REG - Man Group plc - Final Results
27/02/2025 07:00
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RNS Number : 6062Y Man Group plc 27 February 2025
Press Release
27 February 2025
Results for the year ended 31 December 2024
Key points
Increasingly diversified range of alternative and long-only investment
strategies drives $10.9 billion of positive investment performance for clients
o AUM(1) of $168.6 billion as at 31 December 2024 (31 December 2023: $167.5
billion)
o Relative investment performance( KPI ) of +1.0%, with 5.9% outperformance
in the long-only category
o Net outflows of $3.3 billion, driven by the $7.0 billion single client
redemption in Q3
Core management fee EPS (diluted) growth( KPI ) of 17% highlights the
strengths of our business model
o Core net management fee revenue increased by 14% to $1,097 million (2023:
$963 million)
o Core performance fees of $310 million from a broad range of strategies and
solutions (2023: $180 million)
o Statutory profit of $298 million (2023: $234 million) and core profit
before tax of $473 million (2023: $340 million)
o Statutory EPS (diluted) of 25.1¢ (2023: 19.4¢) and core EPS
(diluted)( KPI ) of 32.1¢ (2023: 22.4¢)
Consistent shareholder returns in line with our disciplined capital policy;
strong balance sheet to support our long-term growth ambitions
o Recommended final dividend of 11.6¢, resulting in a total dividend for
2024 of 17.2¢ (2023: 16.3¢)
o Net tangible assets of $867 million as at 31 December 2024 (31 December
2023: $782 million)
o Intention to repurchase up to $100 million of shares
Good progress against our multi-year strategic priorities - to diversify our
investment capabilities, to extend our reach with clients around the globe and
to leverage our strengths in talent and technology - including:
o Continued growth of our credit platform: AUM of $35.0 billion (31 December
2023: $28.3 billion), with $5.9 billion of net inflows into discretionary
long-only credit and the successful launch of a new US direct lending offering
o In quant equities, 7.6% relative investment performance from the
systematic long-only category; continued investments in data and execution
technology to support our ambitions in mid-frequency equities
o Resources reallocated across the firm to ensure increased focus on our
growth initiatives while reinforcing the core strengths of our business
Robyn Grew, Chief Executive Officer of Man Group, said:
"Following my first full year as CEO, I'm pleased to report a strong set of
results for 2024. In another volatile year for markets, we delivered good
performance for our clients, with all our product categories contributing
positively. The strides we have made in diversifying our business underpinned
$310 million of core performance fees despite a muted contribution from
trend-following strategies, and 17% growth in core management fee EPS. With a
lot of hard work and focus during the year, we also made good progress on
several of our multi-year strategic priorities that will continue to
strengthen our firm for the future.
"We see significant opportunities on the horizon in 2025. Stretched equity
valuations and the risk of persistent inflation in the US suggest that
allocators will increasingly seek uncorrelated investment strategies, while
higher-for-longer interest rates are likely to support continued growth in
credit markets. As the challenges facing investors become more complex, the
demand for customised, scalable and differentiated solutions will only
increase. There's a huge amount to play for as a diversified alternative
investment manager with exceptional talent and cutting-edge technology; we are
in prime position to partner with our clients and help them successfully
navigate what lies ahead."
This document should be read in conjunction with the content and definitions
included in the 2024 Annual Report.
'Core' measures are alternative performance measures. For a detailed
description of our alternative performance measures, including non-core items,
please refer to pages 61 to 67. For details of key performance indicators
( KPI ), refer to page 11.
1. Assets under management.
Summary financials
$ millions, unless otherwise stated Year ended Year ended Change
31 Dec 2024 31 Dec 2023
AUM, end of period $168.6bn $167.5bn 1%
Core net management fee revenue 1,097 963 14%
Core performance fees 310 180 72%
Core net revenue(1) 1,459 1,196 22%
Core management fee profit before tax 323 280 15%
Core performance fee profit before tax 150 60 150%
Core profit before tax 473 340 39%
Statutory profit 298 234 27%
¢
Core management fee EPS (diluted) 21.5 18.4 17%
Core EPS (diluted) 32.1 22.4 43%
Statutory EPS (diluted) 25.1 19.4 29%
Dividend per share 17.2 16.3 6%
Conference call and presentation
There will be a presentation by the management team at 08.30am (London) on 27
February 2025 at
Riverbank House, 2 Swan Lane, London, EC4R 3AD, along with a live webcast,
which will also be available on demand later in the day. A copy of the
presentation will be available on the investor relations section of
www.man.com (http://www.man.com) from 08.25am. We recommend connecting to the
meeting 5-10 minutes prior to the start time. To ask a question during the
Q&A session you will need to access the meeting via the link below.
The conference call can be accessed at:
https://mangroup.webex.com/mangroup/j.php?MTID=m56de74be068c721221c27f94d7f832f0
(https://mangroup.webex.com/mangroup/j.php?MTID=m56de74be068c721221c27f94d7f832f0)
Webinar number (and access code): 2372 381 2323
Webinar password: ManFY2024Results (62639203 from a phone or video system)
Join by phone:
United Kingdom: +44 20 3478 5289
USA/Canada: +1 631 267 4890
Enquiries
Karan Shirgaokar
Head of Investor Relations
+44 20 7144 1000
investor.relations@man.com (mailto:investor.relations@man.com)
Georgiana Brunner
Head of Communications
+44 20 7144 1000
media@man.com (mailto:media@man.com)
Neil Doyle
FTI Consulting
+44 77 7197 8220
man@fticonsulting.com (mailto:man@fticonsulting.com)
1. Includes core gains on investments and core rental income.
Capital returns
Man Group's capital allocation policy is disciplined and intended to deliver
attractive shareholder returns while supporting the future growth of the
business. Our aim is to increase the annual dividend per share progressively
over time, reflecting the firm's underlying earnings growth and free cash flow
generation while maintaining a prudent balance sheet. We then look to invest
in organic and inorganic initiatives that align with our strategic priorities,
to drive long-term value creation for our shareholders. Finally, any remaining
available capital is returned over time, through share repurchases when
advantageous.
In line with this policy, the Board has confirmed it will recommend a final
dividend of 11.6¢ per share for the financial year ended 31 December 2024,
resulting in a total dividend of 17.2¢ per share. We will fix and announce
the US dollar to sterling dividend currency conversion rate on 9 May 2025, in
advance of payment. This is in addition to the $50 million share repurchase
programme announced and completed in 2024, and the intention to repurchase a
further $100 million of shares.
Dates for the 2024 final dividend
Ex-dividend date 10 April 2025
Record date 11 April 2025
Final election date for Dividend Reinvestment Plan (DRIP)(1) 29 April 2025
Sterling conversion date 09 May 2025
Payment date 21 May 2025
Forward-looking statements and other important information
This document contains forward-looking statements with respect to the
financial condition, results, and business of Man Group plc. By their nature,
forward-looking statements involve risk and uncertainty and there may be
subsequent variations to estimates. Man Group plc's actual future results may
differ materially from the results expressed or implied in these
forward-looking statements.
The content of the websites referred to in this announcement is not
incorporated into and does not form part of this announcement. Nothing in this
announcement should be construed as or is intended to be a solicitation for or
an offer to provide investment advisory services or to invest in any
investment products mentioned herein.
This announcement contains inside information.
The person responsible at the Company for the release of this announcement for
the purposes of UK MAR is Antoine Forterre, Chief Financial Officer.
About Man Group
Man Group is a global alternative investment management firm focused on
pursuing outperformance for sophisticated clients via our Systematic,
Discretionary and Solutions offerings. Powered by talent and advanced
technology, our single and multi-manager investment strategies are underpinned
by deep research and span public and private markets, across all major asset
classes, with a significant focus on alternatives. Man Group takes a
partnership approach to working with clients, establishing deep connections
and creating tailored solutions to meet their investment goals and those of
the millions of retirees and savers they represent.
Headquartered in London, we manage $168.6(2) billion and operate across
multiple offices globally. Man Group plc is listed on the London Stock
Exchange under the ticker EMG.LN and is a constituent of the FTSE 250 Index.
Further information can be found at www.man.com (http://www.man.com) .
1. A DRIP is provided by Equiniti Financial Services Limited. The DRIP
enables the Company's shareholders to elect to have their cash dividend
payments used to purchase the Company's shares. More information can be found
at www.shareview.co.uk/info/drip (http://www.shareview.co.uk/info/drip) .
2. At 31 December 2024. All investment management and advisory
services are offered through Man Group affiliated regulated investment
managers.
Assets under management(1)
AUM movements for the year ended 31 December 2024
$bn AUM at Net flows Investment performance Other(2) AUM at
31 Dec 2023
31 Dec 2024
Absolute return 47.7 (0.7) 0.3 (2.0) 45.3
Total return 42.5 0.6 0.5 (2.1) 41.5
Multi-manager solutions 19.4 (3.9) 0.2 (1.3) 14.4
Alternative 109.6 (4.0) 1.0 (5.4) 101.2
Systematic long-only 36.5 (4.9) 7.3 (0.3) 38.6
Discretionary long-only 21.4 5.6 2.6 (0.8) 28.8
Long-only 57.9 0.7 9.9 (1.1) 67.4
Total 167.5 (3.3) 10.9 (6.5) 168.6
AUM movements for the three months ended 31 December 2024
$bn AUM at Net flows Investment performance Other(2) AUM at
30 Sep 2024
31 Dec 2024
Absolute return 47.5 0.2 (0.3) (2.1) 45.3
Total return 45.0 (1.0) (0.8) (1.7) 41.5
Multi-manager solutions 16.0 (1.2) 0.0 (0.4) 14.4
Alternative 108.5 (2.0) (1.1) (4.2) 101.2
Systematic long-only 37.1 2.3 0.2 (1.0) 38.6
Discretionary long-only 29.3 1.0 0.3 (1.8) 28.8
Long-only 66.4 3.3 0.5 (2.8) 67.4
Total 174.9 1.3 (0.6) (7.0) 168.6
1. At 31 December 2024, total AUM excludes non-fee-paying committed
capital of $4.9bn (31 December 2023: $3.1bn).
2. Includes the impact of foreign currency exchange rate fluctuations,
performance-linked leverage movements, distributions and realisations
(proceeds from maturities or disposals) across private market strategies, and
capital returned to investors from CLO strategies.
AUM by product category
$bn 31 Dec 2023 31 Mar 2024 30 Jun 2024 30 Sep 2024 31 Dec 2024
Absolute return 47.7 50.3 49.2 47.5 45.3
Institutional solutions(1) 16.2 17.4 17.1 16.1 15.7
Traditional trend-following 9.5 9.6 9.5 9.2 8.4
Multi-strategy quant 6.0 6.5 6.3 5.9 5.8
Discretionary equity 4.4 4.6 4.5 4.6 4.4
Alternative trend-following 5.4 5.3 4.8 4.6 4.1
Other(2) 6.2 6.9 7.0 7.1 6.9
Total return 42.5 43.3 45.0 45.0 41.5
Multi-asset risk parity 14.2 15.2 16.2 16.7 15.0
Alternative risk premia 9.9 10.3 11.4 11.4 10.9
US direct lending 10.8 10.7 10.3 10.2 10.3
CLOs 3.6 3.4 3.4 3.0 2.5
Real estate 2.6 2.5 2.4 2.3 1.4
Other(3) 1.4 1.2 1.3 1.4 1.4
Multi-manager solutions 19.4 17.7 16.1 16.0 14.4
Infrastructure and direct access 12.8 12.0 11.5 10.8 9.7
Segregated 6.1 5.3 4.3 4.7 4.2
Diversified and thematic FoHF 0.5 0.4 0.3 0.5 0.5
Systematic long-only 36.5 39.7 41.2 37.1 38.6
Global equity 20.7 22.5 24.0 18.4 19.6
Emerging markets equity 8.0 8.4 8.9 9.5 8.4
International equity 7.0 7.8 7.2 7.8 8.4
Fixed income 0.8 1.0 1.1 1.4 2.2
Discretionary long-only 21.4 24.7 26.7 29.3 28.8
Credit and convertibles 8.1 9.6 10.7 13.5 14.7
Japan equity 5.3 6.3 6.3 6.4 5.7
UK equity 4.1 4.4 5.0 4.9 4.5
Europe ex-UK equity 1.3 1.9 1.8 1.7 1.3
Emerging markets fixed income 1.0 0.9 0.9 1.0 0.9
Other(4) 1.6 1.6 2.0 1.8 1.7
Total 167.5 175.7 178.2 174.9 168.6
1. Includes AHL Institutional Solutions, which invests into a range of AHL
strategies including AHL Alpha, AHL Dimension and AHL Evolution, as well as
other absolute return strategies.
2. Includes AHL other, Numeric absolute return and Discretionary
credit absolute return strategies.
3. Includes Discretionary credit total return strategies.
4. Includes Discretionary equity and multi-asset long-only strategies.
Investment performance
Return (net of fees) Annualised return (net of fees)
3 months to 12 months to 3 years to 5 years to Inception to 31 Dec 2024
31 Dec 2024
31 Dec 2024
31 Dec 2024
31 Dec 2024
Absolute return
AHL Alpha 1 -0.2% 3.2% 5.0% 5.5% 9.9%
AHL Dimension 2 1.6% 3.1% 5.3% 3.0% 4.7%
AHL Evolution 3 -3.0% -6.1% 0.7% 4.4% 10.9%
AHL Diversified 4 -2.0% -0.6% 2.6% 4.4% 9.8%
Man Alpha Select Alternative 5 -0.1% 2.2% 5.7% 6.2% 4.8%
Man Event Driven Alternative 6 -1.6% 2.2% 3.4% 5.6% 5.7%
Man Strategies 1783 7 1.7% 14.5% 10.0% - 6.9%
Total return
Man TargetRisk 8 -2.8% 7.3% 0.7% 4.3% 7.6%
Man Alternative Risk Premia 9 -1.7% 8.4% 8.5% 5.2% 4.9%
Multi-manager solutions
FRM Diversified II 10 -0.6% 4.4% 3.7% 5.0% 4.1%
Systematic long-only
Numeric Global Core 11 0.3% 24.0% 9.1% 12.8% 11.4%
Relative return 0.5% 5.4% 2.8% 1.6% 1.0%
Numeric Emerging Markets Core 12 -4.5% 15.0% 1.0% 5.1% 5.6%
Relative return 3.5% 7.5% 3.0% 3.4% 2.6%
Numeric Europe Core 13 -2.4% 13.4% 6.0% 8.7% 8.9%
Relative return 0.3% 4.8% 1.6% 2.1% 2.3%
Discretionary long-only
Man High Yield Opportunities 14 0.2% 11.9% 3.5% 6.5% 7.6%
Relative return 0.1% 4.4% 2.7% 4.7% 4.6%
Man Global Investment Grade Opportunities 15 0.2% 13.4% 7.9% - 8.0%
Relative return 1.7% 9.5% 8.8% - 9.0%
Man Japan CoreAlpha Equity 16 9.1% 23.2% 24.1% 15.5% 6.7%
Relative return 3.6% 2.8% 9.4% 2.8% 2.0%
Man Undervalued Assets 17 0.1% 10.3% 9.6% 5.1% 7.4%
Relative return 0.5% 0.9% 3.8% 0.3% 1.7%
Man Continental European Growth 18 -6.4% -1.7% -1.4% 5.8% 8.8%
Relative return -2.6% -4.7% -4.9% -1.3% 2.8%
Indices
HFRX Global Hedge Fund Index 19 0.2% 5.3% 1.2% 2.8%
HFRI Fund of Funds Conservative Index 19 1.5% 6.6% 4.0% 5.2%
HFRI Equity Hedge (Total) Index 19 1.4% 11.9% 3.8% 8.1%
HFRX EH: Equity Market Neutral Index 19 1.3% 7.2% 3.8% 1.6%
Barclay BTOP 50 Index 20 1.2% 5.5% 6.0% 6.6%
Past performance is no indication of future results. Financial indices are
used for illustrative purposes only and are provided for the purpose of making
a comparison to general market data as a point of reference and should not be
construed as a true comparison to the strategy.
The information herein is being provided solely in connection with this press
release and is not intended to be, nor should it be construed or used as,
investment, tax or legal advice, any recommendation or opinion regarding the
appropriateness or suitability of any investment or strategy, or an offer to
sell, or a solicitation of an offer to buy, an interest in any security,
including an interest in any fund or pool described herein.
1. Represented by AHL Alpha plc from 17 October 1995 to 30 September
2012, and by AHL Strategies PCC Limited: Class Y AHL Alpha USD Shares from 1
October 2012 to 30 September 2013. The representative product was changed at
the end of September 2012 due to the provisioning of fund liquidation costs in
October 2012 for AHL Alpha plc, which resulted in a tracking error compared
with other Alpha Programme funds. Both funds are valued weekly; however, for
comparative purposes, statistics have been calculated using the best quality
price that is available at each calendar month end, using estimates where a
final price is unavailable. Where a price, either estimate or final is
unavailable on a calendar month end, the price on the closest date prior to
the calendar month end has been used. Both track records have been adjusted to
reflect the fee structure of AHL Alpha (Cayman) Limited - USD Shares. From 30
September 2013, the actual performance of AHL Alpha (Cayman) Limited - USD
Shares is displayed.
2. Represented by AHL Strategies PCC Limited: Class B AHL Dimension
USD Shares from 3 July 2006 to 31 May 2014, and by AHL Dimension (Cayman) Ltd
- F USD Shares Class from 1 June 2014 until 28 February 2015 when AHL
Dimension (Cayman) Ltd - A USD Shares Class is used. Representative fees of
1.5% Management Fee and 20% Performance Fee have been applied.
3. Represented by AHL Evolution Limited adjusted for the fee structure
(2% p.a. management fee and 20% performance fee) from September 2005 to 31
October 2006; and by AHL Strategies PCC: Class G AHL Evolution USD from 1
November 2006 to 30 November 2011; and by the performance track record of AHL
Investment Strategies SPC: Class E AHL Evolution USD Notes from 1 December
2011 to 30 November 2012. From 1 December 2012, the track record of AHL
(Cayman) SPC: Class A1 Evolution USD Shares has been shown. All returns shown
are net of fees.
4. Represented by Man AHL Diversified plc from 26 March 1996 to 29
October 2012, and by Man AHL Diversified (Guernsey) USD Shares - Class A from
30 October 2012 to date. The representative product was changed at the end of
October 2012 due to legal and/or regulatory restrictions on Man AHL
Diversified plc preventing the product from accessing the Programme's revised
target allocations. Both funds are valued weekly; however, for comparative
purposes, statistics have been calculated using the best quality price that is
available at each calendar month end, using estimates where a final price is
unavailable. Where a price, either estimate or final is unavailable on a
calendar month end, the price on the closest date prior to the calendar month
end has been used.
5. Represented by Man Alpha Select Alternative IL GBP; AUM included
within Discretionary equity under the absolute return product category.
6. Represented by Man Event Driven Alternative IN USD; AUM included
within Discretionary equity under the absolute return product category.
7. Represented by Man Strategies 1783 Class F1 USD from the 31st
January 2020 to the 31st December 2021 (0.50% p.a. management fee and 20%
performance fee); and by Man Strategies 1783 Class A USD from the 1st January
2022 to the 31st August 2024 (2% p.a. management fee and 20% performance fee).
From the 1st of September 2024 the performance of MAN STRATEGIES 1783 CL B2
USD is used, this has a 1.0% management fee and a performance fee of 15%, plus
additional talent passthrough costs included within the underlying portfolio;
AUM included within the corresponding underlying product category.
8. Represented by Man TargetRisk Class I USD.
9. Represented by Man Alternative Risk Premia SP - Class A USD.
10. Represented by FRM Diversified II Fund SPC - Class A USD ('the
fund') until April 2018 then Class A JPY hedged to USD thereafter. However,
prior to Jan 2004, FRM has created the FRM Diversified II pro forma using the
following methodology: i) for the period Jan 1998 to Dec 2003, by using the
returns of Absolute Alpha Fund PCC Limited - Diversified Series Share Cell
('AA Diversified - USD') adjusted for fees and/or currency, where applicable.
For the period Jan 2004 to Feb 2004, the returns of the fund's master
portfolio have been used, adjusted for fees and/or currency, where applicable.
Post Feb 2004, the fund's actual performance has been used, which may differ
from the calculated performance of the track record. There have been occasions
where the 12-months' performance to date of FRM Diversified II has differed
materially from that of AA Diversified. Strategy and holdings data relates to
the composition of the master portfolio; AUM included within Diversified and
thematic FoHF under the multi-manager solutions product category.
11. Performance relative to the MSCI World. This reference index is
intended to best represent the strategy's universe. Investors may choose to
compare returns for their accounts to different reference indices, resulting
in differences in relative return information. Comparison to an index is for
informational purposes only, as the holdings of an account managed by Numeric
will differ from the securities which comprise the index and may have greater
volatility than the holdings of an index.
12. Performance relative to MSCI Emerging Markets. This reference index
is intended to best represent the strategy's universe. Investors may choose to
compare returns for their accounts to different reference indices, resulting
in differences in relative return information. Comparison to an index is for
informational purposes only, as the holdings of an account managed by Numeric
will differ from the securities which comprise the index and may have greater
volatility than the holdings of an index.
13. Performance relative to the MSCI Europe (EUR). This reference index
is intended to best represent the strategy's universe. Investors may choose to
compare returns for their accounts to different reference indices, resulting
in differences in relative return information. Comparison to an index is for
informational purposes only, as the holdings of an account managed by Numeric
will differ from the securities which comprise the index and may have greater
volatility than the holdings of an index; AUM included within International
equity under the systematic long-only product category.
14. Represented by Man High Yield Opportunities I EUR. Relative return
is shown vs ICE BofA Global High Yield Index (EUR, TR) Hedged benchmark; AUM
included within Credit and convertibles under the discretionary long-only
product category.
15. Represented by Man Global Investment Grade Opportunities I USD.
Relative return is shown vs ICE BofA Global Large Cap Corporate Index (USD,
TR) Hedged; AUM included within Credit and convertibles under the
discretionary long-only product category.
16. Represented by Man Japan CoreAlpha Fund - Class C converted to JPY
until 28 January 2010. From 1 February 2010 Man Japan CoreAlpha Equity Fund -
Class I JPY is displayed. Relative return shown vs TOPIX (JPY, GDTR); AUM
included within Japan equity under the discretionary long-only product
category.
17. Represented by Man Undervalued Assets Fund - C Accumulation Shares.
Relative return shown vs FTSE All Share (GBP, NDTR); AUM included within UK
equity under the discretionary long-only product category.
18. Represented by Man Continental European Growth Fund Class C
Accumulation Shares. Relative return shown vs FTSE World Europe Ex UK (GBP,
GDTR); AUM included within Europe ex-UK equity under the discretionary
long-only product category.
19. HFRI and HFRX index performance over the past 4 months is subject to
change.
20. The historical Barclay BTOP 50 Index data is subject to change.
Chief Executive Officer's review
Overview of the year
It has now been five years since Covid-19 first spread around the world and it
seems every year since has been one of surprises and/or heightened volatility.
2024 has been no exception to this, but for the purpose of this report I have
characterised it as a year of divergence, where US exceptionalism dominated
the global narrative.
