Man Group Starts Jersey Unit to Join Biggest Money Managers

(Bloomberg) -- Man Group Plc, whose assets have soared to a record after posting better-than-expected inflows, said it plans to incorporate a new holding company in Jersey in a move that aligns its corporate structure with some of the world’s largest money managers.

Key Insights

• Man Group joins peers such as Brevan Howard Asset Management, Janus Henderson Group Plc and Fidelity International in having a Jersey presence.
• The decision to set up a new company in Jersey reflects a growth in Man Group’s U.S. business in the past five years. Firm, which announced the move in a trading update Friday, said that it will retain its London listing and remain a U.K. tax resident.
• Man Group is selling its 18.5 percent stake in Nephila unit to Markel Corp., generating proceeds of about $130 million.
• Net inflows of $400 million into Man Group was mostly in lower-margin long only funds, exceeding expectations of analysts at firms such as Credit Suisse Group AG and Numis Securities Ltd. The inflows led to record assets under management at the firm.

Market Reaction

• Man Group shares rose as much as 5.9 percent in London, the biggest increase in more than two months. They shares have slumped about 27 percent this year, trailing the broader FTSE All-Share Index.

Digging Deeper

• Assets under management rose to $114.1 billion
• The world’s largest publicly traded hedge fund firm, which is well-known for its computer-driven strategies, has seen mixed performance in some of its managed futures funds as sudden reversals in markets this year have troubled trend followers.
• Chief Executive Officer Luke Ellis said the firm is ‘is well positioned, with strong fundamentals.”

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

To contact the editors responsible for this story: Sree Vidya Bhaktavatsalam at sbhaktavatsa@bloomberg.net, Andrew Blackman

©2018 Bloomberg L.P.