Man shares rise 6% as results beat expectations

Man Group's shares rose nearly 3% this morning after it reported pre-tax profit of $154m for the six months to 30 September 2011, ahead of the amount it forecast earlier this summer.

In September, Man had forecast pre-tax profit of $145m for the period but said in its results additional performance fees helped profits beat that level.

Man said it saw outflows of $2.7bn during the quarter, with a significant acceleration in redemptions at the end of the period, particularly in GLG alternatives and long-only mandates.

The company said funds under management stood at $64.5bn at the end of September, falling to $63.5bn at the end of October but with redemptions lower than in September.

"We are planning on the basis that investor appetite will remain subdued whilst markets remain volatile and uncertain, but are well positioned to capture demand when sentiment improves and investors return to markets," said Man chief executive Peter Clarke (pictured).

Man also committed to a share buyback programme worth up to $150m before the year end.

Man shares were up 2.8% at 145.5p in mid-morning trading, but it remains the second largest faller in the FTSE 100 this year behind Lloyds Banking Group, having shed 52% of its value prior to today's results. The stock fell 25% on 28 September after the company said it expected funds under management to have fallen from $71bn to $65bn during Q3.

Sentiment was further knocked in October when Man revealed AHL, its flagship computer-driven portfolio, fell by 5.5% in the first week of the month as markets rallied, dashing hopes it would reach its high watermark and hence start accruing performance fees.