Equities continued to rally, driven by optimism around a potential soft
landing for the US economy, the sustained momentum of the AI boom, and Trump's
pro-business agenda. As a result, the S&P 500 gained 23%, reaching 57 new
all-time highs during the year. Fixed income and currencies, however,
experienced a more volatile and at times turbulent year; although the Fed cut
interest rates three times, persistent inflation and oscillating expectations
of monetary policy easing kept markets under pressure, with the 10-year US
Treasury yield ending the year higher at 4.6%. The US dollar strengthened by
7% against an index of major currencies. Meanwhile, commodity markets were
shaped by geopolitical disruptions and evolving supply-demand dynamics; energy
markets in particular saw considerable fluctuations, driven by periods of
escalation and hopes of de-escalation in the Middle East and Europe, unstable
supply chains, and the health of the Chinese economy. Elections across more
than 60 countries globally and a challenging environment for incumbents added
to market uncertainty throughout.
Against this backdrop, and following my first full year as CEO, I am proud to
report solid financial results for 2024. These results highlight the strides
we have made in diversifying our business, our commitment to collaborating
with sophisticated investors to address their most complex challenges, and the
outstanding quality of our talent, technology and institutional resources.
We generated investment performance of $10.9 billion during the year, with all
our product categories contributing positively. Our absolute return strategies
gained 1.1%, with particularly notable returns from our multi-strategy
offering Man 1783 (+14.5%). The strategy benefits from unconstrained access to
c.75 discretionary and systematic capabilities across the firm, and its
performance during the year is a great reflection of the breadth of
high-quality investment content that we have to offer.
After an excellent start to the year, gains in our trend-following strategies
were impacted by range-bound fixed income markets. This proved challenging to
navigate, as shifting expectations for the future path of interest rates
resulted in a lack of sustained trends and increased the frequency of
reversals. Nonetheless, AHL Alpha (+3.2%) finished the year in positive
territory. It was a more difficult year for alternative trend-following in
general and the AHL Evolution strategy, which returned -6.1%, was no exception
to this. Trends in alternative markets were weaker and shorter in 2024, which
is reflected in the frequency with which AHL Evolution's exposures reversed
over the course of the year. Commodity and fixed income markets generated the
bulk of the losses, offsetting gains made in equities and credit. Meanwhile,
our total return strategies gained 5.1% overall, as Man TargetRisk (+7.3%)
once again demonstrated its ability to navigate macroeconomic shifts and adapt
swiftly to volatile market conditions. Man Alternative Risk Premia (+8.4%)
also delivered strong returns during the year, highlighting our judicious
approach to portfolio construction and risk management. Positive momentum in
equity markets, together with strong security selection, also resulted in
gains of 16.8% across our systematic long-only strategies and 12.5% across our
discretionary long-only strategies.
On an asset-weighted basis, relative investment performance across the firm
was positive in 2024. This outperformance was driven primarily by our
long-only strategies (+5.9%), with particularly impressive results from the
Man Numeric range. Man Japan CoreAlpha also continued its strong run of
performance; over the past three years, the strategy has delivered returns
9.4% above the TOPIX, net of fees, on an annualised basis. These outcomes
really highlight the value of active investment management in the long-only
equities space. Our credit strategies also performed particularly strongly,
with Man High Yield Opportunities and Man Global Investment Grade
Opportunities strategies returning 4.4% and 9.5% above their respective
benchmarks during 2024. The breadth of long-only strategies generating
outperformance not only highlights the expertise and skill of our investment
teams, but also emphasises the value of our increasingly diversified range of
investment strategies and solutions, as well as our commitment to continuously
innovate and evolve to meet the needs of our clients. Overall underperformance
within alternatives was largely attributable to AHL Evolution, as its indices
are predominantly composed of traditional trend-followers.
On the distribution side, although 2024 remained a challenging period for
fundraising in the asset management sector, we continued to make progress
building deep and long-term relationships with asset allocators and
third-party distributors around the globe. This has helped ensure that client
activity remained strong throughout the year, with total gross inflows of
$43.9 billion (2023: $30.2 billion); our second best year on record. I am
pleased to report that we experienced particularly strong demand for our
discretionary long-only credit strategies, where total AUM increased by $6.6
billion, or 81%, over the period, in line with one of our strategic
priorities. It was also pleasing to see our clients commit over $500 million
to Man Varagon's recently launched evergreen private credit strategy. This
serves as a strong example of our ability to add new capabilities and deepen
relationships by staying relevant to our clients.
We did, however, see an increase in redemptions during the year, as
institutional clients faced the combined challenges of macroeconomic and
geopolitical pressures on their portfolios, alongside lower-than-expected
realisations from private equity allocations. Most notably, our net flows were
impacted by a $7 billion redemption from a single client in systematic
long-only, following the strategic decision to switch their entire equities
allocation to a passively managed index-based portfolio, and $3.9 billion of
outflows from low margin managed account mandates in the multi-manager
solutions category. As a result, net flows overall were $(3.3) billion for the
period.
Positive investment performance was offset by net outflows and negative other
movements of $6.5 billion; these relate primarily to $3.8 billion of adverse
FX impacts owing to US dollar strength and $2.1 billion of maturities
following the ongoing wind-down of our US single family rental real estate
business and capital returned from CLO strategies. Total AUM as at 31 December
2024 was $168.6 billion, which is broadly flat compared with 31 December 2023.
Core net management fees(1) were higher at $1,097 million (2023: $963
million), while core performance fees also increased to $310 million (2023:
$180 million) despite a below average year for performance in our
trend-following strategies. This reflects the underlying performance fee
earning potential of the diversified business we have built over the past few
years. Continued cost discipline resulted in growth in core profitability,
increasing core earnings per share (diluted) to 32.1 cents (2023: 22.4 cents)
and statutory earnings per share (diluted) to 25.1 cents (2023: 19.4 cents).
1. Man Group's alternative performance measures are outlined on pages
61 to 67.
Progress against our priorities
Strong client relationships
I continue to spend considerable time with clients around the world, and one
thing is clear: their challenges are becoming far more complex. In today's
environment, investors require tailored solutions that deliver diversified,
risk-adjusted returns, backed by long-term, strategic partners who are
innovative, adaptable, and forward thinking.
Our global sales team of over 290 people remained focused on listening to and
addressing our clients' needs. This commitment drove strong engagement
throughout the year and although net flows were negative in 2024, relative net
flows were +0.2%. We track this metric as it is a measure of our ability to
attract and retain capital in comparison with our industry peers, and I am
delighted that we continued to grow our market share for the fifth consecutive
year. Our clients continue to have confidence in the quality of the strategies
and solutions that we offer and that is of tremendous importance to us. The
trend of clients investing across the firm also continued during the period;
at the end of December, 48% of our AUM was from clients invested in four
products or more, which has grown from 45% five years ago. This is testament
to our ability to build lasting partnerships with allocators that extend
beyond the traditional manager-client relationship, and provides the
foundation to do more with our clients in the years to come.
Our distribution network is one of our greatest competitive advantages and a
key driver of future growth. Expanding our presence in markets where we are
underweight relative to the size of the opportunity remains a multi-year
priority, and I am encouraged by the solid progress we have made over the past
year. Our presence in North America has grown from 28% of AUM as at the end of
2019 to 36% at the end of 2024. We manage money for over 35 public plans and
more than 130 other institutions and continue to expand into the wealth
channel via retail partnerships and intermediary relationships. As I have said
before, the growth of the wealth segment globally makes it a particularly
attractive channel for us: we are able to combine our structuring expertise
with our local relationships to develop high-quality, high-scale product
offerings. We made encouraging progress during the year, forming a Global
Wealth team and growing our AUM from wealth channels to $45.9 billion (2023:
$36.6 billion), launching dedicated products for specific markets. Although a
longer-term priority, we are already seeing good momentum with target clients
in the insurance sector, underpinned by the specific capabilities we have
invested in and the significant growth of our credit platform.
Innovative investment strategies
During 2024, we invested significant resources into diversifying our
investment capabilities, particularly in credit, quant equity and solutions.
Adding to the already significant breadth of what we offer strengthens our
business further and the resilience of our financial results in 2024
illustrates this point. It diversifies our revenue streams, provides new
opportunities for our people and creates multiple options for future growth.
We need to keep innovating to meet the unique and evolving requirements of our
clients.
I'm delighted with the progress we've made in building our credit platform. As
of December, we managed $35.0 billion in credit AUM across both alternative
and long-only strategies, spanning liquid and private markets, supported by
over 130 dedicated investment professionals. With the credit market becoming
increasingly attractive to the world's largest institutions, we remain focused
on expanding our existing capabilities while exploring opportunities to grow
further - whether organically or inorganically. On the topic of acquisitions,
the integration of Varagon is progressing smoothly, with fundraising efforts
and product development plans on schedule.
Our ability to deliver solutions at scale continues to be a key
differentiator. $104.4 billion of our AUM is customised in some way and our
Institutional solutions business - the most customised version of what we
offer - has grown to $15.7 billion as at 31 December 2024. We now run nearly
50 tailored solutions for strategically important allocators, as customisation
and transparency are of ever-increasing importance to them. We are also
prioritising adding new content to our solutions offering, and as part of this
initiative have introduced pass-through fees for clients of Man 1783. These
commercial terms bring us more in line with the market and give us the ability
to attract the very best investment talent to deliver for our clients.
In 2024, we continued to invest in mid-frequency equities, a significant
segment of the quant hedge fund market offering substantial alpha and
diversification potential. In that context, it was pleasing to see our AHL
StatArb strategy deliver 6.1% of gains for our clients. During the year, we
accelerated investments in data and execution, where efficiency is critical to
capturing more of the 'alpha' generated by our researchers. With our strong
heritage in quant and longstanding track record, we approach our growth
ambitions in this area from a position of strength and look forward to making
further progress in 2025.
Efficient and effective operations
I cannot emphasise the strengths of our platform enough; thanks to early,
continuous and significant investment in technology, we are able to deliver
for the world's largest institutional investors. Put simply, this enables us
to operate efficiently, flexibly, and at speed and scale, driving better
outcomes for our clients and creating value for our shareholders. Our business
model is designed to benefit from significant operating leverage, which
enhances the potential for greater profitability as we grow.
2024 continued to bring a great deal of enthusiasm about the potential for AI
to catalyse business productivity. You have heard us say before that this is
not a new phenomenon for our business: AI has been a core part of what we do
for over a decade, embedded across every aspect of our operations. From alpha
research and portfolio construction to trading and operational workflows,
we've leveraged AI to drive innovation and enhance decision-making. AI isn't
just about automation for us - it's about human augmentation, enabling our
people to achieve more. Our proprietary tools and tailored AI applications are
empowering teams across the firm, with over 50% of the firm actively using
ManGPT, while coding co-pilots and translation tools are delivering real
boosts to productivity. AI is transforming how we operate, and our dedicated
Enablement team is working closely with teams across the business to
continuously push boundaries.
We also continue to deploy capital, organically and inorganically, in line
with our strategic priorities, to drive future growth. Our seed capital
programme remains key in supporting new launches; we seeded 13 new strategies
across our business during the year, leaving our seed book at $532 million as
at 31 December 2024. This includes support for origination activities at Man
Varagon via a warehouse facility, which serves as an excellent example of how
we use our institutional resources to support new offerings. Throughout 2024,
we maintained a deliberately disciplined approach to evaluating acquisition
opportunities. While the M&A environment, particularly in private credit,
is evolving, the rigour and discipline we apply in assessing opportunities
remain unchanged.
People and culture
As an investment firm, our people and culture are fundamental to our ability
to deliver for clients. Talent remains vital to the continued success of our
business, and we are pleased to report a strong engagement score of 79% in our
2024 staff survey. To further strengthen our People function and ensure we
continue to attract and retain top talent, we announced the appointment of
Emma Holden as Chief People Officer in September last year. Emma joined us in
December, bringing a wealth of experience and an excellent track record in
building teams, managing complexity, and advising on strategy. The Executive
Committee and I are very much looking forward to working with Emma.
Since becoming CEO, alongside Anne Wade as Chair, much attention has been
given to us being the first women to lead Man Group since its founding in
1783. While this is undoubtedly a milestone, we see it as part of a broader
journey towards building an industry that truly reflects the populations we
serve. A diverse range of perspectives strengthens our business by fostering
innovation, enhancing problem-solving, and delivering better outcomes for our
clients. Our Drive initiatives, alongside learning and development
opportunities, are enabling us to attract the best talent from a range of
backgrounds and, just as importantly, ensure that this talent is supported to
thrive and progress within the organisation. Through frequent collaboration
with other firms and industry groups, we actively share best practices and
embrace new ideas. Lastly, as a firm with a quant heritage, we also recognise
the power of data in enriching how we care for our people and move our
business forward. We are committed to transparency around our targets and to
holding ourselves accountable.
Conclusion and outlook
As our teams have written, market predictions frequently miss the mark. What
is clear, however, is that the risk of persistent inflation and the
implications of new US leadership dynamics will drive market volatility,
creating an attractive environment for active investment management. As one of
the largest liquid alternative firms - with over 35 years of experience and a
distinctive edge that comes from combining exceptional talent with
cutting-edge technology - I am confident in our ability to capitalise on these
opportunities.
We have one single role, which is to deliver investment performance to help
our clients provide greater financial security to millions of people around
the world. As I have said before, my aim for Man Group is to be indispensable
to those sophisticated investors globally. In 2024, we continued to deliver
investment performance ahead of our peers, advanced our strategic objectives
that strengthen the firm, and generated solid profitability for our
shareholders. Combined with our long-term track record, this reinforces my
confidence that we are well positioned to deliver sustainable growth for our
shareholders in the years to come.
Robyn Grew
Chief Executive Officer
Key performance indicators
Financial KPIs
Our financial KPIs illustrate and measure the relationship between the
investment experience of our clients, our financial performance and the
creation of shareholder value over time.
Relative investment performance
Why it matters
The asset-weighted performance of Man Group's strategies in comparison with
peers gives an indication of the competitiveness of our investment performance
compared with similar strategies offered by other investment managers.
How we performed
Relative investment outperformance of 1.0% in 2024 was driven by our long-only
strategies. More information on our investment performance can be found on
page 8.
Relative net flows
Why it matters
Relative net flows are a measure of our ability to attract and retain investor
capital in comparison with our industry peers. Growth in the assets we manage
for clients drives our financial performance via our ability to earn
management and performance fees.
How we performed
Relative net flows in 2024 were 0.2%, reflecting our ability to attract and
retain capital in line with our industry peers. This metric was impacted
significantly by the $7 billion single client redemption in Q3.
Core management fee EPS (diluted) growth(1)
Why it matters
Core management fee EPS (diluted) growth in the year measures the overall
effectiveness of our business model and reflects the value creation for
shareholders from our earnings, excluding performance fees.
How we performed
Core management fee EPS (diluted) increased by 17% to 21.5¢. This was driven
by continued growth in core net management fee revenue, partially offset by an
increase in fixed costs to support growth initiatives.
Core EPS (diluted)(1)
Why it matters
Core EPS (diluted) is a measure of the earnings that drive our cash flows.
This metric includes core performance fee profits, which are generated through
outperformance for our clients and a significant driver of total value
creation for shareholders over time.
How we performed
Core EPS (diluted) increased by 43% to 32.1¢. This was driven by an increase
in performance fees despite a challenging market environment for
trend-following strategies.
1. Details of the calculation of our alternative performance measures
are provided on pages 61 to 67.
Non-financial KPIs
Our non-financial KPIs reflect our core values; they demonstrate our
commitment to our people, and to running our firm in a sustainable and
responsible way as we grow.
Carbon footprint
Why it matters
In order to monitor our carbon footprint, we measure total market-based
greenhouse gas emissions (tCO₂e) using the GHG Protocol guidance for the
Scope 1, Scope 2, Scope 3 travel and Scope 3 (upstream) leased asset
categories.
How we performed
Total carbon emissions increased by 3% in 2024, driven by further investment
in the growth of our global business and our data centres.
Employee engagement
Why it matters
Each year, we conduct a staff survey to help us monitor and understand
employee engagement and identify any areas for action. Alongside our
engagement survey, we continue to provide various other mechanisms for our
people to provide their feedback.
How we performed
Our 2024 staff survey recorded an engagement score of 79%, with a response
rate of 84%.
Women in senior management roles
Why it matters
As part of our efforts to encourage greater diversity across the investment
management industry, we measure the number of women in senior management
positions at the firm. This is defined as those who are, or report directly
to, members of our Executive Committee.
How we performed
The number of women in senior management roles has increased to 35%, exceeding
our target of 32.5%.
ESG-integrated AUM
Why it matters
We understand that investors have their own views on ESG matters and, in line
with our clients' needs, we seek to identify innovative responsible investment
solutions to support their objectives. We calculate ESG-integrated AUM in line
with the Global Sustainable Investment Alliance definition.
How we performed
ESG-integrated AUM has increased by 6% to $62.6 billion in 2024.
Chief Financial Officer's review
Overview
Man Group's statutory diluted EPS increased to 25.1¢ from 19.4¢ in 2023
driven by growth in management fees, including a full year of revenue
following the Varagon acquisition in 2023, and higher performance fee
revenues.
Higher core net management fee revenue of $1,097 million (2023: $963 million),
partially offset by an increase in fixed compensation and core other costs to
support growth, drove an increase in core diluted management fee EPS to 21.5¢
for the year from 18.4¢ in 2023. Together with an increase of $130 million in
core performance fees, the resultant increase in profits led to core diluted
EPS increasing to 32.1¢ from 22.4¢ in 2023.
We ended the year with AUM of $168.6 billion, up from $167.5 billion at the
end of 2023. Strong investment performance, particularly in our long-only
strategies, contributed an additional $10.9 billion to AUM. This was partially
offset by net outflows of $3.3 billion, primarily from systematic long-only
and multi-manager solutions, and negative other movements of $6.5 billion,
including $3.8 billion of negative FX impact owing to the strength of the US
dollar and $2.1 billion of maturities relating to the ongoing wind-down of our
US real estate business and capital returned from CLO strategies. Net outflows
of $4.9 billion in systematic long-only included a single client redemption of
$7.0 billion during Q3 at a net management fee margin of 21 basis points.
Management and other fees on a statutory basis increased by 14% to $1,126
million for the year as a result of higher average AUM and the full-year
contribution from Man Varagon. The average net management fee margin of 63
basis points for the year was in line with 2023.
The run rate net management fee margin at 31 December 2024 was 63 basis
points, compared with 65 basis points at the end of 2023. This decrease was
due to negative investment performance in higher margin absolute return
strategies and net inflows into lower margin discretionary long-only
strategies towards the end of the year. This drove a decrease in run rate core
net management fee revenue to $1,058 million at the end of the year from
$1,087 million at the end of 2023.
Statutory performance fee revenues of $308 million increased from $178 million
in 2023, with both alternative and long-only strategies generating performance
fees during the year. Our asset-weighted relative investment outperformance
was 1.0% across all categories, compared with 1.6% in 2023. Core gains on
investments of $50 million, compared with $48 million in 2023, were generated
by mark-to-market gains across our seed book. An increase in core costs to
$963 million from $835 million in 2023 was driven by higher performance
fee-related variable compensation and higher fixed compensation costs
reflecting the full-year impact of Man Varagon and continued investment in the
business to drive our strategic priorities forward. This was partially offset
by the impact of the weakening of sterling against the US dollar in the year.
Restructuring costs of $22 million were incurred in 2024 following the
amalgamation of our discretionary investment offerings early in the year, and
a group-wide realignment of resources towards our strategic priorities towards
the end of the year. These costs have been classified as non-core as they are
non-recurring in nature.
Core rental income decreased from $5 million in 2023 to $2 million in 2024 as
a result of the reclassification of leases with our Riverbank House
sub-tenants to finance leases following an extension of the leases to the end
of the head lease term. In 2024, we signed a further lease with a new
sub-tenant that is treated as an operating lease. Substantially all of the
space available for sub-let in Riverbank House is now occupied, with the
majority of our sub-leases classified as finance leases, resulting in an
ongoing reduction in core rental income. There is a partially offsetting
increase in associated finance income from $1 million in 2023 to $3 million in
2024.
Total non-core items (excluding tax) increased from a net expense of $61
million in 2023 to $75 million in 2024, primarily due to the non-recurring
restructuring costs of $22 million and an increase of $11 million in the
revaluation of acquisition-related payables associated with non-controlling
and rollover interests, partially offset by FX gains of $6 million compared
with losses of $11 million in 2023. Costs associated with legal claims and a
decrease in the gain on disposal of right-of-use lease assets were offset by
the impact of non-recurring acquisition costs and the impairment of acquired
intangibles in 2023. Non-core items include adjustments of $28 million (2023:
$21 million) to the income statement charge relating to amounts payable to the
Varagon sellers who remain members of senior management post-acquisition in
order to adjust the expense recognised in the year to reflect the
corresponding profits generated.
$m Year ended Year ended
31 December 31 December
2024 2023
Core net management fee revenue 1,097 963
Core performance fees 310 180
Core gains on investments 50 48
Core rental income 2 5
Core net revenue 1,459 1,196
Asset servicing costs (67) (58)
Core compensation costs (684) (595)
Core other costs (199) (179)
Net finance expense (23) (21)
Core other employment-related expenses (10) (2)
Third-party share of post-tax profits (3) (1)
Core profit before tax 473 340
Core management fee profit before tax 323 280
Core performance fee profit before tax 150 60
Non-core items (before tax) (75) (61)
Core profit 381 271
Statutory profit 298 234
Statutory EPS (diluted) 25.1¢ 19.4¢
Core EPS (diluted) 32.1¢ 22.4¢
Core management fee EPS (diluted) 21.5¢ 18.4¢
Proposed dividend per share 17.2¢ 16.3¢
We continue to be strongly cash-generative, with core cash flows from
operations excluding working capital movements of $502 million in the year.
Our strong and liquid balance sheet allows us to continue to invest in the
business in line with our strategic priorities to support our long-term growth
prospects while enabling us to navigate periods of stress.
At 31 December 2024, we had net tangible assets of $867 million, including
$225 million of cash (excluding amounts held by consolidated fund entities)
and net of $70 million of acquisition-related liabilities which begin to
crystallise from 2028. We continue to invest heavily in technology to ensure
we remain at the forefront of active investment management, allocate capital
to seed new strategies and support innovation, and return capital surplus to
our requirements to shareholders via dividends and share repurchases. Our
total proposed dividend for the year of 17.2¢ per share represents an
increase of 6% from 16.3¢ in 2023, in line with our progressive dividend
policy. We also completed the $50 million share repurchase that we announced
in February, taking the total announced returns to shareholders for 2024 to
over $249 million, and $1.8 billion over the last five years.
Impact of foreign exchange rates
The portion of our non-US dollar denominated AUM was negatively impacted by
the strengthening of the US dollar, particularly towards the end of the year,
reducing our reported AUM by $3.8 billion. This also had a negative impact on
our core net management fee revenue. The weakening of sterling against the US
dollar also contributed to a decrease in core costs of around $6 million
compared with 2023.
