealth products in private credit? A: The integration of Varagon is progressing well, with over 1,000 client meetings conducted. The flows are expected in the second half of the year with the launch of an evergreen fund strategy, initially targeting institutional clients rather than wealth clients. Regarding buybacks, there is $11 million outstanding, which will be completed by the end of Q3, with further capital use considerations to be made later in the year. - Antoine Forterre, CFO