" FTSE FOR FRIDAY & A BITCOIN SNARL (FTSE:UKX) Just for curiousity, we opened a demo trading account to try something with Bitcoin, essentially displaying similar fascination as a moth and a flame. The market is, in our opinion, utterly ..."
Glad you got out with a profit, I initially took my profit last year and thought when it hit £2 it was on its way up?
Now sitting with a loss that to me seems incredible as it was doing so well and I know older holders hold at well above the £2 mark. This market is ridiculous America goes up and we keep falling.
According to my different holdings, good revenue companies are being decimated and all the wish washy get no money firms are blazing a trail to profit.
One last point is that the margin thinning on management fees has been well flagged for a couple of years now due to how the company is growing FUM so I doubt that has spooked in relation to expectations.
The results themselves are pretty solid, best Man has posted for a while. Good FUM growth and decent performance across most of the funds reflected in a meaningful contribution of performance fees to earnings.
But all that is backward looking to year end 2017. The sell off is related to the recent vol / vix issues in the markets that have caused the systematic funds and AHL group to post ~10% drops for Feb. Systematica, Winton, CQS all are down by a similar range for reference. Has been worst month on record for CTA index, not sure why the market is starting to price that in now, it is mentioned in the results blurb but been known for a couple of weeks.
The market seems to price EMG at ~150p when funds are out of the money and ~200p when at the money, so a drift back down wouldn't surprise. But the company is making decent progress, but as ever is highly geared to its own fund performance.
-- Funds under Management (FUM)(1) up 35% to $109.1 billion (31 December 2016: $80.9 billion)
o Net inflows of $12.8 billion (2016: net inflows $1.9 billion)
o Positive investment movement of $10.7 billion (2016: $3.2 billion)
o Aalto acquisition added $1.8 billion
o FX translation and other movements of $2.9 billion (2016: -$2.9 billion)
-- 11 basis point reduction in the Group net management fee margin(1) compared to 2016 driven by strong FUM growth in lower margin strategies. Group run rate net management fee margin(1) of 72 basis points at 31 December 2017
-- Net revenues increase by 33% reflecting good absolute performance fee generation and 7% growth in net management fee revenue
-- Adjusted profit before tax (PBT)(1) of $384 million in 2017 (2016: $205 million),
o Adjusted net management fee PBT of $203 million (2016: $178 million)
o Adjusted net performance fee PBT of $181 million (2016: $27 million)
-- Statutory PBT for the year ended 31 December 2017 of $272 million (2016: statutory loss before tax of $272 million)
-- Recommended final dividend of 5.8 cents per share bringing total dividend for the year to 10.8 cents per share (2016: 9.0 cents). The final dividend is equal to 4.18 pence per share (2016: 3.62 pence), and the total dividend for the year is equal to 7.97 pence per share (2016: 7.05 pence)
-- Proforma surplus regulatory capital of $460 million adjusted for second half earnings, our final dividend and receipt of cash for year end performance fees and redemption of our largest seeding investment. We estimate the adoption of the new leases accounting standard which will apply from 1 January 2019 will reduce that surplus capital by up to GBP90m ($120 million)
Luke Ellis, Chief Executive Officer of Man, said:
"2017 was a strong year for our business. The record net inflows of $12.8 billion reflected not only the outperformance we delivered for clients, but also our focus on deep client relationships. Our FUM grew by 35% and this, combined with the strong investment performance and our focus on running the business in an efficient and effective manner, led to excellent profit growth, with an 87% increase in adjusted profits.
In common with others, the recent moves in markets have impacted our investment performance in some areas, particularly for our momentum strategies. However, looking forward Man is well positioned, with strong fundamentals, investment in innovative strategies and a continuing pipeline of interest from clients. As ever, we remain focused on delivering long term investment performance and the highest quality service to our clients."
(1) For definitions and explanations of our alternative performance measures, please refer to page 52.
Summary financials Page Year ended Year ended
ref. 31 Dec 2017 31 Dec
Funds under management (end 5-7 109.1bn 80.9bn
of period) (1)
Net management fee revenue(2) 17,18,31 736m 691m
Performance fees(3) 18,31 333m 112m
Net revenues 1,069m 803m
Compensation 19,32 (474m) (388m)
Other costs (including asset
servicing) 19,33 (202m) (199m)
Net finance expense 20,33 (9m) (11m)
Adjusted profit before tax(1) 20,53 384m 205m
Adjusting items(4) 20,53 (112m) (477m)
EMG Man Group, share buy backs will help the SP appreciate EPS forecast in 2018 to rise 21.2% giving a forward P/E of just 12.5. Was P/E of 39 2016. Cheap very cheap with powerful growth going forward.
They're up 60% on the year, have been paying a nice dividend for years. They're getting close to £2 which is where it all went wrong last time and NOW it's 'time to buy again'?!?
Some of us have been holding shares sub-£1. I wouldn't personally say now was the time to get involved taking all things into account. If £2 happens I may very well be tempted to cut my holding. Only thing keeping me is the nice 8%/yield and it is generally one of the less scary shares to hold. (that is until market volatility hits and the indices drop, at which point this will track it back down and then some.)
"It wasn't quite as spectacular a rise as this time a year ago, but LSE:EMG:Man Group continued its winning streak Friday after another quarter of forecast-busting results and a further share buyback.Man shares rallied almost 5% to a further ..."
EMG Man group on.... RNS: <a href='https://www.investegate.co.uk/man-group-plc--emg-/rns/trading-statement/201710130700024982T/' target='window'>https://www.investegate.co.uk/man-group-plc--emg-/rns/trading-statement/201710130700024982T/</a> FUM nicely UP. Chart looking strong. Stock used to combat Brexit worries.
Man Group has reversed its position on charging clients for external analyst research and will now absorb the costs itself, the worlds largest publicly-traded hedge fund said as it reported a rise in assets in the third quarter.The FTSE 250 listed group managed $103.5bn at the end of September, up from $95.9bn at the end of June. Analysts had expected assets to top the three figure mark by the end of the year.Man Group also said in its trading statement that it intended to absorb the cost of paying for external research itself when sweeping new financial reforms, known as Mifid II, come into force in January a departure from its previous stance, reported by the FT, that it would pass these costs onto clients. It said the decision would cost it between $10m and $15m.The majority of large asset managers who have confirmed decisions have said they will absorb the cost of research themselves.Driving the rise in assets were net inflows of $2.8bn in the quarter, positive investment performance which accounted for $3.3bn and foreign exchange movements which benefitted Man Group by $900m.Luke Ellis, chief executive of Man Group, said:The third quarter of 2017 was a period of strong alpha generation for Man, with positive performance across the firm. As expected the pace of inflows and the level of margin compression both moderated during the quarter.Inflows remained strong overall and were focussed on some of our newer strategies, in particular alternative risk premia. We devote significant efforts to developing innovative solutions, and we are pleased to see our clients enthusiasm for these newer offerings.Looking forward we continue to see a decent level of interest from clients, with our normal caveat that flows are likely to be uneven quarter to quarter.
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