Assets under management
Change
$bn 31 December Net inflows/ Investment Other 31 December $bn %
2023 (outflows) performance 2024
Alternative Absolute return 47.7 (0.7) 0.3 (2.0) 45.3 (2.4) (5)
Total return 42.5 0.6 0.5 (2.1) 41.5 (1.0) (2)
Multi-manager solutions 19.4 (3.9) 0.2 (1.3) 14.4 (5.0) (26)
Total 109.6 (4.0) 1.0 (5.4) 101.2 (8.4) (8)
Long-only Systematic 36.5 (4.9) 7.3 (0.3) 38.6 2.1 6
Discretionary 21.4 5.6 2.6 (0.8) 28.8 7.4 35
Total 57.9 0.7 9.9 (1.1) 67.4 9.5 16
Total 167.5 (3.3) 10.9 (6.5) 168.6 1.1 1
Absolute return
The decrease in absolute return AUM was driven by negative other movements of
$2.0 billion and net outflows of $0.7 billion, primarily from trend-following
strategies, partially offset by continued inflows into Institutional
solutions. Positive investment performance of $0.3 billion was driven by a
number of strategies in the category, partially offset by negative returns
from alternative trend-following.
Total return
The decrease in total return AUM was driven by negative other movements of
$2.1 billion, partially offset by net inflows of $0.6 billion, primarily into
multi-asset risk parity, and positive absolute investment performance of $0.5
billion.
Multi-manager solutions
AUM decreased by $5.0 billion, primarily due to net outflows of $3.9 billion,
largely from low net management fee margin Infrastructure mandates, and
negative other movements of $1.3 billion.
Systematic long-only
AUM increased by $2.1 billion, with positive absolute performance of $7.3
billion across all strategies in the category, partially offset by net
outflows of $4.9 billion, including a single client redemption of $7.0 billion
driven by a strategic decision to switch their entire equities allocation to a
passively managed portfolio.
Discretionary long-only
AUM increased by $7.4 billion during the year. Net inflows of $5.6 billion
were primarily into credit and convertibles. Positive performance of $2.6
billion was driven by multiple strategies, reflecting strong security
selection across our investment teams.
Revenue
Statutory net revenue increased to $1,477 million from $1,194 million in 2023
due to the growth in management fee revenue and higher performance fee
generation. Similarly, core net revenue increased from $1,196 million to
$1,459 million.
Core net Net management Run rate net
management fees fee margin Run rate core net management fee margin
management fees
($m) (bps)
(bps)
($m)
2024 2023 2024 2023 31 December 2024 31 December 2023 31 December 2024 31 December
2023
Absolute return 525 526 110 112 498 544 110 114
Total return 285 208 66 64 265 294 64 69
Multi-manager solutions 27 34 18 17 28 33 19 17
Systematic long-only 106 81 27 24 102 91 27 25
Discretionary long-only 151 110 57 59 165 125 57 58
Other service income 3 4 n/a n/a n/a n/a n/a n/a
Total 1,097 963 63 63 1,058 1,087 63 65
Management fees
Core net management fee revenue increased by 14% to $1,097 million in 2024
(2023: $963 million), driven by a full-year of contribution from Man Varagon
and higher average AUM over the period. Net management fee margin remained
stable at 63 basis points as the accretive impact from Man Varagon was offset
by strong net inflows and investment performance in discretionary long-only
strategies, which are typically lower margin.
The absolute return net management fee margin decreased to 110 basis points
from 112 basis points, due to lower average AUM in trend-following strategies,
which are higher margin strategies. The total return net management fee margin
increased by 2 basis points to 66 basis points, as the increase from higher
margin Man Varagon AUM was partially offset by higher average AUM in lower
margin alternative risk premia. The multi-manager solutions net management fee
margin increased to 18 basis points in 2024 from 17 basis points in 2023,
driven by outflows from low margin Infrastructure and direct access mandates.
The net management fee margin of systematic long-only strategies increased
from 24 basis points to 27 basis points due to strong performance in Global
and Emerging markets strategies. Discretionary long-only net management fee
margins decreased from 59 basis points in 2023 to 57 basis points in 2024 due
to strong net inflows and performance in relatively lower margin credit
strategies, including Global Investment Grade Opportunities and Corporate
Bond.
Run rate core net management fee revenue was $1,058 million at 31 December
2024 compared with $1,087 million at the end of 2023. This is largely due to
mix effects, as AUM became more heavily weighted towards lower margin
long-only strategies. Similarly, the run rate net management fee margin at 31
December 2024 decreased to 63 basis points from 65 basis points at 31 December
2023.
Performance fees and gains on investments
Core performance fees for the year of $310 million (2023: $180 million)
comprised $264 million from alternative strategies (2023: $163 million) and
$46 million from long-only strategies (2023: $17 million). A broad range of
strategies contributed to our performance fee earnings in the year,
demonstrating the progress we have made in diversifying our business. We had
$51 billion of performance-fee-eligible AUM as of the end of 2024.
Core gains on investments of $50 million (2023: $48 million) were generated by
mark-to-market gains across our seed book, including $13 million from our CLO
positions.
Rental income
The agreement we signed in 2023 with one of our sub-tenants to extend their
lease to the end of the head lease reduced core rental income to $2 million
for the year, compared with $5 million in 2023 due to the derecognition of the
associated right-of-use asset and the recognition of a finance lease
receivable. We signed a new lease in the year with another of our sub-tenants
for an additional portion of the vacant space in the building. As this lease
also extends to the end of the head lease, we realised a gain on disposal of
right-of-use asset of $3 million, classified as a non-core item, with future
depreciation and occupancy costs also lower as a result. A further lease we
signed with a new sub-tenant towards the end of the year brings the building
to substantially full occupancy until the end of our head lease.
Costs
Asset servicing
Asset servicing costs vary depending on transaction volumes, the number and
mix of funds, and fund NAVs. Asset servicing costs for the year were $67
million compared with $58 million in 2023, which equated to around 5 (2023: 5)
basis points of average AUM, excluding systematic long-only strategies. The
year-on-year increase was driven by the increase in average AUM and a full
year of costs associated with Man Varagon of $4 million.
Compensation costs
Core compensation costs were $684 million for the year, an increase of 15% on
the $595 million recognised in 2023. The increase is due to a full year of
costs associated with Man Varagon, higher performance fees which also
increased variable compensation, as well as higher fixed compensation costs.
Our compensation ratio is between 40% and 50% of core net revenue, depending
on the mix and level of revenue. We expect to be at the higher end of the
range in years when performance fees are lower or driven predominantly by
discretionary strategies. Conversely, we expect to be at the lower end of the
range when performance fees are high or driven by systematic strategies. The
overall compensation ratio decreased to 47% in 2024 from 50% in 2023,
reflecting the increase in performance fee revenue generated in the year.
Restructuring costs linked to the realignment of resources with our strategic
priorities were $22 million in the year, and have been classified as non-core
items as they were non-recurring in nature. In the prior year, no similar
non-recurring restructuring costs were incurred.
Other costs
Core other costs, which exclude acquisition-related costs and amounts incurred
by consolidated fund entities, increased to $199 million in 2024 from $179
million in 2023, driven by an increase in software amortisation, staff
benefits and investments in technology and communications. This was partially
offset by the impact of the weakening of sterling against the US dollar, as
the majority of our cost base is denominated in sterling.
Tax
The majority of our profits are earned in the UK, with significant profits
also arising in the US, where our cash tax rate is effectively nil as a result
of available deferred tax assets, and in Switzerland, which currently has a
lower rate than the UK. Tax on statutory profit for the year was $100 million
(2023: $45 million). The statutory effective tax rate of 25% increased from
16% in 2023 as a result of the recognition of an additional portion of our
accumulated US tax losses following the Varagon acquisition last year, which
drove a one-off reduction in the rate. The core tax rate in 2024 was 19%
compared with 20% in 2023, as the recognition and utilisation of available US
deferred tax assets are excluded from the core tax expense.
In the US, we have accumulated tax losses and tax-deductible goodwill and
intangibles of $78 million (2023: $89 million) that can be offset against
future US profits, thereby reducing taxable profits. We have recognised $76
million of the available $78 million US deferred tax assets at 31 December
2024 (2023: $86 million and $89 million respectively), with the unrecognised
portion relating to state and city tax losses expected to expire before
utilisation. We have now utilised substantially all our federal tax losses and
expect to pay tax on any profits we may earn in the US going forward.
The principal factors influencing our future underlying tax rate are the mix
of profits by tax jurisdiction, the rate of consumption of available deferred
tax assets and changes to applicable statutory tax rates. The global minimum
tax rate, which came into effect in 2024, has not resulted in significant
top-up taxes becoming due.
Profit
Statutory profit increased from $234 million in 2023 to $298 million in 2024,
with core profit increasing from $271 million to $381 million over the same
period. Statutory EPS (diluted) increased from 19.4¢ in 2023 to 25.1¢ in
2024 (22.4¢ and 32.1¢ respectively on a core basis), with the increase in
profitability enhanced slightly by a decrease in share count as a result of
the $50 million of shares repurchased during the year.
Cash earnings
We believe that core profit is an appropriate measure of our cash flow
generation due to our strong conversion of profits into cash, although the
timing of cash conversion is impacted by the cyclicality of our working
capital position and the size of our net seed book. Core cash flows from
operations excluding working capital movements were $502 million for the year.
As at 31 December 2024, our cash balance, excluding amounts held by
consolidated fund entities, was $225 million.
$m Year ended Year ended
31 December 31 December
2024 2023
Opening available cash and cash equivalents 180 349
Core cash flows from operations excluding working capital movements 502 362
Working capital movements (excluding seeding) (65) (132)
Working capital movements - seeding 78 119
Acquisition of subsidiaries, net of cash acquired - (170)
Dividends paid (192) (181)
Share repurchases (including costs) (50) (223)
(Repayment)/drawdown of borrowings (140) 140
Other movements (88) (84)
Closing available cash and cash equivalents 225 180
Balance sheet
Our balance sheet remains strong and liquid. Available cash and cash
equivalents increased to $225 million at 31 December 2024 from $180 million at
the end of 2023, with all borrowings repaid in the year. Our seeding portfolio
decreased from $595 million to $532 million during the year, primarily due to
capital returned from CLO strategies.
$m 31 December 31 December
2024 2023
Available cash and cash equivalents 225 180
Seeding investments portfolio 532 595
Borrowings -- (140)
Other tangible assets and liabilities 110 147
Net tangible assets 867 782
Goodwill and intangibles 809 830
Shareholders' equity 1,676 1,612
Seed investments
We use our balance sheet to invest in new products, aiming to redeem as client
AUM in the funds grows. In the year, we have redeemed $434 million from the
seed book and reinvested $332 million. We had seed investments of $532 million
at 31 December 2024 (2023: $595 million), of which $16 million were financed
via repos (2023: $45 million). In addition, we held $232 million of total
return swap exposure at 31 December 2024 (2023: $230 million). This approach
allows us to maintain our seed portfolio exposure in a cash-efficient way.
The statutory consolidation of some of our CLOs results in a significant
gross-up of assets and liabilities in the consolidated balance sheet. Our
maximum exposure to loss associated with interests in our CLOs is limited to
our investment, as reflected in the seeding investments portfolio balance
which excludes the impact of this gross-up.
Capital management and shareholder returns
Our robust balance sheet and liquidity position allow us to invest in the
business, support our long-term growth prospects and maximise shareholder
value. They also enable us to withstand periods of stress. We actively manage
our capital to maximise value to shareholders by either investing that capital
to improve shareholder returns in the future or returning it through higher
dividends or share repurchases. In 2024, we announced and completed a $50
million share repurchase.
The Board is proposing a final dividend for 2024 of 11.6¢ per share, which
together with the interim dividend of 5.6¢ per share equates to a total
dividend for the year of 17.2¢ per share. This represents an increase of 6%
on the 2023 full year dividend. The proposed final dividend of around $134
million is adequately covered by our available liquidity and capital
resources. Key dates relating to the proposed final dividend are provided on
page 3.
Our business is highly cash-generative, with these cash flows supporting our
progressive dividend policy, under which dividends per share are expected to
grow over time. We ensure we maintain a prudent balance sheet at all times by
taking into account liquidity requirements before investing capital,
considering potential strategic opportunities or returning it to shareholders.
Over the past five years, we have returned $0.9 billion to shareholders
through dividends and announced $0.9 billion of share buybacks. As a result,
our weighted average share count has decreased by 20% to 1,160 million over
that same period.
Our revolving credit facility of $800 million provides additional liquidity as
required. The facility was extended in December 2024 to mature in December
2029 and has a further one-year extension option. We have maintained prudent
capital and available liquidity throughout the year, deploying our capital to
support investment management operations and new investment products,
utilising the revolving credit facility when appropriate. We monitor our
capital requirements through continuous review of our regulatory and economic
capital, including regular reporting to the Risk and Finance Committee and the
Board.
Planning for the impacts of climate change
Whilst climate change has not significantly impacted our financial performance
and position to date, we embed the consideration of the potential future
impacts of climate change on our business into our financial planning and
reporting processes, as we consider appropriate. We seek to minimise the
carbon emissions of our office premises and remain thoughtful around
inter-office travel, using lower-carbon modes of transport where possible, as
part of our ongoing commitment to reduce our carbon footprint and to reach net
zero by 2030. We also continue to embed targets to reduce our Scope 3 carbon
emissions from business travel into our annual budgeting process.
The directors do not expect potential climate-related impacts on the
consolidated financial statements to be material in the short to medium term.
In particular, in performing their assessment the directors have considered
the impact of climate change on our going concern and viability, the cash flow
forecasts used in the impairment assessments of non-current assets, and the
assumptions around future life expectancies used in the valuation of the net
pension asset. We continue to monitor the potential longer-term impacts of
climate change risks on the judgements and estimates used in the preparation
of the consolidated financial statements.
Antoine Forterre
Chief Financial Officer
Risk management - principal and emerging risks
Risk Mitigants Status and trend Change
Business risks
Investment performance and net redemptions Fund underperformance, on an absolute basis, relative to a benchmark or Man Group's investment divisions each have clearly defined investment Markets were generally buoyant in 2024, but also had moments of disruption Unchanged
relative to peer groups, may result in lower subscriptions and higher processes with integrated risk management, designed to target and deliver on linked to central bank policy and geopolitical events. In this context
redemptions. This risk is heightened at times of disrupted and volatile the investment mandate of each product. We focus on hiring and retaining performance was good for our long-only products, which generally outperformed
markets, which could be triggered by geopolitical or climate factors. This highly skilled professionals who are incentivised to deliver alpha within the the rising markets, including our discretionary credit products which
may also result in dissatisfied clients, negative press and reputational parameters of their mandate. delivered strong absolute performance. However, these market conditions were
damage.
not suited to systematic trend-following funds.
Man Group's diversified range of products and strategies limits the risk to
Absolute underperformance also reduces AUM, resulting in lower management and the business from underperformance of any particular strategy or market. In Although inflows were strong, particularly for Solutions and discretionary
performance fees. line with the outlined strategy, we have increased diversification though AUM credit, these were offset by some large outflows from some institutional
growth in our credit strategies in 2024. clients looking to change strategy and monetise their gains. We did not see
any investor concerns or material outflows as a result of our outlined
strategy.
Key person risk A key person to the business leaves or is unable to perform their role. Business and investment processes are designed to minimise the impact of Man Group has continued to be able to attract and retain an array of talented Unchanged
losing any key individuals. Diversification of strategies and the emphasis on individuals across the firm. In 2024 there was a resource review and
Retention risk may increase in years of poor performance and the expectation technology and systematic strategies reduce the overall risk to Man Group. reallocation designed to deliver on our strategic priorities and create
of reduced compensation.
opportunities for junior talent to grow.
Succession plans and deferred compensation schemes are in place to support the
retention of senior investment professionals and key management.
Credit risks
Counterparty A counterparty with which the funds or Man Group have financial transactions, Man Group and its funds diversify exposures across a number of the strongest After an eventful 2023, 2024 was a calm year for counterparty concerns. Unchanged
directly or indirectly, becomes distressed or defaults. available financial counterparties, each of which is approved and regularly
reviewed and challenged for creditworthiness by a firm-wide counterparty The prospect of decreased regulation and capital requirements for US banks may
Shareholders and investors in Man Group funds and products are exposed to committee. see systemic risk growing in the longer term.
credit risk of exchanges, prime brokers, custodians, sub-custodians, clearing
houses and depository banks. The Risk teams monitor credit metrics on the approved counterparties daily.
This includes credit default swap spreads and credit ratings.
Liquidity risks
Corporate and fund Man Group is exposed to having insufficient liquidity resources to meet its An $800 million revolving credit facility, maturing December 2029, with a The full repayment of the revolving credit facility (following the 2023 Unchanged
obligations. one-year extension option, provides Man Group with a robust liquidity backstop acquisitions of Varagon and Asteria), the balance sheet seeding programme
and flexibility to manage seasonal liquidity demands. Liquidity forecasting (including use of external financing) and completion of a $50 million share
Adverse market moves and volatility may sharply increase the demands on the for Man Group and the UK/EEA sub-group, including downside cases, facilitates buyback in 2024 were planned and managed without issues.
liquid resources in Man Group's funds. Market stress and increased redemptions planning and informs decision-making.
could result in the deterioration of fund liquidity and in the severest cases
The asset liquidity distribution across funds remained broadly unchanged but
this could lead to the gating of funds. The Financial Risk team conducts regular liquidity tests on Man Group's funds. growth of our credit strategies increased the quantity of lower liquidity
We endeavour to manage resources in such a way as to meet all plausible assets. Our in-house liquidity analysis and reporting toolkit continued to
demands for fund redemptions according to contractual terms. evolve and now includes a firm-wide fixed income limit framework. There were
no material trading liquidity challenges.
Market risks
Investment book performance Man Group uses capital to seed new funds to build our fund offering and A disciplined framework ensures that each request for seed capital is assessed The investment book size reduced over 2024, while balance sheet risk-taking Increased
expand product distribution. Man Group also holds CLO risk retention positions based on its risk and return on capital. increased, driven by two new large unhedged credit positions. There were 13
until the product maturity. The firm is exposed to a decline in value of the
new positions in 2024, managed by active recycling of existing investments.
investment book. Approvals are granted by a Seed Investment Committee (SIC), which is comprised
of senior management, Risk and Treasury. Investments are subject to risk The investment book returns were positive with performance coming from across
Varagon private markets loan origination and syndication is a shorter-term limits and an exit strategy and are hedged to a benchmark where appropriate. the core seed book (net of benchmark hedge) and our CLO equity positions.
risk, exposed to sharp credit spread widening during the holding period. The positions and hedges are monitored regularly by Financial Risk and
reviewed by the SIC.
DB pension performance Man Group underwrites the risks related to the UK defined benefit pension plan The UK pension plan has a low net exposure to UK interest rates and RPI A triennial valuation exercise updated the actuarial assumptions as of 2023 Decreased
which closed to new members in 1999 and future accrual in 2011. The plan is inflation though the use of index-linked gilt, corporate bond and
year-end which increased the scheme's actuarial surplus. The accounting and
healthy but is exposed to changes in net asset versus liability values. This Liability-Driven Investment (LDI) funds. The return-seeking assets are low actuarial surplus increased marginally over 2024.
could come from underperformance of return-seeking assets or changes in volatility and have a low correlation to directional equity markets. Longevity
expected member longevity assumptions. is the largest risk but is uncorrelated to Man Group's other risks. The additional cost of an insurance buy-in came down in 2024, largely due to
more competitive pricing. Although the cost remains in excess of our appetite,
The plan is operated separately from steps have been taken to ensure the scheme is in a position to approach the
Man Group and managed by independent trustees, including its investment insurance market if pricing improves and Man Group and the trustees deem a
decisions. buy-in is appropriate for the scheme and its members.
Risk Mitigants Status and trend Change
Operational risks
Internal process failure Risk of losses or harm resulting from inadequate or failed corporate or fund Man Group's risk management framework and internal control systems are based Man Group continues to prioritise improving systems and controls to minimise Increased
processes within Man Group, including employee-related issues. on a three lines model and have continued to operate during the year. process failures.
Risks and controls are reassessed periodically and in the event of material During 2024, recent acquisitions were integrated in line with plans and AUM
change, risk events or issues, to determine the adequacy of the control increased. Man Group also announced organisational changes in support of its
environment. strategy. Whilst change can add risk, the strategic aim to reduce
organisational complexity and the successful delivery and embedding of the new
strategic Order Management System will significantly offset the additional
risk in future years.
External (third-party) process failures Man Group continues to outsource several functions and manage critical Man Group's Operations team has implemented a robust methodology (including The firm's key outsourcing providers remain intentionally concentrated with a Unchanged
third-party arrangements on behalf of its funds. Risks arise through the ongoing third-party due diligence and KPI monitoring) to confirm that critical small group of carefully selected and proven names with which it has
supplier life cycle from sourcing and selection, to contracting and third-party service providers are delivering as required. well-established and embedded working relationships. There has been no notable
onboarding, to service delivery and monitoring and finally, to exit and increase or decrease in the number of material issues caused by, or
offboarding. The most material risk is that critical third-party service experienced by, our critical third-party providers during 2024 and there have
providers do not or are unable to perform services as required, including due been no material losses or other impacts.
to bankruptcy, resulting in knock-on implications for our business and
processes.
Model and data integrity Man Group is a technology-empowered active investment management firm which Man Group has embedded systems, controls and operational change control Man Group continues to source and provision new investment data sources and Unchanged
continues to make use of advanced quantitative trading strategies that processes for models and data. Change management controls are applied to new data analytics, and has reviewed the algorithmic trading process in response
necessitate a robust approach to data acquisition and consumption, model models, model changes and calibrations. to events in the wider industry and as required by the MiFID II (Markets in
implementation and execution. Key risks include model/algorithm failures or
Financial Instruments Directive II) Regulatory Technical Standards 6.
issues with data upon which decisions are made. Controls are both preventative and detective to minimise the potential
consequences from such an event arising. Man Group has not observed an increase in material internal risk events in
2024.
Information and cybercrime security Risk of losses or harm resulting from the loss of information in electronic or Man Group has an established information security and cyber security programme Man Group continues to improve its defence using state-of-the-art technologies Increased
hard copy form held by Man Group and arising as a result of sabotage, hacking, with relevant policies and procedures, that are aligned with industry and best practices, enabling us to detect, prevent and respond to malicious
virus attack or other malicious disruption causing system failure. expectations and best practices. Man Group's Chief Information Security activities and complex cyber-attacks. Although we have not experienced any
Officer, together with the Information Security Steering Committee, ensure material issues in 2024, the increasing cyber risk assessment is fuelled by a
that our control environment is continuously reviewed and adjusted to keep multitude of factors including the rise of AI-driven phishing attacks via
pace with the evolving regulatory, legislative and cyber threat landscapes. models like ChatGPT; the increasing risk of vulnerabilities in the supply
chain; and the increasing impact and cost of cyber breaches.
Unchanged
Risk of losses or harm incurred by IT software and hardware failures resulting Technology plays a fundamental role in delivering our objectives. The single Man Group continues to enhance its technology, with a focus on platform
in system downtime, severely degraded performance or limited system Technology team of 470+ professionals aligns with each business unit to ensure enrichment, centralising order management, and expanding capacity.
