Alternative investment management firm, Man Group, has reported a 65% drop in profit before tax (PBT) in H1 2023 against the first half of 2022, driven largely by a decrease in core performance fees.
The firm recorded a PBT of US$137 million in H1 2023 compared to US$395 million in H1 2022.
Net revenues at the firm were down 40% when comparing H1 2023 to H1 2022, from US$855 million to US$513 million. Net management fees of US$460 million were 2% lower than last June.
The H1 2023 results saw the value of shares in Man Group drop 5% from £2.38 GBP on 31 July at market close to £2.26 on 1 August at market close.
However, the firm saw its assets under management (AUM) increase from US$143.3 billion as of 31 December 2022 to US$151.7 billion in H1 2023. AUM in H1 2023 was up 6.6% against H1 2022 (US$142.3 billion). Net inflows also reached US$2.6 billion for the six months ending 30 June 2023.
Analysts at Morgan Stanley described the negative share price reaction as “aggressive” and said the results were “broadly in line” with expectations.
The firm’s H1 2023 results are the last the firm will post under the stewardship of CEO Luke Ellis, who will be replaced by current president Robyn Grew on 1 September 2023.
In the firm’s results call, Ellis said: “Net inflows of $2.6 billion and positive investment performance of US$5.1 billion taken together with FX and other impacts of US$0.7 billion increased the AUM to US$151.7 billion at 30th of June. This was 6% higher compared with the 31st of December, reflecting another good period of organic growth and a new high for the firm.”
©Markets Media Europe 2023
