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GLG's Harker supports Man Group as AHL struggles
by Dylan Lobo on Oct 17, 2013 at 08:12
Strong performance across GLG's fund range helped cushion poor performance in Man Group's flagship AHL strategy.
In a third quarter trading update, Man said is AHL Diversified programme was down 6.6% over the period, with the main driver being the 'negative investment movement of $0.5 billion in quant strategies'. This was compounded by negative performance in its sister FRM strategy.
The twin impact sliced $0.3 billion from funds under management (FUM) during the quarter.
However, this was countered by decent performance at GLG, which contributed to FUM growth of $0.3 billion as the majority of its alternative strategies delivered positive performance over the quarter.
On top of this GLG's long only strategies contributed to positive investment movement of $0.4 billion during the quarter thanks largely to Stephen Harker's Japan Core Alpha fund, which rose 4.4% and the GLG Global Equity fund, which was up 7.4%.
Overall, the combined Man and GLG businesses saw net inflows of $0.7 billion over the quarter, while funds under management edged up from $52 billion to $52.5 billion.
Commenting on the numbers, Man chief executive Manny Roman said: The net inflow in the quarter was driven by institutional flows into discretionary alternatives and long only strategies. Inflows were linked primarily to stronger performance in the first half of the year and were characterised by sizeable asset flows from certain customers, albeit into relatively low margin products.
He added: 'The equity rally in July, followed by a sell-off in August, and volatility in financial markets in September provided challenging market conditions for hedge funds, and in particular CTAs. As a result performance in the majority of the AHL and FRM strategies was negative in the quarter, although performance at GLG overall was positive.
'Despite better flows in the third quarter we remain cautious in our outlook for asset flows going forward in the light of continued uncertainty in the macro-economic environment.'
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by Danielle Levy on Dec 12, 2013 at 09:03