Information technology and business continuity functionality. work is correctly prioritised and financed. The prioritisation process
considers the life cycle of both hardware and software to ensure both are Annual combined disaster recovery exercises have been conducted across key
Business continuity risks may arise from incidents such as a denial of access adequately supported and sized. The firm's operational processes include trading applications which were switched to run from our back-up data centre.
to a key site or a data centre outage, which could lead to business mature risk, incident and problem management procedures to minimise the
disruption. likelihood and impact of technology failures. The Business Continuity and Resilience (BCR) team focused on enhancing the
programme to ensure Man Group remains operationally resilient and prepared for
Business continuity risk mitigation includes detailed planning and testing of disruptions. In 2024, the crisis management framework was updated, and over 25
remote access and contingency/recovery operations, and ongoing risk and threat scenarios were tested to identify vulnerabilities and validate recovery
assessments. solutions.
Criminal activities Risk of losses or harm through wrongful, unauthorised activities or criminal Man Group operates a framework consisting of policies, procedures and regular Man Group continues to strengthen and adapt its control environment to monitor Unchanged
deception intended to result in financial or personal gain; or incurred training to staff to support compliance with applicable laws and regulations. and meet the challenges of an evolving regulatory environment with heightened
through failure to comply with (or have adequate procedures to ensure
sanctions and enforcement actions.
compliance with) laws and regulations relating to anti-money laundering, Internal policies, processes and controls are subject to regular review and
counter-terrorist financing, anti-bribery and corruption, breach of economic consultation internally and with external advisers to ensure we remain well No material incidents were seen in 2024, and the firm complies with the
sanctions, insider trading and market abuse. placed to manage evolving requirements. Man Group has a dedicated KYC team and evolving sanctions regime.
support, independent oversight and challenge are also being provided by Man
Group's Compliance and Financial Crime teams.
Legal, compliance and regulatory The breadth and complexity of the regulations and legislative requirements Man Group operates global legal and compliance frameworks which underpin all Man Group continues to experience new regulatory requirements and invest Increased
that Man Group and its funds are, or were historically subject to, across aspects of its business and are resourced by experienced teams. These teams heavily in compliance, technology, and reporting infrastructure to meet the
multiple jurisdictions, represent significant operational risks, should the are physically located in Man Group's key jurisdictions, helping them to growing regulatory expectations. In 2024 key areas included ESG and
firm fail to comply with them. Man Group supports proportionate and thoughtful understand the context and impact of any requirements. sustainability, operational resilience, private fund adviser reforms,
regulation and initiatives that develop the regulatory environment. However,
outsourcing and third-party risk management.
change can also result in increased operational complexity and costs to Man Emphasis is placed on proactively analysing new legal and regulatory
Group or the sectors or markets in which it operates. developments and communications to assess likely impacts and mitigate risks. Man Group's engagement with the key regulators remains very active and work
The governance framework includes ongoing proactive reporting and management continues to support a number of regulatory initiatives.
Failure to comply with laws and regulations may put Man Group at risk of of potential and actual legal and litigation risks.
fines, lawsuits or reputational damage.
Man Group continues to robustly defend legal proceedings relating to matters
Man Group continues to liaise directly and indirectly with competent arising in the ordinary course of the group's businesses.
authorities e.g. FCA, SEC, FINMA, CBI.
Risk Mitigants Status and trend Change
Reputational risks
Negative publicity The risk that an incident or negative publicity undermines our reputation as a Our reputation is dependent on our operational and fund performance and the Man Group enjoys a good reputation. The CEO and Chair transitions and new Unchanged
leading investment manager and place to work. Reputational damage could result conduct of our employees. Our governance and control structure mitigates strategic objectives have been received positively by those covering the
in significant redemptions from our funds, and could lead to difficulties with operational concerns, and our attention to people and investment processes are Company. Work continues to protect its reputation across stakeholder groups,
external financing, credit ratings, talent attraction/retention and relations designed to comply with accepted standards of investment management practice. while simultaneously building out Man Group's profile, particularly in North
with regulators, core counterparties and outsourcing providers. We encourage a culture of openness, inclusion and diversity. America and across newer focus channels and our investment capabilities such
as Wealth, Private Credit and Insurance.
Emerging risks
Potential future threats Emerging risks are complementary to the current principal risks and represent The Board, Executive Committee and Risk teams monitor emerging risks, trends Emerging risks are assessed internally and discussed with the Board on a Increased
potential future threats to Man Group's performance, development or viability. and changes in the likelihood or impact following discussions with subject six-month cycle. The dominant theme this year was heightened geopolitical
By definition, these entail greater uncertainty about if or when the risk or matter experts. This assessment informs the universe of principal risks tensions (conflicts in Ukraine and the Middle East, tension with China and the
an event may manifest. managed and mitigated by the firm. wholesale impact of a year of global elections particularly the US). These are
discussed in the spotlight section.
The emerging risk categories include natural disasters, pandemics, disruption
to financial markets and business infrastructure, geopolitical risk and Whilst the likelihood of many of the risks has increased, no changes were made
changes in the competitive landscape. to Man Group's headline principal risks.
Climate change risks
Physical risks Physical risks, and specific event uncertainties, of business disruption, Man Group has a small number of employees, a relatively limited The firm will continue to monitor and manage its risks through Unchanged
property damage or impacts on employee well-being due to a severe weather physical footprint and can operate completely remotely - as it has done in business-as-usual reporting and management processes for the relevant
event. the past. principal risk (see below).
Transition risks Transition risks, and timing uncertainties, as the world moves towards a Man Group has an agile business model, so is well equipped to adjust to Man Group met its 2024 short-term emissions targets and work continues in line Unchanged
low-carbon economy can be legal, regulatory, technological, market or medium-term transition risks and also capture any opportunities. With a strong with our pathway to net zero. We are now ISO 14001:2018 accredited and
reputational. This may impact the appetite for and performance of some track record for innovation, the firm continues to focus on providing our continue the work pursuant to our Building Performance Optimisation review of
investment products. sustainability-driven investors with products that incorporate ESG analytics. our London headquarters.
We saw a significant reduction, compared to 2023, in the weighted average
carbon intensity (WACI) for our AUM subject to Net Zero Asset Managers
initiative (NZAMI) interim targets.
Risk Mitigants Status and trend Change
Link to our other principal risks Investment performance is exposed to market disruption or volatility triggered Man Group's diversified range of products and strategies limits the risk to We continue to offer a range of products that appeal to clients focused on Unchanged
by severe weather events. Performance could also be impacted by fundamental any particular strategy or market. While the integrated portfolio and risk implementing Responsible Investment into their portfolios.
moves in underlying asset prices or liquidity as the world transitions to a management processes help managers understand their risk profiles.
low-carbon economy.
Our operations and ability to work effectively were not materially impacted by
Agile working is well established, and employees can work remotely if offices the heatwaves in the US and Continental Europe, with the majority of
Business continuity risk manifests as damage or disruption to Man Group's are inaccessible. We conduct detailed planning for emerging scenarios along employees working remotely.
offices and data centres and the transportation and supply systems that with testing of remote access and contingency/recovery operations.
support them. In particular our London headquarters may be exposed to flooding
In 2024, we continued to expand our ESG analytics tools, including integration
of the River Thames. Man Group has specific policies and greenwashing controls which continue to of climate Value at Risk and a proprietary sovereign framework.
evolve and are subject to robust review. We take a relatively low key and
Legal and reputation risk currently comes from any suggestion of greenwashing considered approach in our external communications with a focus on education
if the ESG credentials of a fund or our corporate behaviour does not meet and data as well as highlighting the challenges inherent in this area.
client or regulatory expectations. This could lead to redemptions and
regulatory fines as well as damaging relations with core clients, employees
and the wider public.
Directors' responsibility statement
The directors are responsible for preparing the Annual Report and the
financial statements in accordance with applicable law and regulations. The
Annual Report will be published on the Company's website in mid-March and an
announcement will be released to the market confirming when it is available.
The Companies (Jersey) Law 1991 requires the directors to prepare financial
statements for each financial year. Under that law the directors have elected
to prepare the financial statements in accordance with applicable law and
International Financial Reporting Standards (IFRSs) as adopted by the United
Kingdom. The financial statements are required by law to give a true and fair
view of the state of affairs of the Company and of the profit or loss of the
Company for that period.
In preparing the Group financial statements, International Accounting Standard
1 requires that directors:
· properly select and apply accounting policies;
· present information, including accounting policies, in a
manner that provides relevant, reliable, comparable and understandable
information;
· provide additional disclosures when compliance with the specific
requirements in IFRSs are insufficient to enable users to understand the
impact of particular transactions, other events and conditions on the entity's
financial position and financial performance; and
· make an assessment of the Company's ability to continue as a
going concern.
The directors are responsible for keeping proper accounting records that
disclose with reasonable accuracy at any time the financial position of the
Company and enable them to ensure that the financial statements comply with
the Companies (Jersey) Law 1991. They are also responsible for safeguarding
the assets of the Company and hence for taking reasonable steps for the
prevention and detection of fraud and other irregularities.
The directors are responsible for the maintenance and integrity of
the corporate and financial information included on the Company's website.
Legislation in Jersey, Channel Islands governing the preparation and
dissemination of financial statements may differ from legislation in other
jurisdictions.
Each of the directors as at 31 December 2024, confirm that, to the best of
each person's knowledge and belief:
· the financial statements, prepared in accordance with the
relevant financial reporting framework, give a true and fair view of the
assets, liabilities, financial position and profit or loss of the Company and
the undertakings included in the consolidation taken as a whole; the Strategic
report includes a fair review of the development and performance of the
business and the position of the Company and the undertakings included in the
consolidation taken as a whole, together with a description of the principal
risks and uncertainties that they face;
· the Annual Report and the financial statements, taken as a whole,
are fair, balanced and understandable and provide the information necessary
for shareholders to assess the Company's and Group's position, performance,
business model and strategy; and
· there is no relevant audit information of which the Group's
auditor is unaware, and that they have taken all steps that they ought to
have taken as a director in order to make themselves aware of any relevant
audit information and to establish that Man Group's auditor is aware of that
information.
Consolidated income statement
For the year to 31 December
Note 2024 2023
$m
$m
Management and other fees 4 1,126 990
Performance fees 4 308 178
Revenue 1,434 1,168
Net income or gains on investments and other financial instruments 5.1 88 76
Third-party share of gains relating to interests in consolidated funds 5.2 (10) (24)
Rental income 5.2,8.1 3 6
Distribution costs 6 (38) (32)
Net revenue 1,477 1,194
Asset servicing costs 6 (67) (58)
Compensation costs 6.1 (706) (595)
Other employment-related expenses 6.2 (38) (23)
Other costs 6.3 (215) (198)
Finance income 7 15 13
Finance expense 7 (38) (34)
Gain on disposal of investment property - right-of-use lease assets 8.1 3 12
Amortisation and impairment of acquired intangibles 9 (24) (28)
Share of post-tax loss of associates 10 (2) (3)
Revaluation of acquisition-related liabilities (4) -
Third-party share of post-tax profits (3) (1)
Statutory profit before tax 398 279
Tax expense 11.1 (100) (45)
Statutory profit attributable to owners of the Company 298 234
Statutory earnings per share 12
Basic 25.7¢ 19.9¢
Diluted 25.1¢ 19.4¢
Consolidated statement of comprehensive income
For the year to 31 December
Note 2024 2023
$m
$m
Statutory profit attributable to owners of the Company 298 234
Other comprehensive income/(loss):
Remeasurements of defined benefit pension plans 13 2 (10)
Deferred tax on pension plans 11.3 - 2
Items that will not be reclassified to profit or loss 2 (8)
Cash flow hedges:
Valuation gains taken to equity 20 14
Realised gains transferred to consolidated income statement (22) (12)
Deferred tax on cash flow hedges 11.3 1 -
Net investment hedges 7 1
Foreign currency translation (7) 3
Items that may be reclassified to profit or loss (1) 6
Other comprehensive income/(loss) 1 (2)
Total comprehensive income attributable to owners of the Company 299 232
Consolidated balance sheet
At 31 December
Note 2024 2023
$m
$m
Assets
Cash and cash equivalents 14 454 276
Fee and other receivables 15 492 551
Investments in fund products and other investments 5 2,414 2,279
Investments in associates 10 8 11
Current tax assets 11.2 17 15
Finance lease receivable 8.1 77 67
Leasehold improvements and equipment 16 58 53
Leasehold property - right-of-use lease assets 8.2 90 112
Investment property - right-of-use lease assets 8.2 13 17
Investment property - consolidated fund entities 5.2 12 30
Software intangible assets 17 57 54
Deferred tax assets 11.3 117 128
Pension asset 13 13 12
Goodwill and acquired intangibles 9 752 776
Total assets 4,574 4,381
Liabilities
Borrowings 14 - 140
Trade and other payables 18 655 713
Employment-related payables to sellers of businesses acquired 6.2 56 23
Provisions 19 16 16
Current tax liabilities 11.2 3 3
CLO liabilities - consolidated funds 5.2 1,366 1,036
Third-party interest in consolidated funds 5.2 553 554
Third-party interest in other subsidiaries 1 1
Lease liability 8.2 248 283
Total liabilities 2,898 2,769
Net assets 1,676 1,612
Equity
Capital and reserves attributable to owners of the Company 20 1,676 1,612
The financial statements were approved by the Board of Directors on 26
February 2025 and signed on its behalf by:
Robyn Grew Antoine
Forterre
Chief Executive Officer Chief Financial Officer
Consolidated cash flow statement
For the year to 31 December
Note 2024 2023
$m
$m
Operating activities
Cash generated from operations 21 769 470
Interest paid (27) (23)
Payment of lease interest 8.2 (11) (10)
Tax paid 11.2 (83) (100)
Cash flows from operating activities 648 337
Investing activities
Interest received 12 12
Purchase of leasehold improvements and equipment 16 (18) (12)
Purchase of software intangible assets (23) (21)
Acquisition of subsidiaries, net of cash acquired - (170)
Cash flows used in investing activities (29) (191)
Financing activities
Repayments of lease liability principal 8.2 (22) (10)
Purchase of Man Group plc shares by the Employee Trust (35) (56)
Proceeds from sale of Treasury shares in respect of Sharesave 1 4
Share repurchase programmes (including costs) 20 (50) (223)
Ordinary dividends paid to owners of the Company 22 (192) (181)
Transactions with non-controlling shareholders 3 -
Payment of third-party share of post-tax profits (4) -
Payment of upfront costs of revolving credit facility - (3)
Net (repayment)/drawdown of borrowings 14 (140) 140
Cash flows used in financing activities (439) (329)
Net increase/(decrease) in cash and cash equivalents 180 (183)
Cash and cash equivalents at beginning of the year 276 457
Effect of foreign exchange movements (2) 2
Cash and cash equivalents at end of the year 14 454 276
Less: restricted cash held by consolidated fund entities 14 (229) (96)
Available cash and cash equivalents at end of the year 14 225 180
Consolidated statement of changes in equity
$m Note Share capital Reorganisation reserve Profit Man Group plc shares held by Treasury shares Cumulative translation adjustment Other Total
and loss account
Employee
reserves
Trust
At 1 January 2023 46 (1,688) 3,590 (80) (225) 41 15 1,699
Statutory profit - - 234 - - - - 234
Other comprehensive (loss)/income - - (8) - - 4 2 (2)
Total comprehensive income - - 226 - - 4 2 232
Share-based payments - - 40 - - - - 40
Current tax on share-based payments 11.2 - - 5 - - - - 5
Deferred tax on share-based payments 11.3 - - 1 - - - - 1
Purchase of Man Group plc shares by the Employee Trust - - - (56) - - - (56)
Disposal of Man Group plc shares by the Employee Trust - - (30) 30 - - - -
Share repurchases 20 - - (125) - - - - (125)
Transfer to Treasury shares - - 223 - (223) - - -
Transfer from Treasury shares - - (18) - 15 - 3 -
Disposal of Treasury shares for Sharesave - - - - 4 - - 4
Cancellation of Treasury shares (1) - (103) - 103 - 1 -
Dividends paid 22 - - (181) - - - - (181)
Put option over non-controlling interests - - (7) - - - - (7)
At 31 December 2023 45 (1,688) 3,621 (106) (326) 45 21 1,612
Statutory profit - - 298 - - - - 298
Other comprehensive income/(loss) - - 2 - - - (1) 1
Total comprehensive income - - 300 - - - (1) 299
Share-based payments - - 39 - - - - 39
Current tax on share-based payments 11.2 - - 3 - - - - 3
Deferred tax on share-based payments 11.3 - - (2) - - - - (2)
Purchase of Man Group plc shares by the Employee Trust - - - (35) - - - (35)
Disposal of Man Group plc shares by the Employee Trust - - (31) 31 - - - -
Share repurchases 20 - - (50) - - - - (50)
Transfer to Treasury shares - - 50 - (50) - - -
Transfer from Treasury shares - - (8) - 7 - 1 -
Disposal of Treasury shares for Sharesave - - - - 1 - - 1
Cancellation of Treasury shares (1) - (112) - 112 - 1 -
Dividends paid 22 - - (192) - - - - (192)
Put option over non-controlling interests - - 1 - - - - 1
At 31 December 2024 44 (1,688) 3,619 (110) (256) 45 22 1,676
Under the Companies (Jersey) Law 1991, a company may make a distribution from
any source other than the nominal capital account and capital redemption
reserve, included within other reserves. The Company has reserves available
for distribution of $2.9 billion as at 31 December 2024 (2023: $2.9 billion).
Notes to the consolidated financial statements
1. Basis of preparation
Accounting framework
The consolidated financial information has been prepared in accordance with
International Financial Reporting Standards (IFRSs) and interpretations
(IFRICs) as adopted by the United Kingdom. The consolidated financial
statements are prepared on a going concern basis using the historical cost
convention, except for certain financial instruments that are measured at fair
value and defined benefit pension plans. Our significant accounting policies,
which have been consistently applied in the current and prior years, are
included in the relevant notes, except for those below which relate to the
consolidated financial statements as a whole.
The financial information included in this statement does not constitute
statutory accounts. Statutory accounts for the year ended 31 December 2024,
upon which the auditors have issued an unqualified report, will shortly be
delivered to the Jersey Registrar of Companies. The Annual Report and the
Notice of the Company's 2025 Annual General Meeting (AGM) will be posted to
shareholders and will be available to download from the Company's website on 7
March 2025. The Annual General Meeting will be held on 9 May 2025 at 9am at
Riverbank House, 2 Swan Lane, London EC4R 3AD. For further details please
refer to the Notice of our 2025 Annual General Meeting when available.
Consolidation
The consolidated group is the Company and its subsidiaries (together Man
Group). The consolidated financial statements are presented in United States
dollars (USD), the Company's functional currency, as the majority of our
revenues, assets, liabilities and financing are denominated in USD.
Monetary assets and liabilities denominated in foreign currencies are
translated at the spot rate on each balance sheet date. Non-monetary items
carried at fair value that are denominated in foreign currencies are
translated at the rates prevailing at the date when the fair value was
determined. Non-monetary items that are measured at historical cost in a
foreign currency are not retranslated. Transactions denominated in foreign
currencies are converted at the spot rate at the date of the transaction or,
if appropriate, the average rate for the month in which the transaction
occurs. The resulting exchange differences are recognised in the consolidated
income statement.
For consolidated entities that have a functional currency other than USD, the
assets and liabilities are translated into USD at the spot rate on the balance
sheet date. Income and expenses are translated at the average rate for the
period in which the transactions occur. The resulting exchange differences
between these rates are recorded in other comprehensive income.
We apply net investment hedge accounting to the net assets of material
subsidiaries that have a functional currency other than USD. Gains or losses
on derivatives are recycled from the consolidated income statement through
other comprehensive income in the foreign currency translation reserve in
equity to offset the impact of any currency translation of the net assets of
these subsidiaries. The accumulated gains or losses are recycled to the
consolidated income statement on disposal of the related subsidiary.
The consolidated financial information contained within these financial
statements incorporates our results, cash flows and financial position and
includes our share of the results of any associates and joint ventures using
the equity method of accounting. Subsidiaries are entities we control
(including certain structured entities, as defined by IFRS 12 'Disclosure of
Interests in Other Entities') and are consolidated from the date on which
control is transferred to us until the date that control ceases. Control
exists when we have the power to direct the relevant activities, exposure to
significant variable returns and the ability to utilise power to affect those
returns. All intercompany transactions and balances are eliminated on
consolidation. Although the Employee Trust has independent trustees and its
assets are held separately, it is consolidated into the financial statements
given its nature as a structured entity which has the obligation to deliver
deferred compensation awards to our employees.
Business combinations
Man Group uses the acquisition method to recognise acquired businesses from
the date on which we obtain control of the acquiree. The consideration
transferred in an acquisition is measured at the fair value of the assets
transferred, including any contingent consideration, the liabilities incurred,
and any equity instruments issued. The fair value of the business acquired is
measured at the fair value of the acquiree's identifiable assets and
liabilities at that date. Goodwill is measured as the excess of the sum of the
consideration transferred and the amount of any non-controlling interests in
the acquiree over the net of the amounts of the identifiable assets acquired
and liabilities assumed at the acquisition date. Acquisition-related costs are
recognised in the consolidated income statement as incurred. Any contingent
consideration is recognised at fair value at the acquisition date, with
subsequent changes in fair value recognised in the consolidated income
statement. Non-controlling interests in subsidiaries are measured either at
fair value or at the non-controlling interest's proportionate share of the
acquiree's identifiable net assets on a case-by-case basis. Immaterial
non-controlling interests may not be disclosed separately, with the
non-controlling interest in consolidated profits deducted from statutory
profit before tax within other costs and share of equity offset against the
profit and loss account. Put options held by third parties over their
non-controlling interests are classified as a financial liability as there is
no unavoidable right to defer settlement of the obligation.
Operating segments
The Chief Operating Decision Maker (CODM) has been identified as the Man Group
Board (the Board) as Man Group's key decision-making body.
Management information regarding revenues, net management fee margins and
investment performance relevant to the operation of the investment managers,
products and the investor base are reviewed by the Board. A centralised shared
infrastructure for operations, product structuring, distribution and support
functions for our investment management business means that operating costs
are not allocated to its constituent parts. As a result, performance is
assessed, resources are allocated, and other strategic and financial
management decisions are determined by the Board, considering our investment
management business as a whole. Accordingly, we operate and report the
investment management business as a single segment, together with relevant
information regarding AUM, flows and net management fee margins, to allow for
analysis of the direct contribution of products and the respective investor
base.
Impact of new accounting standards
There were no new or amendments to existing accounting standards issued by the
International Accounting Standards Board (IASB) effective for the first time
in the year to 31 December 2024 that have had a significant impact on these
consolidated financial statements.
In November 2023, the IASB issued an exposure draft (ED) on Financial
Instruments with Characteristics of Equity, which impacts the accounting for
non-controlling interests over which there is a put option. The ED requires
non-controlling interests to be recognised and measured based on current
rights associated with an instrument, as well as the recognition of a put
option over an entity's own shares at the present value of the gross
settlement value. While the proposals have not had a material impact on the
consolidated financial statements to date, the impact could become more
material in the future should the value of non-controlling interests increase.
The IASB continues to deliberate the feedback to the ED before deciding on the
future project direction.
