Man Group Boosts Assets as Rising Markets Lift Algo-Driven Funds

(Bloomberg) -- Man Group Plc’s assets increased in the first quarter as rising markets fueled a comeback for computer-driven funds.

Funds under management rose by 4 percent in the first three months to $112.3 billion as the firm’s investments gained $4.5 billion, according to a company statement. Man Group’s four main quant funds, including AHL Dimension and AHL Evolution, all made money in the period as stocks and government bonds rallied.

The company’s shares rose as much as 3 percent in London on Thursday, and were up 1 percent at 8:32 a.m.

Man Group’s investment performance helped offset net client withdrawals of $700 million in the quarter, mostly from long-only funds, exceeding an estimate of $300 million from analysts at JPMorgan Chase & Co. Last year, the company had $10.8 billion in inflows.

“While we expect clients to continue adjusting their portfolio allocations during the second quarter, we see ongoing engagement with clients on new mandates and, in particular, continuing strong demand for our total return strategies,” Chief Executive Officer Luke Ellis said in the statement.

To contact the reporter on this story: Nishant Kumar in London at nkumar173@bloomberg.net

To contact the editors responsible for this story: Shelley Robinson at ssmith118@bloomberg.net, Patrick Henry, Marion Dakers

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