Man Group Shares Surge on Strong Fund Inflows, Buyback

LONDON—Shares in Man Group PLC, one of the world's biggest hedge-fund firms, soared Friday on news of stronger-than-expected investor inflows and plans for a share buyback.

Man Group, which has been trying to revive its fortunes in recent years after large outflows in the wake of the credit crisis, posted $1.3 billion of net inflows for the three months to end-September. That was well ahead of analyst forecasts of around $500 million, with growth driven by appetite for the firm's computer-driven funds.

The firm also said it would buy back up to $100 million of shares over the next 12 months.

Man Group's shares, which were down 38% this year before today's announcement, jumped 13% in early London trading.

"The assets-under-management update is reassuring, and the buyback welcome," said analysts at Bank of America Merrill Lynch, who rate the shares a buy.

The London-based firm, whose assets rose 6% during the quarter to $80.7 billion, is widely viewed as a bellwether for an industry that is struggling to convince investors that its often lackluster returns are worth the high fees charged.

In July, Man Group posted a slump in performance fees following a torrid six months for many of its funds, dragging down overall profit 65%.

Man Group, which has made a string of acquisitions in recent years to diversify away from its flagship computer-driven fund, also said it was buying Aalto Invest Holding AG. The U.S. and Europe-based real-estate fund manager runs $1.7 billion in assets and will help drive Man's expansion into private assets.

Man will pay $25 million in the deal, two-thirds of which will be in cash and the remainder in new shares, plus up to $207 million, depending on income from management fees.

--Razak Musah Baba contributed to this article.

(END) Dow Jones Newswires

October 14, 2016 05:45 ET (09:45 GMT)

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