IFRS 18 'Presentation and Disclosures in Financial Statements' was issued in
2024 and is effective for accounting periods commencing on or after 1 January
2027. The application of IFRS 18 will have an impact on the consolidated
financial statements from a presentation and disclosure perspective.
No other standards or interpretations issued and not yet effective are
expected to have a material impact on the consolidated financial Statements.
2. Going concern
The preparation of the consolidated financial statements on a going concern
basis is supported by the forecast financial performance and capital and
liquidity analysis of Man Group, as approved by the Board. This analysis
considers our net tangible assets and liquidity resources and requirements and
utilises the Man Group budget, medium-term plan and the capital and liquidity
plan. These plans include rigorous downside testing, including analyses of
stressed capital and liquidity scenarios, and incorporate Man Group's
principal and emerging risks, which are outlined on pages 18 to 23 and
monitored by the Board on an ongoing basis.
3. Judgemental areas and accounting estimates
The preparation of financial statements in conformity with IFRS requires the
use of accounting estimates and assumptions. We continually evaluate our
estimates and judgements based on historical experience and expectations of
future events that are considered reasonable in the circumstances. These
judgements and estimates are an area of focus for the Board and, in
particular, the Audit and Risk Committee.
Critical judgements
Consolidation of fund entities
Man Group acts as the investment manager or adviser to fund entities. A
significant area of judgement is whether we control certain of those fund
entities to which we are exposed via either direct investment holdings, total
return swaps, or sale and repurchase arrangements. We assess such
relationships on an ongoing basis to determine whether we control each fund
entity and therefore consolidate them into our results. Further details
of the control assessment are set out in Note 5.
Employment-related expenses
Amounts payable to sellers of businesses acquired who hold put options over
their non-controlling interests and who are also employees are accounted for
as employment-related expenses rather than consideration for the acquisition
because those payments are contingent on the completion of a minimum service
period. As the value of the payments is linked to equity interests in the
business, the arrangements are accounted for as cash-settled share-based
payments. Significant judgement is applied in determining the appropriate
accounting policies to apply to these arrangements since the terms differ
significantly from those of a traditional share-based payment. In particular,
judgement is applied in treating each employee's share of the post-acquisition
profits of the business and the underlying put option as a single instrument,
and in selecting the appropriate vesting period.
Critical accounting estimates
Employment-related expenses
The value of employment-related expenses arising from business combinations is
a source of significant estimation uncertainty as the expenses are determined
with reference to the expected future value and performance of the business
acquired. The valuation reflects the best estimate of the amounts payable
under the put options and has been estimated using a discounted cash flow
model. Changes in the fair value of these cash-settled share-based payments,
including the discount unwind, will be recognised in the consolidated income
statement up until the final settlement date. Details of the assumptions used
in the valuation, together with a sensitivity analysis, are set out in Note
6.2.
Pension
The estimation uncertainty arising on the valuation of the net pension asset
remains a critical accounting estimate, as adopting alternative assumptions
for the key inputs could result in a materially different value being
recognised on the consolidated balance sheet (Note 13).
Other considerations
The measurement of provisional values of the identifiable assets acquired,
liabilities assumed and goodwill arising on the acquisition of Varagon Capital
Partners, L.P. in 2023 was disclosed as a critical accounting estimate in the
prior year. As these amounts were finalised during the year with no
adjustment, this is no longer considered an area of critical estimation
uncertainty.
The Board has also considered the assumptions used in the assessments for:
impairment of goodwill, investments in associates and finance lease
receivables; and the recoverability of deferred tax assets. The Board has
concluded that these assumptions do not have a significant risk of causing a
material adjustment to the carrying amounts of our assets or liabilities at
the balance sheet date.
The Board has also considered the impact of climate change on the consolidated
financial statements, in particular in relation to the going concern
assessment, the cash flow forecasts used in the impairment assessments of
non-current assets and the assumptions around future life expectancies used in
the valuation of the net pension asset. The impact of climate change on the
consolidated financial statements is not currently expected to be material.
4. Revenue
Accounting policy
Fee income is our primary source of revenue, which is derived from the
investment management agreements that we have in place with the fund entities
or the accounts that we manage.
Management and other fees, which include all non-performance related fees, are
recognised in the period in which the services are provided and do not include
any other performance obligations. Fees are generally based on an agreed
percentage of NAV or AUM and are typically charged in arrears and receivable
within one month.
Performance fees relate to the performance of the funds or managed accounts
managed during the year and are recognised as the performance obligation is
satisfied, whereby the fee can be reliably estimated and it is highly probable
that a significant reversal will not occur. This is generally at the end of
the performance period or upon early redemption by an investor when the fee
has crystallised. Until the performance period ends, market movements could
significantly move the NAV of the fund products and therefore the value of any
performance fees receivable. For alternative strategies, we will typically
only earn performance fees on any positive investment returns in excess of the
high-water mark, meaning we will not be able to earn performance fees with
respect to positive investment performance in any year following negative
performance until that loss is recouped. For long-only strategies, performance
fees are usually earned only when performance is in excess of a predetermined
strategy benchmark (positive alpha). Where performance fees are earned over a
longer timeframe, usually in relation to private markets funds, revenue may be
recognised before the contractual crystallisation date. In this case,
constraints are applied to the performance fee accrued in the relevant fund to
reflect the uncertainty of performance over the remaining period to
crystallisation. Once crystallised, performance fees typically cannot be
clawed back.
Rebates, which relate to repayments of management and performance fees
charged, typically to institutional investors, are recognised in the same
period as the associated fees. As rebates constitute a reduction in the fees
charged for services provided, they are presented net within management and
other fees and performance fees in the consolidated income statement.
5. Investments in fund products and other investments
Accounting policy
Investments in fund products are classified at fair value through profit or
loss, with net gains due to movements in fair value recognised through net
income or gains on investments and other financial instruments.
The fair values of investments in fund products other than CLOs are typically
derived from their reported NAVs, which in turn are based upon the value of
the underlying assets. The valuation of the underlying assets within each fund
product is determined by external valuation service providers based on an
agreed valuation policy and methodology. While these valuations are performed
independently of Man Group, we have established oversight procedures and due
diligence processes to ensure that the NAVs reported by the external valuation
service providers are reliable and appropriate. Purchases and sales of
investments are recognised on trade date.
Our holdings in unconsolidated CLO risk retention assets are priced using a
bottom-up valuation method. We use third-party valuations to price the
securities within the underlying portfolios and then apply the percentage of
the CLO notes we hold to these valuations.
Seeding investments portfolio
We use capital to invest in fund products as part of our ongoing business, to
build product breadth and to trial investment research developments before
marketing the products broadly to investors. Seed capital is invested via
direct holdings in fund products or sale and repurchase (repo) arrangements,
which allow us to finance seed investments in a cash-efficient way.
Alternatively, we may obtain exposure to seed investments via total return
swap (TRS) arrangements. Under a repo arrangement we are committed to
repurchase the underlying seed investments at maturity and pay an interest
charge over the period, with the obligation to repurchase the assets on
maturity recorded as a liability within trade and other payables. Under a TRS
arrangement, we are under no form of repayment obligation and have no
ownership interest (or voting rights) in the underlying investment. In
exchange for the returns on the underlying seed investments, we pay a floating
rate of interest.
Other than our holdings in CLOs and co-investments, our seed investments are
generally liquid in nature and may be liquidated at short notice. It is not
practicable to allocate our seeding investments portfolio between amounts
expected to be recovered or settled within or after 12 months after the end of
the reporting period as the sale or liquidation of seed investments is subject
to client asset raising and the ongoing requirements of the business. The
majority of our CLO holdings are likely to be settled more than 12 months
after the end of the reporting period.
Consolidation
The control considerations under IFRS 10 'Consolidated Financial Statements'
apply to fund product investments, including those underlying our repo and TRS
instruments. Fund entities deemed to be controlled are consolidated on a
line-by-line basis from the date control commences until it ceases. In the
control assessment, we consider our exposure to variable returns and the
existence of substantive kick-out rights. Other factors considered include the
nature of relevant fee arrangements, the decision-making powers we hold as
investment manager or adviser and whether the shares we hold include voting
rights. Where we do not control the fund, our investment is classified within
investments in fund products.
We only have limited exposure to the variable returns of the fund entities we
manage unless we either hold an investment in the fund entity or receive the
returns of the fund entity via a TRS or repo arrangement. For most fund
entities: the existence of independent boards of directors; rights which allow
for the removal of the investment manager or adviser; the influence of
external investors; limited exposure to variable returns; and the arm's length
nature of our contracts with those fund entities, indicate that we do not
control them. As a result, the associated assets, liabilities, and results of
these funds are not consolidated into the financial statements.
The assets held by the CLOs we consolidate are priced using independent
pricing sources. Other than subordinated notes, the debt liabilities
of consolidated CLOs are valued at par plus accrued interest, which is
considered equivalent to fair value. The subordinated notes of these CLOs are
priced using an intrinsic valuation approach, excluding any potential future
value.
Investment property held by consolidated fund entities comprises land and
buildings held to earn rent or for capital appreciation, or both, and is
measured at cost less depreciation and impairment. Other than land, which is
not depreciated, depreciation is calculated on a straight-line basis over the
asset's estimated useful life (between three and 30 years).
Third-party interests in consolidated fund entities are measured at fair
value, typically derived from the reported NAVs.
Fund product investments held for deferred compensation arrangements
We hold fund product investments related to deferred compensation arrangements
to offset any change in the associated compensation cost over the vesting
period. At vesting, the value of the fund investment is delivered to the
employee. These fund product investments are measured at fair value and
include balances held by the Employee Trust.
Investments in loans
From time to time, Man Group warehouses loans it underwrites and originates
with the intention of syndicating such loans following a short period of time.
These investments in loans are included within investments in fund products
and other investments on the consolidated balance sheet and measured at fair
value through profit or loss.
Hedge accounting
We apply cash flow hedge accounting to fund investments related to deferred
fund product awards, whereby the offsetting gains or losses on these fund
products are matched against the corresponding fund product-based payment
compensation charge in the consolidated income statement pro rata over the
vesting period. Gains or losses are recognised through other comprehensive
income and held within the cash flow hedge reserve in equity until they are
recycled over the vesting period into the consolidated income statement.
The seeding investments portfolio reflects our exposure to holdings in
investments in fund products, as follows:
2024 2023
$m
$m
Investments in fund products 231 289
Investments in loans 27 -
Investments in consolidated funds: CLO assets 1,453 1,103
Investments in consolidated funds: other transferable securities 702 884
Other investments 1 3
Investments in fund products and other investments 2,414 2,279
Less:
Fund investments held for deferred compensation arrangements (189) (189)
Investments in consolidated funds: exclude consolidation gross-up of net (1,692) (1,492)
investment
Other investments (1) (3)
Seeding investments portfolio 532 595
Included in fund investments held for deferred compensation arrangements at 31
December 2024 are balances of $87 million (2023: $101 million) which are
expected to be settled after more than 12 months.
At 31 December 2024, exposure to fund products via TRS was $232 million (2023:
$230 million). Additional exposure via repo arrangements (included within
investments in fund products, with an offsetting repayment obligation included
within trade and other payables) was $16 million (2023: $45 million). The
largest single investment in fund products at 31 December 2024 was $52 million
(2023: $88 million).
5.1. Net income or gains on investments and other financial instruments
2024 2023
$m
$m
Net gains on seeding investments portfolio 47 47
Consolidated fund entities: gross-up of net gains on investments 32 39
Foreign exchange movements 6 (11)
Net gains on fund investments held for deferred compensation arrangements and 3 1
other investments
Net income or gains on investments and other financial instruments 88 76
5.2. Consolidation of investments in funds
At 31 December 2024, our interests in 36 (2023: 35) funds, including CLOs, met
the definition of control and have therefore been consolidated on a
line-by-line basis.
Consolidated fund entities are included within the consolidated balance sheet
and income statement as follows:
2024 2023
$m
$m
Balance sheet
Cash and cash equivalents 229 96
CLO assets(1) 1,453 1,103
Other transferable securities(1) 702 884
Fee and other receivables 6 88
Investment property 12 30
Trade and other payables (20) (116)
CLO liabilities (1,366) (1,036)
Net assets of consolidated fund entities 1,016 1,049
Third-party interest in consolidated funds (553) (554)
Net investment held by Man Group 463 495
Income statement
Net gains on investments(2) 62 90
Rental income(3) 1 1
Management fee expenses(4) (9) (5)
Performance fee expenses(4) (2) (2)
Other costs(5) (12) (9)
Net gains of consolidated fund entities 40 75
Third-party share of gains relating to interests in consolidated funds (10) (24)
Net gains attributable to net investment held by Man Group 30 51
Notes:
1 Included within investments in fund products and other investments.
2 Included within net income or gains on investments and other financial
instruments.
3 Relates to rental income generated from investment property held by
consolidated fund entities.
4 Relates to management and performance fees paid by the funds to Man
Group during the year, which are eliminated within management and other fees
and performance fees respectively in the consolidated income statement.
5 Includes depreciation, impairment and gains or losses on disposal of
investment property held by consolidated fund entities.
Movements in the carrying value of investment property held by consolidated
fund entities can be analysed as follows:
2024 2023
$m
$m
Cost at beginning of the year 34 38
Additions 8 -
Disposals (30) (4)
Cost at end of the year 12 34
Accumulated depreciation and impairment at beginning of the year (4) (4)
Depreciation - (1)
Disposals 2 -
Reversal of impairment 2 1
Accumulated depreciation and impairment at end of the year - (4)
Net book value at beginning of the year 30 34
Net book value at end of the year 12 30
The fair value of investment property held by consolidated fund entities of
$16 million at 31 December 2024 (2023: $30 million) is based on valuations
provided by independent property experts or agreed sales prices.
6. Costs
Accounting policy
Distribution costs
Distribution costs, which are paid to external intermediaries for marketing
and investor servicing, largely in relation to retail investors, are
typically variable with AUM and the associated management fee revenue.
Distribution costs are expensed over the period in which the service
is provided.
Asset servicing costs
Asset servicing includes custodial, valuation, fund accounting, registrar,
research and administration functions performed by third parties on behalf of
the funds or managed accounts, as well as market data acquired under contract
to Man Group. Asset servicing costs are recognised in the period in which the
services are provided. The costs of these services vary based on transaction
volumes, the number of funds or managed accounts and their NAVs, and the mix
of client strategies.
Compensation costs
Salaries, variable cash compensation and social security costs are charged to
the consolidated income statement in the period in which the service
is provided and include partner drawings. In the short term, the variable
component of compensation adjusts with revenues and profitability.
Compensation can be deferred by way of equity-settled share-based payment
schemes and fund product-based compensation arrangements. Where deferred
compensation relates to our fund products, the fair value of the employee
services received in exchange for the fund investments is recognised as a
straight-line expense of the mark-to-market value of the awards over the
relevant vesting period, with a corresponding liability recognised in the
consolidated balance sheet. We generally elect to separately purchase the
equivalent fund investments at grant date to offset any associated change in
the value of deferred compensation due, and on vesting the value of the fund
investment is delivered to the employee (subject to the terms of the plan
rules, which include malus provisions). If a fund product-based award is
forfeited, the cumulative charge recognised in the consolidated income
statement is reversed in full.
Other employment-related expenses
Other employment-related expenses relate to amounts payable to sellers of
businesses acquired in exchange for post-acquisition services and are
recognised in profit and loss up to the vesting of the put options over the
sellers' non-controlling interests.
6.1. Compensation costs
2024 2023
$m
$m
Salaries 219 201
Variable cash compensation 294 205
Deferred compensation: share-based payment charge 39 40
Deferred compensation: fund product-based payment charge 81 83
Social security costs 54 50
Pension costs (Note 13) 19 16
Compensation costs 706 595
Comprising:
Fixed compensation: salaries and associated social security costs, and pension 264 239
costs
Variable compensation: variable cash compensation, deferred compensation and 442 356
associated social security costs
The unamortised deferred compensation at 31 December 2024 is $103 million
(2023: $120 million) and has a weighted average remaining vesting period of
2.1 years (2023: 2.2 years).
We recognised $22 million of non-recurring restructuring costs in the year
ended 31 December 2024 (2023: nil), included within variable compensation
costs. These costs were incurred in realigning our resources with the future
requirements of the business.
Average headcount
The table below details average headcount by function, including directors,
employees, partners and contractors.
2024 2023
Investment management 456 469
Sales and marketing 288 251
Technology and infrastructure 1,058 996
Average headcount 1,802 1,716
Headcount at 31 December 1,777 1,790
6.2. Other employment-related expenses
Other employment-related expenses of $38 million (2023: $23 million) comprise
amounts which would be payable to the sellers of businesses acquired on
exercise of the put options to acquire their non-controlling interests, and
the distributions of those sellers' proportionate share of post-acquisition
profits. Of the total expense recognised, $10 million (2023: $2 million)
relates to the proportionate share of profits earned in the year.
The associated employment-related payables at 31 December 2024 of $56 million
(2023: $23 million) are accounted for as cash-settled share-based payments
(Note 25).
The valuation uses forecast cash flows based on management's best estimate of
future profits. These cash flows are underpinned by our medium-term plan for
the three years post the balance sheet date, and appropriate growth
assumptions for the remainder of the period until the final settlement date in
2034. A terminal value multiple in line with the market is applied to the
profits in the final year to determine the value of the amounts payable to the
sellers on exercise of the put options over their non-controlling interests.
The discount rates used have been benchmarked against external comparables and
reflect the risks inherent in the future cash flows. The forecast
distributions for the period up to the exercise date of the put option in 2034
are accumulated and expensed over the minimum service periods ending between
2026 and 2029. The present value of the forecast settlement amount of the put
option is expensed over the same vesting periods.
Valuation assumptions
2024 2023
Discount rate
- Management fee earnings 11% 11%
- Performance fee earnings 17% 17%
Sensitivity analysis
The value recognised for other employment-related expenses is an area of
significant estimation uncertainty as the fair value has been determined with
reference to the expected future value and performance of a portion of the
business. The estimates will be updated in each reporting period until the
associated liabilities are settled. The table below illustrates the impact of
changing the most significant assumptions used in the expected future value
calculation on the expense recognised in the consolidated income statement.
Increase/(decrease) in employment-related expense
$m 2024
Discount rate decreased/(increased) by 5% 25 (16)
Forecast growth in future cash flows increased/(decreased) by 50% 16 (11)
6.3. Other costs
2024 2023
$m
$m
Audit, tax, legal and other professional fees 27 24
Technology and communications 27 24
Staff benefits 23 19
Occupancy 18 20
Temporary staff, recruitment, consultancy and managed services 15 13
Travel and entertainment 12 11
Marketing and sponsorship 7 5
Insurance 5 5
Costs associated with legal claims 4 1
Other cash costs 14 10
Other costs - consolidated fund entities (Note 5.2) 12 9
Acquisition-related costs - 9
Other costs before depreciation and amortisation 164 150
Depreciation of right-of-use lease assets (Note 8.2) 15 14
Depreciation of leasehold improvements and equipment (Note 16) 11 12
Amortisation of software intangible assets (Note 17) 25 22
Total other costs 215 198
Auditor remuneration
2024 2023
$m
$m
Fees payable to the external auditor for the audit of the consolidated 1.0 1.0
financial statements
Other services:
The audit of the Company's subsidiaries pursuant to legislation 3.2 2.7
Audit-related assurance services 0.5 0.5
All other services 0.4 0.3
Total auditor's remuneration 5.1 4.5
7. Finance income and finance expense
2024 2023
$m
$m
Finance income
Interest on cash deposits 12 12
Unwind of net investment in finance lease discount (Note 8.1) 3 1
Total finance income 15 13
Finance expense
Unwind of lease liability discount (Note 8.2) (11) (10)
Interest expense on total return swaps and sale and repurchase agreements (15) (12)
Other finance expense (12) (12)
Total finance expense (38) (34)
Net finance expense (23) (21)
8. Leases and rental income
8.1. Man Group as lessor
Accounting policy
Man Group's lease arrangements primarily relate to business premises property
leases. We act as intermediate lessor in respect of certain right-of-use (ROU)
lease assets which are in turn sub-let to third parties. We assess whether a
contract is or contains a lease at the inception of the contract. The lease
term is determined as the non-cancellable period of a lease, together with
periods covered by an option to extend the lease if we consider that exercise
of the extension option is reasonably certain and periods covered by an option
to terminate the lease if the break option is reasonably certain not to be
exercised. Lease extension options and break clauses inherent in our
sub-leases do not have a significant impact.
Finance leases
Whenever the terms of a sub-lease transfer substantially all risks and rewards
of ownership of the underlying ROU lease asset to the lessee, we classify the
contract as a finance lease. This is typically when the end of the sub-lease
term aligns with the end of our head lease, with no break option. Amounts due
from lessees under finance leases are recognised as receivables at the amount
of the net investment in the lease. The net investment in the lease is
measured at the present value of the lease payments receivable over the lease
term and any upfront incremental costs of obtaining the lease, discounted
using our incremental cost of borrowing under the head lease. The net
investment in the lease is adjusted for lease payments and finance lease
interest as well as the impact of any subsequent lease modifications. Finance
lease interest is included within finance income.
Operating leases
Sub-leases which do not meet the definition of a finance lease are classified
as operating leases. Sub-lease rental income is recognised on a straight-line
basis over the lease term in the consolidated income statement.
An impairment expense is recognised for the amount by which the related ROU
lease asset's carrying value exceeds its recoverable amount, being its value
in use. For the purposes of assessing impairment, investment property ROU
lease assets are grouped at the lowest levels for which there are separately
identifiable cash flows, being the individual sub-lease contract level.
The contractual undiscounted lease payments receivable under operating and
finance leases were as follows:
2024 2023
$m Operating leases Finance Operating Finance
leases
leases
leases
Within one year 1 3 2 -
Between one and two years - 5 1 3
Between two and three years 1 10 - 5
Between three and four years 1 11 - 9
Between four and five years - 11 - 10
Between five and ten years - 54 - 47
Between ten and 15 years - 9 - 17
3 103 3 91
At 31 December 2024, the contractual undiscounted minimum finance lease
payments receivable can be reconciled to the net investment in finance lease
as follows:
2024 2023
$m
$m
Undiscounted lease payments 103 91
Less: unearned finance income (26) (24)
Net investment in finance lease 77 67
Movements in the net investment in finance lease are as follows:
2024 2023
$m
$m
At beginning of the year 67 -
Additions 9 65
Unwind of finance lease discount 3 1
Foreign exchange movements (2) 1
At end of the year 77 67
Fair value of investment property
2024 2023
$m
$m
Value in use 16 23
Less:
Carrying value (13) (17)
Headroom 3 6
Sub-lease rental income from operating leases was $2 million in 2024 (2023: $5
million). Operating expenses of $1 million (2023: $5 million) arising from
investment property that did not generate rental income during the period are
included within other costs.
In 2024, we signed a sub-lease for a portion of the vacant space in our main
premises in London. As the sub-lease extends to close to the end of the head
lease with no break option, it is classified as a finance lease. On lease
commencement, we recognised a finance lease receivable. The derecognition of
the associated ROU lease asset resulted in a gain on disposal of $3 million
(2023: $12 million) being recognised in the consolidated income statement.
