Man Group Sees Record AUM but Profits Plummet in 2023

Man Group, the world's largest listed hedge fund firm based in London, reported a significant drop in profits for 2023, despite achieving a record high in assets under management (AUM). AUM reached $167.5 billion, marking a 17% increase from the previous year’s $143.3 billion. However, the firm’s pre-tax profit fell sharply by more than 50%, from $779 million in 2022 to $340 million last year.

The decline in profits was largely due to a dramatic drop in performance fees, which plummeted by 77% to $180 million. Additionally, net revenue decreased by 29%, from $1.7 billion in 2022 to $1.2 billion in 2023.

Despite these challenges, Man Group achieved a solid $9.7 billion in performance gains over the year, helping to push AUM to its highest level. However, the firm faced its first quarter of net negative flows since Q3 2022, with $300 million in outflows during the final three months of the year. The outflows were mainly attributed to multi-manager and systematic long-only funds.

Robyn Grew, who became CEO in September 2023, acknowledged the challenging macroeconomic and geopolitical environment, stating that the firm had performed well under difficult conditions. She also pointed out that net client capital inflows amounted to $3 billion, surpassing industry expectations by 4.9%, although analysts had anticipated $4.1 billion in inflows for the year.