Man Group posts fall in profits
British hedge fund operator Man Group said Thursday that its annual profits sank, hit by a shrunken asset base as well as a poorer performance at its funds.
Net profit fell 11.5 percent to 445 million dollars (362 million euros) in the 12 months to March 2010 from 503 million dollars in the previous 2008/2009 year, Man Group said in a results statement.
Pre-tax earnings tumbled to 541 million dollars from 743 million dollars but ahead of the company's forecast of 530 million dollars.
Man Group said it had 39.4 billion dollars under its management as of March 31, which was a 16-percent drop from the same point last year.
However, the hedge fund giant issued an upbeat outlook after agreeing in March to buy US peer GLG Partners for 1.6 billion dollars. The deal is expected to complete in September.
"Man's proposed acquisition of GLG will further strengthen the company's competitive positioning and Man will continue to build upon these foundations, with a strong expectation over the coming years that it will grow assets and market share," chief executive Peter Clarke said.
"As we entered the new financial year, funds under management began to recover," he added.
- Dow Jones Newswires contributed to this report -
© 2010 AFP