8.2. Man Group as lessee
Accounting policy
For arrangements where we are the lessee, a ROU lease asset and a related
lease liability are recognised on the consolidated balance sheet at the date
from which we have the right to use the asset, usually the lease commencement
date. For short-term leases (defined as leases with a term of one year or
less) and leases of low-value assets, we recognise the lease payments on a
straight-line basis over the lease term within other costs in the consolidated
income statement. The exercise of break clauses inherent in our leases are
typically not reflected in the lease term other than on the occurrence of a
significant event or change in circumstances.
ROU lease assets relating to the portion of our leased business premises which
we then sub-let under operating leases are classified as investment property,
with other ROU lease assets classified as leasehold property. Transfers from
investment property to leasehold property occur when we commence development
of a previously sub-let portion of our leased business premises with a view to
occupying that space. Similarly, transfers from leasehold property to
investment property occur when we cease to occupy a portion of the leased
business premises with the intention of sub-letting that space under an
operating lease. Investment property ROU lease assets are derecognised when
the associated space is sub-let under a finance lease, with a finance lease
receivable recognised in the consolidated balance sheet on lease commencement.
All of our ROU lease assets, including those classified as investment
property, are measured at cost less depreciation and impairment. Cost includes
the amount of the initial measurement of the associated lease liability, lease
payments made at or before the lease commencement date, lease incentives
received, associated leasehold improvements classified as investment property
and estimated costs to be incurred in restoring the property to the condition
required under the terms of the lease. Depreciation is calculated on a
straight-line basis over the asset's estimated useful life, which for
leasehold improvements classified as investment property is the shorter of the
lease term and the life of the improvement (up to 24 years) and for all other
assets is the lease term and is included within other costs. We assess ROU
lease assets for impairment whenever events or circumstances indicate that the
carrying amount may not be recoverable.
All lease liabilities are measured at the present value of lease payments due
over the lease term, discounted using our incremental cost of borrowing (being
the rate we would have to pay to finance a similar asset) at the lease
commencement date or the modification date. The lease liability is adjusted
for lease payments and unwind of lease liability discount as well as the
impact of any subsequent lease modifications. The unwind of lease liability
discount is included within finance expense.
Cash payments in relation to leases, which reduce the lease liability
recognised on the consolidated balance sheet, are presented as payment of
lease interest (within operating activities) and repayments of principal lease
liability (within financing activities) in the consolidated cash flow
statement. Payments in relation to short-term leases and leases of low-value
assets are included within cash flows from operating activities.
Right-of-use lease assets
2024 2023
$m Leasehold property Investment property Total Leasehold property Investment property Total
Cost at beginning of the year 199 101 300 169 242 411
Acquired through business combinations - - - 22 - 22
Additions 5 - 5 3 - 3
Disposals (2) (50) (52) - (141) (141)
Remeasurement on modification (14) - (14) 5 - 5
Cost at end of the year 188 51 239 199 101 300
Accumulated depreciation and impairment at beginning (87) (84) (171) (77) (171) (248)
of the year
Disposals 2 48 50 - 91 91
Depreciation (13) (2) (15) (10) (4) (14)
Accumulated depreciation and impairment at end (98) (38) (136) (87) (84) (171)
of the year
Net book value at beginning of the year 112 17 129 92 71 163
Net book value at end of the year 90 13 103 112 17 129
Lease liability
The maturity of our contractual undiscounted cash flows for the lease
liability is as follows:
2024 2023
$m
$m
Within one year 19 32
Between one and five years 120 114
Between five and ten years 138 142
Between ten and 15 years 28 54
Undiscounted lease liability at end of the year 305 342
Discounted lease liability at end of the year 248 283
Of the total discounted lease liability at 31 December 2024 of $248 million
(2023: $283 million), $10 million (2023: $21 million) is expected to be
settled within 12 months.
Movements in the lease liability are as follows:
2024 2023
$m
$m
At beginning of the year 283 253
Acquired through business combinations - 22
Additions 5 3
Cash payments (33) (20)
Unwind of lease liability discount 11 10
Remeasurement on modification (14) 5
Foreign exchange movements (4) 10
At end of the year 248 283
9. Goodwill and acquired intangibles
Accounting policy
Goodwill
Goodwill is measured as the excess of the sum of the consideration transferred
and the amount of any non-controlling interest over the fair value of the
identifiable net assets of the acquired business at the date of acquisition.
Goodwill is carried on the consolidated balance sheet at cost less accumulated
impairment, has an indefinite useful life, is not subject to amortisation and
is tested for impairment annually, or whenever events or circumstances
indicate that the carrying amount may not be recoverable. An impairment
expense is recognised for the amount by which the asset's carrying value
exceeds its recoverable amount. The recoverable amount of our group of
cash-generating units (CGUs) is assessed each year using a value in use
calculation.
Goodwill does not generate cash flows independently of other groups of assets
and thus is assigned to a group of CGUs for the purposes of impairment
testing. Our CGUs are aggregated into a single group for impairment testing
purposes, reflecting the lowest level at which goodwill is monitored by
management and which incorporates our private market asset managers alongside
our liquid asset managers.
The value in use calculation uses cash flow projections based on the
Board-approved financial plan for the subsequent three-year period from the
balance sheet date, plus a terminal value. The valuation analysis is based on
best practice guidance whereby a terminal value is calculated at the end of a
discrete budget period and assumes, after this three-year budget period, no
growth in asset flows above the long-term growth rate.
The assumptions applied in the value in use calculation are derived from past
experience and assessment of current market inputs. We have applied a
bifurcated discount rate to the modelled cash flows to reflect the different
risk profile of management fee profits and performance fee profits. The
discount rates are based on our weighted average cost of capital using a
risk-free interest rate, together with an equity market risk premium and an
appropriate market beta derived from consideration of our own beta, similar
alternative asset managers, and the asset management sector as a whole. The
terminal value is calculated based on the projected closing AUM at the end of
the three-year forecast period and applying the mid-point of a range of
historical multiples to the forecast cash flows associated with management and
performance fee profits.
The value in use calculation is presented on a post-tax basis, consistent with
the prior year, given most comparable market data is available on a post-tax
basis. This is not significantly different to its pre-tax equivalent.
Acquired intangibles
Intangible assets acquired in a business combination and recognised separately
from goodwill are initially measured at their fair value at the acquisition
date. Following initial recognition, acquired intangibles are held at cost
less accumulated amortisation and impairment. Acquired intangibles comprise
investment management agreements and related client relationships (IMAs),
distribution channels and brand names and are initially recognised at fair
value based on the present value of the expected future cash flows and are
amortised on a straight-line basis over their expected useful lives, which are
between seven and 15 years (IMAs and brands), and eight and 12 years
(distribution channels). Acquired intangibles are reviewed for impairment
whenever events or changes in circumstances indicate that the carrying amount
may not be recoverable. Disposals of acquired intangibles are recognised in
the year the related cash inflows are transferred.
2024 2023
$m Goodwill IMAs Brand Total Goodwill IMAs Brand Total
names and distribution channels
names and distribution channels
Cost at beginning of the year 2,455 974 103 3,532 2,425 834 96 3,355
Acquired through business combinations - - - - 30 140 7 177
Cost at end of the year 2,455 974 103 3,532 2,455 974 103 3,532
Accumulated amortisation and impairment at beginning of the year (1,836) (824) (96) (2,756) (1,836) (801) (91) (2,728)
Amortisation - (23) (1) (24) - (22) (3) (25)
Impairment - - - - - (1) (2) (3)
Accumulated amortisation and impairment at end of the year (1,836) (847) (97) (2,780) (1,836) (824) (96) (2,756)
Net book value at beginning of the year 619 150 7 776 589 33 5 627
Net book value at end of the year 619 127 6 752 619 150 7 776
Goodwill impairment assumptions
Key assumptions at 31 December 2024 and 31 December 2023 Pre-tax equivalent Assumptions
adopted(1)
Compound average annualised growth in AUM (over three years) 6%
Discount rate
- Management fee earnings 14% 11%
- Performance fee earnings 22% 14%
Terminal value (mid-point of range of historical multiples)
- Management fee earnings 13.0x
- Performance fee earnings 5.5x
- Implied terminal growth rate 3%
Note:
1 Earnings discount rate assumptions are presented post-tax. Earnings
multiples are applied to the forward year.
Goodwill impairment and sensitivity analyses
Details of the valuations are provided below, including sensitivity tables
which show scenarios whereby the key assumptions are changed to stressed
assumptions, indicating the modelled headroom or impairment that would result.
We have considered reasonably foreseeable changes in the compound average
annualised growth in AUM forecast assumption, stressing this by 2% and the
lower of 10% or to the point at which impairment would arise. Each assumption,
or set of assumptions, is stressed in isolation. The results of these
sensitivities make no allowance for mitigating actions that management would
take if such market conditions persisted.
2024 2023
$m
$m
Value in use 5,090 5,560
Less:
Carrying value of CGUs (870) (880)
Headroom 4,220 4,680
Discount rates (post-tax) Multiples (post-tax)
Sensitivity analysis at 31 December 2024 Compound average Management fee/ Management fee/
annualised growth in AUM
performance fee
performance fee
Key assumption stressed to: 6% 4% (4)%(1) 10%/16% 12%/18% 14.0x/6.5x 12.0x/4.5x
Modelled headroom ($m) 4,220 3,680 1,690 4,340 4,100 4,650 3,790
Increase/(reduction) in value in use ($m) (540) (2,530) 120 (120) 430 (430)
Discount rates (post-tax) Multiples (post-tax)
Sensitivity analysis at 31 December 2023 Compound average Management fee/ Management fee/
annualised growth in AUM
performance fee
performance fee
Key assumption stressed to: 6% 4% (4)%(1) 10%/16% 12%/18% 14.0x/6.5x 12.0x/4.5x
Modelled headroom ($m) 4,680 4,150 2,190 4,810 4,550 5,140 4,220
Increase/(reduction) in value in use ($m) (530) (2,490) 130 (130) 460 (460)
Note:
1 Stressed by 10%, as opposed to the point of impairment, given an
impairment scenario is not reasonably foreseeable.
Impairment of acquired intangibles
In 2023, acquired intangibles with a carrying value of $3 million were fully
impaired following the termination of the IMAs to which they relate.
10. Investments in associates
Accounting policy
Associates are entities in which Man Group holds an interest and over which we
have significant influence but not control. In assessing significant
influence, we consider our power to participate in the financial and operating
policy decisions of the investee through its voting or other rights.
Associates are accounted for using the equity method. Under the equity method,
associates are carried at cost plus our share of cumulative post-acquisition
movements in undistributed profits/losses. Gains and losses on transactions
between Man Group and our associates are eliminated to the extent of our
interests in these entities. An impairment assessment of the carrying value of
associates is performed annually or whenever events or changes in
circumstances indicate that the carrying amount may not be recoverable, with
any impairment recognised in the consolidated income statement.
2024 2023
$m
$m
At beginning of the year 11 14
Return of capital (1) -
Share of post-tax loss (2) (3)
At end of the year 8 11
In 2021, we acquired a 23% interest in Hub Technology Partners Ltd (HUB) for
cash of $19 million and $1 million in contribution of other assets. We have
assessed the carrying value of our investment in HUB for impairment following
a revision to its business plan. As the carrying value has been significantly
reduced due to losses incurred during the development phase, we do not
consider our investment to be impaired.
11. Tax
Accounting policy
Tax expense
Tax expense is based on our taxable profit for the year. While the Company is
domiciled in Jersey, it is UK tax resident due to management and control being
exercised in the UK. Taxable profit differs from net profit as reported in the
consolidated income statement because it excludes items of income or expense
that are taxable or deductible in other years, in addition to items that are
never taxable or deductible. Accounting for tax involves a level of estimation
uncertainty given the application of tax law requires a degree of judgement,
which tax authorities may dispute. Tax liabilities are recognised based on the
best estimates of probable outcomes, with regard to external advice where
appropriate.
We are a global business and therefore operate across multiple different tax
jurisdictions. Income and expenses are allocated to these different
jurisdictions based on transfer pricing methodologies set in accordance with
the laws of the jurisdictions in which we operate, and international
guidelines as laid out by the Organisation for Economic Co-operation and
Development (OECD). The effective tax rate results from the combination of
taxes paid on earnings attributable to the tax jurisdictions in which they
arise.
Deferred tax
Deferred tax is recognised using the balance sheet liability method in respect
of temporary differences between the carrying amounts of assets and
liabilities for financial reporting purposes and the amounts used for tax
purposes.
Deferred tax is calculated at the tax rates that are expected to apply in the
period when the liability is settled, or the asset is realised, based on tax
laws and rates that have been enacted or substantively enacted at the
reporting date.
The carrying amount of deferred tax assets is reviewed at each reporting date
and reduced to the extent that it is no longer probable that sufficient
taxable profits will be available to allow all or part of the asset to be
recovered.
Deferred tax assets and liabilities are offset when there is a legally
enforceable right to offset current tax assets against current tax liabilities
when they relate to income taxes levied by the same taxation authority and we
intend to settle those current tax assets and liabilities on a net basis.
11.1 Tax expense
Factors affecting the tax expense for the year
The majority of our profits in the period were earned in the UK, Switzerland
and the US. Our tax expense is the same as (2023: lower than) the amount that
would arise using the theoretical tax rate applicable to our profits
as follows:
2024 2023
$m
$m
Profit before tax 398 279
Theoretical tax expense at UK rate: 25% (2023: 23.5%) 100 66
Effect of:
Overseas tax rates different to UK (2) (4)
Adjustments to tax charge in respect of previous years 1 (2)
Recognition of US deferred tax assets (1) (19)
Recognition of other deferred tax assets (6) -
State taxes 3 -
Pillar 2 top-up taxes 1 -
Other 4 4
Tax expense 100 45
The tax expense for the year comprises the following:
2024 2023
$m
$m
Current tax
UK corporation tax on profits 76 56
Foreign tax 16 14
Adjustments to tax charge in respect of previous years (2) (5)
Current tax expense 90 65
Deferred tax
Origination and reversal of temporary differences 7 (23)
Adjustments to tax charge in respect of previous years 3 3
Deferred tax expense/(credit) 10 (20)
Total tax expense 100 45
The effective tax rate in the year was 25% (2023: 16%).
Factors affecting our future tax charges
The principal factors which may influence our future tax rate are changes in
tax legislation in the territories in which we operate, the mix of income and
expenses earned and incurred by jurisdiction, and the consumption of available
deferred tax assets.
Man Group became subject to the global minimum top-up tax under Pillar 2
legislation from 1 January 2024 and may be liable for additional taxes in
certain jurisdictions in which we operate, notably Ireland, the US and
Switzerland. No material Pillar 2 current tax expense has been recognised in
the year ended 31 December 2024. We continue to assess the impact of the
Pillar 2 legislation on our future financial performance but do not expect
this to become material.
We have applied the temporary exception from the accounting requirements for
deferred taxes in IAS 12 'Income Taxes'. Accordingly, Man Group neither
recognises nor discloses information about deferred tax assets and liabilities
related to Pillar 2 income taxes.
11.2 Current tax assets and liabilities
The movements in our net current tax assets/liabilities are as follows:
2024 2023
$m
$m
Net current tax asset/(liability) at beginning of the year 12 (37)
Charge to the consolidated income statement (90) (65)
Credit to equity 3 5
Tax paid 83 100
Other balance sheet movements 7 6
Foreign currency translation (1) 3
Net current tax asset at end of the year 14 12
11.3 Deferred tax assets and liabilities
The movements in our net deferred tax assets and liabilities by category are
as follows:
$m Deferred compensation Tax allowances over/(below) depreciation Intangibles Accumulated operating losses Partnerships Other Total
At 1 January 2023 51 10 12 23 - 9 105
Credit to consolidated income statement 3 (8) 1 23 - 1 20
Credit to other comprehensive income and equity 3 - - - - - 3
At 31 December 2023 57 2 13 46 - 10 128
Charge to consolidated income statement 12 (4) (1) (21) 2 2 (10)
Charge to other comprehensive income and equity (1) - - - - - (1)
At 31 December 2024 68 (2) 12 25 2 12 117
The gross amounts for which deferred tax assets have not been recognised are
as follows:
2024 2023
$m
$m
United States 24 43
Switzerland 19 64
United Kingdom - 12
Hong Kong 4 4
China 1 1
Total 48 124
Of the total $48 million unrecognised available gross deferred tax assets, $19
million will expire between 2027 and 2029, $24 million will expire by 2038 and
$5 million have no expiry.
US deferred tax assets
We have recognised accumulated deferred tax assets in the US of $76 million
(2023: $86 million) that will be available to offset future taxable profits.
At 31 December 2024, deferred tax assets relating to $2 million of the
available US state and city tax losses (2023: $3 million) are unrecognised as
we do not expect to realise sufficient future taxable profits against which
these losses can be offset before they expire in 2038. We have now utilised
substantially all of our federal tax losses and therefore expect to pay tax on
any profits we may generate in the US in the future.
US net deferred tax assets 2024 2023
$m
$m
Recognised
At beginning of the year 86 64
Credit/(charge) to consolidated income statement:
Recognition of available tax assets 1 19
Utilisation (11) -
Other movements - 3
At end of the year 76 86
Unrecognised
At beginning of the year 3 18
Recognition of available tax assets (1) (19)
Other movements - 4
At end of the year 2 3
12. Earnings per share (EPS)
Movements in the number of ordinary shares in issue and the shares used to
calculate basic and diluted EPS are provided below.
2024 2023
Total Weighted Total Weighted
number
average
number
average
Number of shares at beginning of year 1,313,349,959 1,313,349,959 1,350,556,782 1,350,556,782
Cancellation of own shares held in Treasury (39,400,499) (31,003,671) (37,206,823) (30,339,448)
Number of shares at end of the year 1,273,949,460 1,282,346,288 1,313,349,959 1,320,217,334
Shares held in Treasury share reserve (84,044,723) (86,618,732) (110,774,081) (107,401,080)
Man Group plc shares held by Employee Trust (35,203,028) (35,670,938) (35,289,202) (35,073,864)
Basic number of shares 1,154,701,709 1,160,056,618 1,167,286,676 1,177,742,390
Dilutive impact of:
Employee share awards 28,072,378 27,671,674
Employee share options 946,849 1,641,378
Dilutive number of shares 1,189,075,845 1,207,055,442
2024 2023
Statutory profit ($m) 298 234
Basic EPS 25.7¢ 19.9¢
Diluted EPS 25.1¢ 19.4¢
13. Pension
Accounting policy
We operate multiple defined contribution plans in the regions in which we
operate and two (2023: two) material funded defined benefit plans.
Defined contribution plans
We pay contributions to publicly or privately administered pension plans on a
mandatory, contractual or voluntary basis. We have no further payment
obligation once the contributions have been paid. Defined contribution costs
are recognised as pension costs within compensation in the consolidated
income statement when they are due.
Defined benefit plans
A defined benefit plan creates a financial obligation to provide funding to
the pension plan to provide a retired employee with pension benefits usually
dependent on one or more factors such as age, years of service and
compensation. As with the vast majority of similar arrangements, we ultimately
underwrite the risks related to the defined benefit plans. The risks to which
this exposes us include:
· Uncertainty in benefit payments: the value of our liabilities for
post-retirement benefits will ultimately depend on the amount of benefits paid
out. This in turn will depend on the level of inflation (for those benefits
that are subject to some form of inflation protection) and how long
individuals live.
· Volatility in asset values: we are exposed to future movements in
the values of assets held in the plans to meet future benefit payments.
· Uncertainty in cash funding: movements in the values of the
obligations or assets may result in us being required to provide higher levels
of cash.
The two material defined benefit plans operated are the Man Group plc Pension
Fund in the UK (the UK Plan) and the Man Group Pension Plan in Switzerland
(the Swiss Plan).
UK Plan
The UK Plan is operated separately from Man Group and managed by independent
trustees. The trustees are responsible for payment of the benefits and
management of the UK Plan's assets. Under UK regulations, Man Group and the
trustees of the UK Plan are required to agree a funding strategy and
contribution schedule for the UK Plan. We have concluded that we have no
requirement to adjust the balance sheet to recognise either a current surplus
or a minimum funding requirement on the basis that we have an unconditional
right to a refund of a current or projected future surplus at some point in
the future.
The UK Plan was closed to new members in May 1999, to future accrual in May
2011 and has no active members.
Swiss Plan
In Switzerland, we operate a retirement foundation whose assets are held
separately from Man Group. This foundation covers the majority of employees in
Switzerland and provides benefits on a cash balance basis. Each employee has a
retirement account to which the employee and Man Group make contributions at
rates set out in the plan rules based on a percentage of salary. Every year
the pension fund commission (composed of employer and employee
representatives) decides the level of interest, if any, to apply to retirement
accounts based on their agreed policy. At retirement, an employee can take
their retirement account as a lump sum or have this paid as a pension.
As the Swiss Plan is essentially a defined contribution plan with guarantees,
the assets held aim to be at least as much as the total of the member account
balances at any point in time. Member account balances cannot reduce, but
interest is only applied to the account balances when sufficient surplus
assets are available. As such, there is no specific asset/liability matching
strategy in place, but if the liabilities (the sum of the member account
balances) ever exceed the value of the assets, we will consider how to remove
a deficit as quickly as possible. The Swiss Plan surplus is restricted by the
value of the employer contribution reserve, which provides the asset ceiling
on amounts available to Man Group.
Defined contribution plans
Defined contribution plan costs totalled $17 million for the year to 31
December 2024 (2023: $14 million).
Defined benefit plans
At 31 December 2024, the UK Plan comprised 88% (31 December 2023: 89%) of our
total defined benefit pension obligations.
2024 2023
$m
$m
Present value of funded obligations (259) (292)
Fair value of plan assets 272 304
Net pension asset 13 12
Impact on the consolidated financial statements
Changes in the present value of the defined benefit obligations and the fair
value of the plan assets are as follows:
$m 2024 2023
Assets Liabilities Net pension asset/ (liability) Assets Liabilities Net pension asset/
(liability)
At beginning of the year 304 (292) 12 294 (272) 22
Amounts recognised in profit and loss:
Current service cost to employer - (1) (1) - (1) (1)
Interest income/(cost) 12 (12) - 13 (12) 1
Past service cost - - - - (1) (1)
Running costs (1) - (1) (1) - (1)
Amounts recognised in other comprehensive income:
Remeasurements due to:
- changes in financial assumptions - 23 23 - (9) (9)
- changes in demographic assumptions - 2 2 - 4 4
- experience adjustments - - - - (2) (2)
- actual return on plan assets less interest (23) - (23) (3) - (3)
on plan assets
Employer contributions (including plan funding) 1 - 1 1 - 1
Employee contributions 1 (1) - 1 (1) -
Foreign currency translation (7) 7 - 17 (16) 1
Benefit payments (15) 15 - (18) 18 -
At end of the year 272 (259) 13 304 (292) 12
No contributions were paid to the UK Plan in 2024 (2023: none).
Actuarial assumptions used
The most significant actuarial assumptions used in the valuations of the two
plans are as follows:
UK Plan Swiss Plan
2024 2023 2024 2023
% p.a.
% p.a.
% p.a.
% p.a.
