AHL troubles hit Man in first quarter

Man Group has reported net outflows of $1bn in the first quarter, down from $2.5bn in the fourth quarter of 2011, as its flagship AHL product continues to impact on funds under management.

The hedge fund group said funds under management were $59bn as at the end of March 2012, up from the $58.4bn reported at the end of 2011. That represented positive market movements of $2bn on the quarter but $1bn in net outflows and $400m in negative FX and other movements, "driven by guaranteed product degears after negative AHL performance in the rebalancing period," Man said. Further degearing will see guaranteed products shed a further $400m and $600m on 1 April and 1 May respectively, Man said. Three quarters of GLG funds under management were at or within 5% of high watermark...