London-listed hedge fund Man Group suffered a double-digit drop in revenue and profit despite a jump in assets under management in its full-year results.
Man Group’s profit after tax came in at $234m for the year ended 31 December 2023, down 62% compared with $608m in 2022, the company told the stock market on 29 February.
Man Group CEO Robyn Grew, who took over from Luke Ellis in September 2023 and became the first female chief executive in the firm’s history, called 2023 a year that “defied market expectations”.
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Here are the three things you need to know about Man Group’s annual results.
Revenue plunge
Man Group’s core net revenue dropped 29% last year as the figure reached $1.19bn, compared with $1.69bn in 2022. The revenue plunge was mainly driven by a 77% drop in core performance fees which came in at $180m, compared with $779m in 2022.
Revenue from core net management fees increased by 4% year-on-year.
Investment performance by strategy
Man Group’s AHL Diversified and GLG Global Emerging Market Debt investment strategies took a major hit last year as they generated negative returns of 3.8% and 7.7% respectively.
For the year ended 31 December 2023, one of the best-performing investment strategies for the London-based hedge fund was Man AHL TargetRisk which generated annual returns of 14.1%.
Growth in assets under management
Despite a challenging year in terms of revenue and profit, Man Group witnessed a 17% surge in assets under management as the figure reached a record high of $167.5bn. In September last year, Man Group announced the acquisition of Varagon Capital Partners, a US-based middle market private credit manager with $11.8bn of assets under management.
“We have built trusted partnerships with sophisticated allocators globally, enabling us to gain a deep understanding of their needs and challenges,” Grew said in a statement.
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