Discount rate 5.5 4.5 1.1 1.5
Price inflation 3.2 3.1 1.0 1.2
Future salary increases - - 1.0 1.2
Pension payment increases 3.7 3.7 - -
Deferred pensions increases 5.0 5.0 - -
Interest crediting rate - - 1.3 1.5
Social security increases - - 1.0 1.0
Illustrative life expectancy assumptions are set out in the table below.
UK Plan Swiss Plan
Years 2024 2023 2024 2023
Life expectancy of male aged 60 at year-end 26.5 26.5 27.9 27.8
Life expectancy of male aged 60 in 20 years 28.0 28.0 30.3 30.2
Life expectancy of female aged 60 at year-end 29.4 29.3 29.8 29.7
Life expectancy of female aged 60 in 20 years 30.8 30.7 31.8 31.7
The duration of a pension plan is the average term over which the plan's
benefits are expected to fall due, weighted by the present value of each
expected benefit payment. The duration of the UK Plan is approximately 11
years, and the duration of the Swiss Plan is approximately 16 years.
Sensitivity analysis
The table below illustrates the impact on the assessed value of the benefit
obligations from changing the most sensitive actuarial assumptions in
isolation. The calculations have been carried out using the same method and
data as our pension figures. A combination of changes in assumptions could
produce a different result.
Increase in obligation at 31 December 2024 Increase in obligation at 31 December 2023
$m UK Plan Swiss Plan UK Plan Swiss Plan
Discount rate decreased by 0.5% p.a. 13 3 16 3
Inflation rate increased by 0.5% p.a. 4 - 5 -
One-year increase in assumed life expectancy 8 - 10 -
Pension asset investments
The assets held by the two plans at 31 December 2024 are as follows:
UK Plan Swiss Plan
$m 2024 2023 2024 2023
Bonds 92 52 15 13
Liability-driven investments (LDI) 43 83 - -
Fund investments 43 82 3 3
Index-linked government bonds 29 33 - -
Equities - - 10 11
Property - - 2 2
Cash 33 23 2 1
Other - - - 1
Total assets 240 273 32 31
The UK Plan investment strategy is set by the trustees. The current strategy
is broadly split into growth and matching portfolios, with the growth
portfolio invested in Man Diversified Risk Premia. The matching portfolio is
invested primarily in government and corporate bonds (the latter through
absolute return bonds and buy and maintain credit holdings), and LDI funds.
The UK Plan investment strategy hedges around 100% of the movement in the
'technical provisions' funding measure (as opposed to the accounting measure
under IAS 19 'Employee Benefits') for both interest rate and inflation
expectation changes.
Part of the investment objective of the UK Plan is to minimise fluctuations in
the UK Plan's funding levels due to changes in the value of the liabilities.
This is primarily achieved using the LDI funds, which aim to hedge movements
in the pension liability due to changes in interest rate and inflation
expectations. LDI primarily involves the use of government bonds (including
repurchase agreements) and derivatives such as interest rate and inflation
swaps. There are no annuities or longevity swaps. These instruments are
typically priced and collateralised daily by the UK Plan's LDI manager and/or
central clearing houses. Given that the purpose of LDI is to hedge
corresponding liability exposures, the main risk is that the investments held
move differently to the liability exposures. This risk is managed by the
trustees, their advisers and the UK Plan's LDI manager, who regularly assess
the position.
A rise in nominal and real gilt yields over the year to 31 December 2024 saw
some significant movements in the UK Plan's hedging assets. There was limited
impact on the UK Plan other than a fall in the value of the LDI funds due to
the high level of hedging. The UK Plan's investments were rebalanced
regularly, and the target hedging level of 100% of interest rates and
inflation was preserved throughout the period, with the funding level
volatility relatively muted as a result. At 31 December 2024, the UK Plan's
hedging assets continued to hedge around 100% of interest rates and inflation
on the technical provisions basis (2023: 100%). The level of leverage utilised
was in line with regulatory requirements. The UK Plan maintains a collateral
waterfall and has additional sources of short-term cash from the trustee bank
account, and access to daily-dealing funds should further collateral calls be
made.
The government bond and buy and maintain corporate bond assets have prices
quoted in active markets and the absolute return bonds, LDI and Man
Diversified Risk Premia are primarily unquoted. At 31 December 2024, around
28% of the UK Plan assets relate to those with quoted prices and 72% with
unquoted prices (2023: around 28% quoted and 72% unquoted). The UK Plan does
not invest directly in property occupied by Man Group or our shares.
14. Cash, liquidity and borrowings
Accounting policy
Cash and cash equivalents
Cash and cash equivalents comprise cash and short-term investments in money
market funds or bank deposits with an original maturity of three months or
less. Cash and cash equivalents are measured at amortised cost, which is
approximately equal to fair value. Cash and cash equivalents include
restricted balances held by consolidated fund entities to which we do not have
access, and which are subject to legal or contractual restrictions as to their
use.
Borrowings
Borrowings comprise amounts drawn under committed revolving credit facilities.
Borrowings are initially recorded at fair value and subsequently measured at
amortised cost. Drawdowns under revolving credit facilities are typically for
maturities of one month or less and are therefore presented net of repayments
in the consolidated cash flow statement.
2024 2023
$m
$m
Cash held with banks 162 92
Short-term deposits 24 46
Money market funds 39 42
Cash held by consolidated fund entities (Note 5.2) 229 96
Cash and cash equivalents 454 276
Less: cash held by consolidated fund entities (Note 5.2) (229) (96)
Available cash and cash equivalents 225 180
Undrawn committed revolving credit facility(1) 800 660
Total liquidity 1,025 840
Note:
1 Excludes the $300 million facility acquired in 2023. This facility was
undrawn at 31 December 2023 and cancelled in January 2024.
Borrowings
Our $800 million committed revolving credit facility (RCF) was put in place in
December 2023 as a five-year facility. As the first of two one-year extension
options was exercised in the year, the facility is currently scheduled to
mature in December 2029. The RCF was undrawn at 31 December 2024 (2023: $140
million drawn down).
15. Fee and other receivables
Accounting policy
Fee and other receivables are initially recorded at fair value and
subsequently measured at amortised cost using the effective interest rate
method, except for derivatives (measured at fair value through profit and
loss) and prepayments. Fee receivables and accrued income relate to management
and performance fees and are received in cash following finalisation of the
NAVs of the underlying funds or managed accounts.
2024 2023
$m
$m
Financial assets at amortised cost
Fee receivables 26 25
Accrued income 258 274
Collateral posted with derivative counterparties 47 48
Receivables from Open Ended Investment Company (OEIC) funds 46 39
Other fund receivables 28 29
Other receivables 48 20
Receivables relating to consolidated fund entities (Note 5.2) 6 88
459 523
Financial assets at fair value through profit or loss
Derivatives 5 5
5 5
Non-financial assets
Prepayments 28 23
28 23
Total fee and other receivables 492 551
Included in fee and other receivables at 31 December 2024 are balances of $2
million (2023: $2 million) which are expected to be settled after more than
12 months.
16. Leasehold improvements and equipment
Accounting policy
All leasehold improvements and equipment are recorded at cost less
depreciation and impairment. Cost includes the original purchase price of the
asset and costs directly attributable to bringing the asset to its working
condition for its intended use. Depreciation is calculated using
the straight-line method over the asset's estimated useful life, which for
leasehold improvements is the shorter of the life of the lease and that
of the improvement (up to 24 years) and for equipment is between three and
ten years.
2024 2023
$m Leasehold improvements Equipment Total Leasehold improvements Equipment Total
Cost at beginning of the year 73 67 140 70 61 131
Acquired through business combinations - - - - 1 1
Additions 3 15 18 4 8 12
Disposals (5) (6) (11) (1) (3) (4)
Cost at end of the year 71 76 147 73 67 140
Accumulated depreciation and impairment at (39) (48) (87) (36) (42) (78)
beginning of the year
Disposals 3 6 9 - 3 3
Depreciation (3) (8) (11) (3) (9) (12)
Accumulated depreciation and impairment at (39) (50) (89) (39) (48) (87)
end of the year
Net book value at beginning of the year 34 19 53 34 19 53
Net book value at end of the year 32 26 58 34 19 53
17. Software intangible assets
Accounting policy
Following initial recognition, software intangible assets are held at cost
less accumulated amortisation and impairment. Cost includes costs that are
directly associated with the procurement or development of identifiable and
unique software products which will generate economic benefits exceeding costs
beyond one year. Capitalised software intangible assets are amortised on a
straight-line basis over their estimated useful lives (three years), with
amortisation expense included within other costs in the consolidated income
statement. Software intangible assets are reviewed for impairment whenever
events or changes in circumstances indicate that the carrying amount may not
be recoverable. Additions primarily relate to the continued investment in our
operating platforms.
2024 2023
$m
$m
Cost at beginning of the year 172 148
Acquired through business combinations - 1
Additions 28 25
Disposals (8) (2)
Cost at end of the year 192 172
Accumulated amortisation at beginning of the year (118) (98)
Amortisation (25) (22)
Disposals 8 2
Accumulated amortisation at end of the year (135) (118)
Net book value at beginning of the year 54 50
Net book value at end of the year 57 54
18. Trade and other payables
Accounting policy
Trade and other payables are initially recorded at fair value, which is
usually the invoiced amount, and subsequently measured at amortised cost using
the effective interest rate method, except for derivatives, contingent
consideration payable and put options over non-controlling interests
in subsidiaries, which are measured at fair value through profit and loss.
2024 2023
$m
$m
Financial liabilities at amortised cost
Trade payables 5 7
Compensation accruals 426 365
Other accruals 101 79
Payables to OEIC funds 45 39
Payables under repo arrangements 16 45
Tax and social security 16 31
Other payables 6 7
Payables relating to consolidated fund entities (Note 5.2) 20 116
635 689
Financial liabilities at fair value through profit or loss
Derivatives 6 12
Contingent consideration 4 3
Put options over non-controlling interests in subsidiaries 10 9
20 24
Total trade and other payables 655 713
19. Provisions
Accounting policy
Provisions are recognised when Man Group has a present obligation (legal or
constructive) as a result of a past event, it is probable that we will be
required to settle the obligation, and a reliable estimate can be made of the
amount of the obligation. All provisions are current given we do not have the
unconditional right to defer settlement.
2024 2023
$m
$m
At beginning of the year 16 14
Additions 1 1
Unused amounts reversed (1) -
Foreign currency translation - 1
At end of the year 16 16
Provisions relate to ongoing claims and leasehold property dilapidations.
20. Equity
Accounting policy
Incremental costs directly attributable to the issue of new ordinary shares
are shown in equity as a deduction from the proceeds, net of tax.
Share repurchases are recognised at the point we become committed to
completing them. A liability is recognised for the full amount of the
commitment, including directly attributable costs, with a corresponding debit
to equity. Where repurchased shares are held in Treasury, a transfer from the
profit and loss reserve to the Treasury share reserve is recognised for the
full amount of the consideration paid. Where shares are repurchased and
subsequently cancelled, the equivalent par value by which the Company's share
capital is reduced is transferred to the capital redemption reserve.
The Employee Trust, which is consolidated into Man Group, has the obligation
to deliver deferred share-based and fund product-based compensation granted to
employees, and accordingly holds shares and fund investments to deliver
against these future obligations. Man Group plc shares held by the Employee
Trust and shares held in Treasury are recorded at cost, including any directly
attributable incremental costs (net of tax), and are deducted from equity
(within the respective reserves) until the shares are sold, cancelled or
transferred to employees. Where such shares are subsequently sold, any
consideration received, net of any directly attributable incremental
transaction costs and the related tax effects, is included in equity.
Share capital
The authorised share capital of Man Group plc comprises $100 million divided
into 2,916,666,666 ordinary shares with a par value of 3(3/7)¢ each. Ordinary
shares represent 100% of issued share capital and all issued shares are fully
paid. The shares have attached to them full voting, dividend and capital
distribution (including on wind up) rights. They do not confer any rights of
redemption. Shareholders have the right to receive notice of, attend, vote and
speak at general meetings. When a vote is taken on a poll, shareholders are
entitled to one vote per ordinary share. When a vote is taken by a show of
hands, shareholders present in person or by proxy have one vote.
Treasury shares are ordinary shares previously repurchased by the Company but
not cancelled, and are therefore deducted from equity and included within the
Treasury share reserve. As they are no longer outstanding, they are excluded
for earnings per share and voting rights purposes.
Movements in the number of ordinary shares in issue are set out below.
2024 2023
Total Nominal Total Nominal
number
value
number
value
$m
$m
Number of shares at beginning of year 1,313,349,959 45 1,350,556,782 46
Cancellation of own shares held in Treasury (39,400,499) (1) (37,206,823) (1)
Number of shares at end of the year 1,273,949,460 44 1,313,349,959 45
Share buybacks 2024 2023
Shares repurchased during the year (including costs) ($m) 50 223
Average purchase price (pence) 248.8 241.2
Shares repurchased (million) 16 76
Accretive impact on diluted earnings per share (%) 0.7 5.2
The $50 million share repurchase programme announced in February 2024 was
completed during the year (2023: $125 million of announced share repurchases).
The purpose of the share repurchase was to deliver returns to shareholders.
All repurchased shares were held in Treasury.
Shares repurchased during the year represent 1.3% of issued share capital
(excluding Treasury shares) as at 31 December 2024 and shares held in Treasury
which were cancelled during the year represent 3.3% of issued share capital
(excluding Treasury shares). At 26 February 2025, we had an unexpired
authority to repurchase up to 109,827,230 of our ordinary shares. A special
resolution will be proposed at the forthcoming Annual General Meeting,
pursuant to which the Company will seek authority to repurchase up to
118,997,191 ordinary shares, representing 10% of the issued share capital
(excluding Treasury shares) at 26 February 2025.
The Employee Trust
At 31 December 2024, the Employee Trust held 35,203,028 Man Group plc ordinary
shares (2023: 35,289,202).
In 2024, we funded $65 million via contribution or loan (2023: $99 million) to
enable the Employee Trust to meet its current period obligations.
At 31 December 2024, the net assets of the Employee Trust amounted to $202
million (2023: $196 million). These assets include 35,203,028
(2023: 35,289,202) ordinary shares in the Company, and $87 million of fund
product investments (2023: $88 million) which are included within investments
in fund products.
The Employee Trust waived all dividend entitlements of the shares held in the
current and prior year.
Reorganisation reserve
The reorganisation reserve of $1,688 million arose on Man Group's corporate
reorganisation in 2019. The difference between the share capital and share
premium issued by the new holding company and the share capital, premium and
capital reserves of the former holding company were taken to the
reorganisation reserve.
Other reserves
Other reserves at 31 December 2024 of $22 million (2023: $21 million) comprise
share premium, capital redemption reserves and cash flow hedge reserves.
21. Reconciliation of statutory profit to cash generated from operations
Accounting policy
Cash flows arising from the purchase and sale of investments in fund products
and other investments, and from transactions with third-party investors in
consolidated fund entities, are included in cash flows from operating
activities in the consolidated cash flow statement. This classification
reflects the fact that these investments are to build product breadth and to
trial investment research before marketing the products broadly to investors
as part of Man Group's ordinary operations or are otherwise held in connection
with settling employee remuneration and are not intended to be held as
long-term investments.
Note 2024 2023
$m
$m
Cash flows from operating activities
Statutory profit 298 234
Adjustments for:
Share-based payment charge 6.1 39 40
Fund product-based payment charge 6.1 81 83
Other employment-related expenses 6.2 28 23
Net finance expense 7 23 21
Tax expense 11.1 100 45
Depreciation of leasehold improvements and equipment 16 11 12
Depreciation of right-of-use lease assets 8.2 15 14
Gain on disposal of investment property - right-of-use lease assets 8.1 (3) (12)
Amortisation and impairment of acquired intangibles 9 24 28
Amortisation of software intangible assets 17 25 22
Share of post-tax loss of associates 10 2 3
Revaluation of acquisition-related liabilities 4 -
Realised gains on cash flow hedges (22) (12)
Foreign exchange movements 8 3
Other non-cash movements (10) (9)
623 495
Changes in working capital(1):
(Increase)/decrease in fee and other receivables (29) 104
Decrease in other financial assets including consolidated fund entities(2) 211 71
Decrease in trade and other payables (36) (200)
Cash generated from operations 769 470
Notes:
1 Changes in working capital differ from the movements in these balance
sheet items due to non-cash movements which either relate to the gross-up of
the third-party share of consolidated fund entities (Note 5.2) or are adjusted
elsewhere in the consolidated cash flow statement, such as movements relating
to the fund product-based payment charge and other employment-related expenses
(within operating activities) and the share repurchase liability (within
financing activities).
2 Includes $133 million of restricted net cash inflows (2023: $12
million net cash outflows) relating to consolidated fund entities (Note 5.2).
22. Dividends
Accounting policy
Dividend distributions to the Company's shareholders are recognised directly
within equity in the period in which the dividend is paid or, for final
dividends, approved by the Company's shareholders. Dividends are payable on
the Company's ordinary shares.
¢/share 2024 ¢/share 2023
$m
$m
Final dividend paid for the previous financial year to 31 December 10.7 127 10.1 118
Interim dividend paid for the six months to 30 June 5.6 65 5.6 63
Dividends paid 192 181
Proposed final dividend for the financial year to 31 December 11.6 134 10.7 125
23. Financial assets and liabilities
Accounting policy
Classification and measurement
Financial assets and liabilities are initially recognised at fair value. We
subsequently measure each financial asset and liability at fair value through
profit or loss (FVTPL) or amortised cost, with classification determined at
the time of initial recognition.
Derivatives
We use derivative financial instruments to manage market risk in certain
circumstances. These consist primarily of market risk hedges on some of our
seeding positions and foreign exchange contracts. The carrying value of these
derivatives are included in fee and other receivables and trade and other
payables.
Fair value hierarchy
We disclose the fair value measurement of financial assets and liabilities
using three levels, as follows:
Level 1: quoted prices (unadjusted) in active markets for identical assets or
liabilities.
Level 2: inputs, other than quoted prices included within Level 1, that are
observable for the asset or liability, either directly (i.e. as prices)
or indirectly (i.e. derived from prices).
Level 3: inputs for the asset or liability that are not based on observable
market data (unobservable inputs).
The majority of our investments in fund products fall within Level 2 due to
observability of the relevant valuation inputs reflecting the liquidity of the
underlying investments and the level of subscription and redemption activity.
Level 2 investments in fund products primarily comprise holdings in unlisted,
open-ended, active and liquid funds, which are priced using daily or weekly
observable market information derived from third-party sources. A lack of
liquidity in the underlying investments, a lack of observability in the
relevant valuation inputs or a low level of subscription and redemption
activity is typically associated with a Level 3 classification.
The assets held by our consolidated CLOs comprise a portfolio of bonds and
loan securities. Loans are valued using broker quotes sourced from an
independent pricing service, with bonds priced using latest prices executed
for similar assets. We do not make any adjustments to the quotes obtained.
Where the quotes are obtained from multiple pricing sources within a narrow
range, the assets are classified as Level 2 in the fair value hierarchy. Where
prices are derived from a small number of quotes, or where there is a wide
bid-ask spread between quotes, we classify these assets as Level 3.
Transferable securities held by our other consolidated funds which are
classified as Level 3 have significant unobservable inputs, as they trade
infrequently or not at all. When observable prices are not available for these
securities, we use valuation techniques for which sufficient and reliable data
is available. Level 3 investments may also be adjusted to reflect illiquidity
and/or non-transferability.
The fair values of our financial assets and liabilities can be analysed as
follows:
2024
$m Note Level 1 Level 2 Level 3 Not at fair value Total
Financial assets at amortised cost
Finance lease receivable 8.1 - - - 77 77
Cash and cash equivalents 14 - - - 454 454
Fee and other receivables 15 - - - 459 459
- - - 990 990
Financial assets at fair value
Fee and other receivables 15 - 5 - - 5
Investments in fund products and other investments 5 - 216 16 - 232
Investments in loans 5 - - 27 - 27
Investments in consolidated funds: CLO assets 5.2 - 1,242 211 - 1,453
Investments in consolidated funds: other transferable securities 5.2 286 379 37 - 702
286 1,842 291 - 2,419
Total financial assets 286 1,842 291 990 3,409
Financial liabilities at amortised cost
Trade and other payables 18 - - - (635) (635)
Lease liability 8.2 - - - (248) (248)
- - - (883) (883)
Financial liabilities at fair value
Trade and other payables 18 - (6) (14) - (20)
CLO liabilities - consolidated funds 5.2 - (1,366) - - (1,366)
Third-party interest in consolidated funds 5.2 - (553) - - (553)
- (1,925) (14) - (1,939)
Total financial liabilities - (1,925) (14) (883) (2,822)
2023
$m Note Level 1 Level 2 Level 3 Not at fair value Total
Financial assets at amortised cost
Finance lease receivable 8.1 - - - 67 67
Cash and cash equivalents 14 - - - 276 276
Fee and other receivables 15 - - - 523 523
- - - 866 866
Financial assets at fair value
Fee and other receivables 15 - 5 - - 5
Investments in fund products and other investments 5 - 280 12 - 292
Investments in consolidated funds: CLO assets 5.2 - 1,057 46 - 1,103
Investments in consolidated funds: other transferable securities 5.2 274 510 100 - 884
274 1,852 158 - 2,284
Total financial assets 274 1,852 158 866 3,150
Financial liabilities at amortised cost
Trade and other payables 18 - - - (689) (689)
Lease liability 8.2 - - - (283) (283)
- - - (972) (972)
Financial liabilities at fair value
Trade and other payables 18 - (12) (12) - (24)
CLO liabilities - consolidated funds 5.2 - (1,036) - - (1,036)
Third-party interest in consolidated funds 5.2 - (554) - - (554)
- (1,602) (12) - (1,614)
Total financial liabilities - (1,602) (12) (972) (2,586)
The movements in Level 3 financial assets and liabilities held at fair value
are as follows:
2024 2023
$m Assets Liabilities Assets Liabilities
At beginning of the year 158 (12) 20 -
Transfers into/(out of) Level 3 3 - (11) -
Purchases 166 - 2 (12)
(Charge)/credit to consolidated income statement(1,2) (1) (2) 1 -
Sales or settlements (137) - - -
Change in consolidated fund entities held 102 - 146 -
At end of the year 291 (14) 158 (12)
Notes:
1 Included within net income or gains on investments and other financial
instruments.
2 Includes net unrealised losses of $3 million (2023: gains of $1
million) and foreign exchange movements.
The Level 3 financial assets in the portfolios of our consolidated fund
entities other than CLOs primarily comprise bonds, equities and credit-linked
notes. The techniques used the valuations of those assets primarily include
discounted cash flows, estimated recovery and single broker quotes. The
unobservable inputs in those valuations comprise future cash flows, discount
rates and yields.
Level 3 financial liabilities held at fair value comprise contingent
consideration payable and put options over non-controlling interests.
The contingent consideration payable for the acquisition of Asteria in 2023
is based on future levels of management fees and is capped at $53 million.
Put options are measured at the present value of the expected redemption
amount.
Sensitivity analysis
A 5% increase/decrease in the valuations of Level 3 financial assets at 31
December 2024 would result in a $15 million increase/decrease in their fair
value.
Changes in the unobservable inputs to the valuation of Level 3 financial
liabilities would not be expected to result in a significant change in the
carrying value of these assets and liabilities, and hence a sensitivity
analysis has not been presented.
