Man Group plc, the world’s largest hedge fund provider, announced today that its profit (before tax and exceptionals) rose 51% in the fiscal year ended 31 March, 2006 to $1.306 billion, a record for the company.
The increase was attributed to the strong performance of the firm’s four core investment managers, and to organic growth at its brokerage business.
Funds under management increased to $54 billion from $43 billion a year earlier, up 25%. This included a surge of $4 billion in April and May, following the end of the reporting period.
Private investor FUM reached $30.4 billion, up 16% from the previous year.
Fund sales in the year of $9.1 billion, including private investor sales of $5.7 billion
Profit before tax on total operations rose 17% to $1.236 million, while diluted earnings per share on total operations advanced 48% to 306 cents.
Other major points from the results include:
• Recurring net management fee income up 18% to $700 million
• Brokerage profits up 20% to $177 million (excluding Refco)
• Diluted underlying earnings per share† up 18% to 214 cents (excluding Refco, up 20% to 219 cents)
• Net performance fee income up from $119 million to $450 million
• Post-tax return on equity 33.5%, up from 29.8% last year
• Dividends relating to the year up 30% in US dollar terms to 85.8 cents