24. Financial risk management
We are exposed to a variety of financial risks: market risk, liquidity risk
and credit risk. Man Group's risk management framework and internal control
systems seek to manage these financial risks, with derivative financial
instruments used to hedge certain risk exposures.
Further details of our approach to the management and mitigation of financial
risk are included on pages 18 to 23.
24.1 Market risk
Investment book performance risk
Investments in fund products expose us to market risk and are therefore
managed within limits consistent with the Board's risk appetite. In certain
circumstances, we use derivative financial instruments, specifically equity
swaps, to hedge the risk associated with mark-to-market movements.
Market risk hedges
2024 2023
$m
$m
Notional value of derivatives at 31 December
Assets 104 -
Liabilities (12) (175)
Net assets/(liabilities) 92 (175)
For the year ended 31 December
Loss recognised in the consolidated income statement (2) (17)
The market risk from seeding investments, including those financed via repo
and TRS arrangements, is modelled using a value at risk methodology with a 95%
confidence interval and one-year time horizon. The value at risk, net of
market risk hedges, is estimated to be $67 million at 31 December 2024 (2023:
$61 million).
We generally hold an investment in the associated fund products to hedge the
mark-to-market movement in fund product-based compensation over the vesting
period.
Our maximum exposure to loss associated with interests in our consolidated
CLOs is limited to the net investment in these CLOs.
Foreign currency risk
We are subject to risk from changes in foreign exchange rates on monetary
assets and liabilities. In certain circumstances, we use derivative financial
instruments, specifically forward foreign exchange contracts with a one-month
duration, to hedge the risk associated with foreign exchange movements.
Foreign exchange hedges
2024 2023
$m
$m
Notional value of derivatives at 31 December
Assets 264 124
Liabilities (152) (343)
Net assets/(liabilities) 112 (219)
For the year ended 31 December
Loss before the impact of hedging (5) (4)
Gain/(loss) on hedging instruments 11 (7)
Gain/(loss) recognised in the consolidated income statement after the impact 6 (11)
of hedging
Of the $6 million of net realised and unrealised foreign exchange gains (2023:
$11 million losses) recognised in the consolidated income statement, $4
million of unrealised gain (2023: $10 million of loss) relates to the
revaluation of our $190 million (2023: $209 million) unhedged sterling lease
liability.
The table below reflects the currency profile of our net foreign currency
(non-USD) monetary assets and liabilities after the impact of hedging:
2024 2023
$m
$m
Sterling (112) (138)
Swiss Franc (19) (17)
Euro 4 22
Other 27 26
Total (100) (107)
A 10% strengthening/weakening of the USD against all other currencies, with
all other variables held constant, would have resulted in a foreign exchange
loss/gain of $10 million (2023: $11 million), with a corresponding impact on
equity. This pre-tax exposure is based on non-USD balances held by USD
functional currency entities at 31 December.
Interest rate risk
We are subject to risk from changes in interest rates on monetary assets and
liabilities, principally cash deposits and financing costs. In respect of our
monetary assets and liabilities which earn/incur interest indexed to floating
rates, as at 31 December 2024 a 100 basis point increase/decrease in these
rates, with all other variables held constant, would have resulted in a nil
(2023: $1 million) increase/decrease in net interest expense.
24.2 Credit risk
Credit risk is the risk of financial loss as a result of a counterparty
failing to meet its contractual obligations. This risk is mitigated by the
diversification of exposures across a number of the strongest available
financial counterparties, each of which is approved and regularly reviewed and
challenged for creditworthiness by Man Group's counterparty committee. Our
risk teams monitor credit metrics, including credit default swap spreads and
credit ratings, on a daily basis.
At 31 December 2024, the $225 million available cash and cash equivalents
balance was held with 19 banks (2023: $180 million with 19 banks).
Credit ratings of banks 2024 2023
$m
$m
AAA 39 31
AA 130 67
A 50 82
BB 6 -
Total 225 180
The single largest counterparty bank exposure of $56 million is held with an
AA- rated bank (2023: $50 million held with an A- rated bank).
As in 2023, all derivatives are held with counterparties with ratings of A or
higher and mature within one year. Accordingly, under the expected credit loss
model of IFRS 9 'Financial Instruments', no impairment of the collateral held
with derivative counterparties has been recognised at 31 December 2024 (2023:
nil).
The majority of fees are deducted from the NAVs of the respective funds by the
independent administrators and therefore both the credit risk of fee
receivables and the quantum of overdue balances are minimal. Our exposure to
receivables from the tenants of our investment property which is sub-let under
finance leases is not considered a significant credit risk due to the credit
quality of the lessees. Accordingly, no impairment has been recognised in
respect of these receivables at 31 December 2024 (2023: nil).
The assets held by our consolidated CLOs comprise loans and bonds, cash and
receivables. Our maximum exposure to the credit risk associated with these
assets is limited to the net investment in these CLOs, which at 31 December
2024 was $89 million (2023: $78 million). The creditworthiness of the asset
portfolios is reflected in the fair value of our consolidated CLOs.
24.3 Liquidity risk
Liquidity resources support ongoing operations and potential liquidity
requirements under scenarios that assume stressed market and economic
conditions. Our funding requirements relating to the investment management
process are discretionary. Our liquidity profile is monitored on a daily basis
and the stressed scenarios are updated regularly. The Board reviews our
funding resources at each Board meeting and on an annual basis, as part of
the strategic planning process. Our available liquidity is considered
sufficient to cover current requirements and potential requirements under
stressed scenarios.
At 31 December 2024, we had total liquidity of $1,025 million (2023: $840
million) comprising $225 million (2023: $180 million) of available cash and
cash equivalents and $800 million (2023: $660 million) of undrawn committed
revolving credit facility (RCF).
Available cash and cash equivalents are invested in accordance with strict
limits consistent with the Board's risk appetite, which consider both the
security and availability of liquidity. Accordingly, cash is held in on-demand
and short-term bank deposits and money market funds, and at times invested in
short-term US Treasury bills (which meet the definition of cash equivalents).
Our $800 million committed RCF is immediately accessible and does not include
financial covenants to maintain maximum flexibility. The RCF is currently
scheduled to mature in December 2029.
Our maximum exposure to loss associated with interests in our consolidated
CLOs is limited to the net investment in these CLOs (Note 5.2). Therefore, the
CLO liabilities on the consolidated balance sheet of $1,366 million (2023:
$1,036 million) do not present a liquidity risk to Man Group as we have
no obligation to repay the noteholders at maturity should the CLO assets be
insufficient to meet the obligations.
Maturity analysis
Trade and other payables can be analysed according to their contractual
maturity dates on an undiscounted cash flow basis as follows:
2024 2023
$m
$m
Within one year 600 656
Between one and three years 41 45
After three years 20 18
661 719
A maturity analysis of our undiscounted lease liabilities is set out in Note
8.2.
24.4 Capital management
Man Group has a clear, disciplined capital management framework, actively
managing its capital to maximise value to shareholders by either investing
that capital to improve shareholder returns in the future or by returning it
through higher dividends or share repurchases. We periodically review our
accumulated capital reserves to determine whether they exceed the amounts
required to retain to ensure financial stability and to provide an appropriate
level of security to our stakeholders.
The key decision-making areas relating to the deployment and maintenance of
capital, including material acquisitions and disposals, share repurchases,
capital structure and dividend policy, are matters reserved for the Board.
25. Share-based payment schemes
Accounting policy
Equity-settled share-based payments
Man Group operates equity-settled share-based payment schemes which are
remuneration payments to selected employees that take the form of an award of
shares in the Company. These typically vest over three to five years, although
conditions vary between different types of award. The fair value of the
employee services received in exchange for the share awards/options granted is
recognised as an expense, with the corresponding credit recognised in equity,
and is determined by reference to the fair value of the share awards/options
at grant date.
We calculate the fair value of share options using the Black-Scholes valuation
model, which takes into account the effect of both financial and demographic
assumptions. Forfeiture and early vesting assumptions are based on historical
observable data. Changes to the original estimates, if any, are included in
the consolidated income statement, with a corresponding adjustment to equity.
Cash-settled share-based payments
Put options on the interests in subsidiaries held by employees, and their
proportionate share of the profits of those subsidiaries, which can be
forfeited should they become 'bad leavers' are accounted for as cash-settled
share-based payments. Cash-settled share-based payments are measured at fair
value on grant date and recognised as an employment-related expense in the
consolidated income statement over the relevant service period. They are
remeasured to fair value at each reporting date, with the change in fair value
recognised as other employment-related expenses in the consolidated income
statement. The credit entry is recognised as a liability in the consolidated
balance sheet.
Share awards
The fair values of equity-settled share awards granted in the year and the
assumptions used in the calculations are as follows:
Deferred share plan Executive directors' long-term incentive plan
Grant dates 08/03/2024 -10/12/2024 28/02/2023 - 02/08/2023 08/03/2024 10/03/2023 - 04/09/2023
Share awards granted in the year 12,128,097 19,200,689 1,674,203 2,784,001
Weighted average fair value per share award granted ($) 3.2 3.4 3.2 3.1
Movements in the number of equity-settled share awards outstanding are as
follows:
2024 2023
Share awards outstanding at beginning of the year 42,317,900 41,252,837
Granted 13,802,300 21,984,690
Forfeited (2,899,848) (2,214,057)
Exercised (11,490,358) (18,705,570)
Share awards outstanding at end of the year 41,729,994 42,317,900
Share awards exercisable at end of the year 158,944 137,769
Share options
The fair values of share options granted in the year under the Sharesave
employee share option scheme, and the assumptions used in the calculations,
are as follows:
2024 2023
Grant date 03/09/2024 11/09/2023
Weighted average share price at grant date ($)(1) 2.9 2.6
Weighted average exercise price at grant date ($)(2) 2.3 2.1
Share options granted in the period 1,447,200 2,843,261
Vesting period (years) 3-5 3-5
Expected share price volatility (%) 30 30
Dividend yield (%) 5 5
Risk-free rate (%) 3.9 4.7
Expected option life (years) 3.7 3.4
Number of options assumed to vest 1,080,188 2,172,378
Average fair value per option granted ($) 0.7 0.6
Notes:
1 Sterling share price at grant date each year of £2.19 and £2.06
respectively.
2 Sterling exercise price each year of £1.76 and £1.69 respectively.
The expected share price volatility is based on historical volatility over the
past five years. The expected option life is the average expected period
to exercise. The risk-free rate of return is the yield on zero-coupon UK
government bonds of a term consistent with the assumed option life.
Movements in the number of share options outstanding are as follows:
2024 2023
Number Weighted average Number Weighted average
exercise price(1) exercise price(1)
($ per share) ($ per share)
Share options outstanding at beginning of the year 5,139,138 2.1 5,976,777 1.7
Granted 1,447,200 2.2 2,843,261 2.2
Forfeited (476,292) 2.2 (691,948) 2.3
Exercised(2) (799,406) 1.8 (2,988,952) 1.4
Share options outstanding at end of the year 5,310,640 2.1 5,139,138 2.1
Share options exercisable at end of the year 239,978 2.1 361,340 1.5
Notes:
1 Calculated at 31 December exchange rates each year.
2 The sterling weighted average share price of options exercised was
£2.38 (2023: £2.24) (USD-equivalent $3.06 and $2.73 respectively).
The share options outstanding at year-end had expected remaining lives as
follows:
Range of exercise prices ($ per share) 2024 2023
Number of share options Weighted average expected remaining life (years) Number of Weighted average expected remaining life (years)
share options
0.00-3.00 5,310,640 2.5 5,139,138 2.7
Cash-settled share-based payments
The carrying value of the cash-settled share-based payment liability at 31
December 2024 was $56 million (2023: $23 million). Details of the associated
expense and a sensitivity analysis to the key assumptions used in the
valuation are set out in Note 6.2.
26. Geographical information
Accounting policy
Disclosure of revenue by geographic location is based on the registered
domicile of the fund entity or managed account paying our fees.
Non-current assets are allocated based on where the assets are located and
include goodwill and acquired intangibles, software intangible assets,
leasehold improvements and equipment, and right-of-use lease assets. For
goodwill and other acquired intangibles, we consider that the location of the
intangibles is best reflected by the location of the individuals managing
those assets.
$m 2024 2023
Revenue Non-current assets Revenue Non-current assets
Cayman Islands 656 - 555 -
Ireland 191 - 198 -
United Kingdom and the Channel Islands 132 604 108 606
United States of America 281 346 193 391
Other countries 174 20 114 15
1,434 970 1,168 1,012
Revenue from no single fund exceeded 10% of total annual revenue in either
2024 or 2023.
27. Related party transactions
Accounting policy
Related parties comprise key management personnel, associates and fund
entities which we are deemed to control. All transactions with related parties
were carried out on an arm's-length basis.
The Executive Committee, together with the Company's non-executive directors,
are considered to be our key management personnel, being those directors,
partners and employees having authority and responsibility for planning,
directing and controlling our activities.
Key management compensation 2024 2023
$m
$m
Salaries and other short-term employee benefits(1) 23 31
Share-based payment charge 14 19
Fund product-based payment charge 15 22
Pension costs (defined contribution) 1 1
Total 53 73
Note:
1 Includes salary, benefits and cash bonus.
Man Group paid consortium relief to its associate HUB in the current and prior
years. The amounts paid in each year were not significant.
28. Other matters
In July 2019, the Public Institution for Social Security in Kuwait (PIFSS)
served a claim against a number of parties, including certain Man Group
companies, a former employee of Man Group and a former third-party
intermediary. The trial is scheduled to commence on 3 March 2025. The subject
matter of these allegations dates back over a period of 20 years. PIFSS
initially sought compensation of $156 million (plus compound interest) and
certain other remedies which were unquantified in the claim. In an amended
particulars of claim filed in August 2024, PIFFS increased the quantum of its
claim to approximately $278 million plus interest. We dispute the basis for
this inflated quantum figure and the assumptions upon which PIFFS has
calculated it. We continue to dispute the allegations and consider there is no
merit to the claim (in respect of liability and quantum) and will therefore
vigorously and robustly defend the proceedings.
We are subject to various other claims, assessments, regulatory enquiries and
investigations in the normal course of business. The Board does not expect
such matters to have a material adverse effect on our financial position.
29. Unconsolidated structured entities
Accounting policy
We have evaluated all exposures and concluded that where we hold an
investment, fee receivable, accrued income, or commitment with an investment
fund or a CLO, this represents an interest in a structured entity as defined
by IFRS 12 'Disclosure of Interests in Other Entities'.
Investment funds are designed so that their activities are not governed by way
of voting rights, and contractual arrangements are the dominant factor in
affecting an investor's returns. The activities of these entities are governed
by investment management agreements or, in the case of CLOs, indentures.
Our maximum exposure to loss from unconsolidated structured entities is the
sum total of any investment held, fee receivables and accrued income.
Our interest in and exposure to unconsolidated structured entities is as
follows:
2024 Total Less infrastructure mandates and consolidated Total AUM unconsolidated structured Number Net management Fair value of investment held Fee Maximum exposure
AUM
entities
of funds
($m)
receivables and accrued income
to loss
($bn) fund entities(1)
($bn) fee margin(2)
($m)
($m)
($bn) (bps)
Alternative
Absolute return 45.3 (0.5) 44.8 132 110 122 120 242
Total return 41.5 (1.6) 39.9 96 66 81 64 145
Multi-manager solutions 14.4 (9.7) 4.7 40 18 2 5 7
Long-only
Systematic 38.6 (0.1) 38.5 95 27 4 62 66
Discretionary 28.8 (0.2) 28.6 57 57 21 27 48
Total 168.6 (12.1) 156.5 420 230 278 508
2023 Total Less infrastructure mandates and consolidated Total AUM unconsolidated structured Number Net Fair value of investment Fee Maximum exposure
AUM
entities
of funds
management
held
receivables
to loss
($bn) fund entities(1)
($bn)
($m)
and accrued income
($m)
fee margin(2)
($m)
($bn)
(bps)
Alternative
Absolute return 47.7 (0.3) 47.4 123 112 130 158 288
Total return 42.5 (1.3) 41.2 88 64 137 60 197
Multi-manager solutions 19.4 (12.8) 6.6 51 17 3 14 17
Long-only
Systematic 36.5 - 36.5 84 24 4 36 40
Discretionary 21.4 (0.2) 21.2 56 59 15 22 37
Total 167.5 (14.6) 152.9 402 289 290 579
Notes:
1 For infrastructure mandates where we do not act as investment manager
or adviser, our role in directing investment activities is diminished and
therefore these are not considered structured entities.
2 Net management fee margins are the categorical weighted average.
Five-year record
2024 2023 2022 2021 2020
Income statement ($m)
Core net management fee revenue 1,097 963 927 877 730
Core performance fees 310 180 779 569 179
Core profit before tax 473 340 779 658 284
Core management fee profit before tax 323 280 290 266 180
Core performance fee profit before tax 150 60 489 392 104
Core profit 381 271 647 557 240
Statutory profit before tax 398 279 745 590 179
Statutory profit 298 234 608 487 138
Earnings per share (¢)
Statutory EPS (diluted) 25.1 19.4 45.8 33.8 9.3
Core EPS (diluted) 32.1 22.4 48.7 38.7 16.2
Core management fee EPS (diluted) 21.5 18.4 18.4 15.7 10.3
Balance sheet ($m)
Net cash and cash equivalents 454 136 457 387 351
Net assets 1,676 1,612 1,699 1,651 1,497
Net tangible assets 867 782 1,022 928 716
Other metrics
Core cash flows from operating activities before working capital movements 502 362 810 700 341
($m)
Ordinary dividends per share (¢) 17.2 16.3 15.7 14.0 10.6
AUM ($bn) 168.6 167.5 143.3 148.6 123.6
Average headcount 1,802 1,716 1,595 1,453 1,456
USD/sterling exchange rates:
Average 0.7826 0.8042 0.8081 0.7267 0.7789
Year-end 0.7990 0.7855 0.8276 0.7390 0.7315
'Core' measures are alternative performance measures. Further details of our
alternative performance measures, including non-core items, are set out on
pages 61 to 67.
Alternative performance measures
We assess our performance using a variety of alternative performance measures
(APMs). We discuss our results on a statutory as well as a 'core' basis. Core
metrics, which are each APMs, exclude acquisition and disposal-related items,
significant non-recurring items and volatile or uncontrollable items, as well
as profits or losses generated outside of our investment management business.
Accordingly, these core metrics reflect the way in which performance is
monitored by the Board and present the profits or losses that drive our cash
flows. They also inform the way in which our variable compensation is
assessed. Details of the non-core items in the year are set out below.
Our APMs also reclassify all income and expenses relating to our consolidated
fund entities, which are required by IFRS to be split across multiple lines in
the consolidated income statement, to core gains/losses on investments in
order to reflect their performance as part of our seed book programme. Tax on
non-core items and movements in deferred tax relating to the utilisation or
recognition of tax assets in the US are similarly excluded from core profit,
with tax on core profit considered a proxy for cash taxes paid.
In 2023, accounting for the acquisition of Varagon Capital Partners, L.P. in
accordance with the requirements of IFRS resulted in the recognition of all
future payments to selling shareholders who remain in employment
post-acquisition as employment-related expenses. This arises because each of
these payments can be forfeited should those employees become 'bad leavers'
during specified periods following the acquisition. Economically, the payments
are transactions with the individuals in their capacity as owners. Recognising
that these owners also hold significant roles in the organisation, the bad
leaver clauses are protective in nature and not intended to compensate the
individuals for employment services. As these transactions are related to an
acquisition, we consider it appropriate to adjust the expense recognised in
the year to reflect the proportion of the profits that have been generated in
the same period and are attributable to these employees through an adjustment
to core profit. This more closely aligns the charges with the associated cash
flows.
The approach to the classification of non-core items maintains symmetry
between losses and gains and the reversal of any amounts previously classified
as non-core. Note that our APMs may not be directly comparable with similarly
titled measures used by other companies.
Non-core items in profit before tax comprise the following:
Note to the consolidated financial statements 2024 2023
$m
$m
Acquisition and disposal-related:
Amortisation and impairment of acquired intangibles 9 (24) (28)
Acquisition-related costs 6.3 - (9)
Other employment-related expenses(1) 6.2 (28) (21)
Revaluation of acquisition-related liabilities (4) -
Restructuring costs 6.1 (22) -
Costs associated with legal claims 6.3 (4) (1)
Gain on disposal of investment property - right-of-use lease assets 8.1 3 12
Share of post-tax loss of associates 10 (2) (3)
Foreign exchange movements 5.1 6 (11)
Non-core items (75) (61)
Note:
1 Adjustment to align acquisition-related employment-related expenses
with proportionate share of earnings in the year.
Core measures: reconciliation to statutory equivalents
The statutory line items within the consolidated income statement can be
reconciled to their core equivalents as follows:
2024 Core measure Reclassification Non-core items Per consolidated income statement
$m
of amounts relating to consolidated
fund entities
Management and other fees( APM ) 1,135 (9) - 1,126
Performance fees( APM ) 310 (2) - 308
Revenue( APM ) 1,445 (11) - 1,434
Net income or gains on investments and other financial instruments( APM ) 50 32 6 88
Third-party share of gains relating to interests in consolidated funds - (10) - (10)
Rental income( APM ) 2 1 - 3
Distribution costs (38) - - (38)
Net revenue( APM ) 1,459 12 6 1,477
Asset servicing costs (67) - - (67)
Compensation costs( APM ) (684) - (22) (706)
Other employment-related expenses( APM ) (10) - (28) (38)
Other costs( APM ) (199) (12) (4) (215)
Net finance expense (23) - - (23)
Gain on disposal of investment property - right-of-use lease assets - - 3 3
Amortisation and impairment of acquired intangibles - - (24) (24)
Share of post-tax loss of associates - - (2) (2)
Revaluation of acquisition-related liabilities - - (4) (4)
Third-party share of post-tax profits (3) - - (3)
Profit before tax( APM ) 473 - (75) 398
Tax expense( APM ) (92) - (8) (100)
Profit( APM ) 381 - (83) 298
Core basic EPS 32.9¢
Core diluted EPS 32.1¢
2023 Core measure Reclassification Non-core items Per consolidated income statement
$m
of amounts relating
to consolidated
fund entities
Management and other fees( APM ) 995 (5) - 990
Performance fees( APM ) 180 (2) - 178
Revenue( APM ) 1,175 (7) - 1,168
Net income or gains on investments and other financial instruments( APM ) 48 39 (11) 76
Third-party share of gains relating to interests in consolidated funds - (24) - (24)
Rental income( APM ) 5 1 - 6
Distribution costs (32) - - (32)
Net revenue( APM ) 1,196 9 (11) 1,194
Asset servicing costs (58) - - (58)
Compensation costs( APM ) (595) - - (595)
Other employment-related expenses( APM ) (2) - (21) (23)
Other costs( APM ) (179) (9) (10) (198)
Net finance expense (21) - - (21)
Gain on disposal of investment property - right-of-use lease assets - - 12 12
Amortisation and impairment of acquired intangibles - - (28) (28)
Share of post-tax loss of associates - - (3) (3)
Third-party share of post-tax profits (1) - - (1)
Profit before tax( APM ) 340 - (61) 279
Tax expense( APM ) (69) - 24 (45)
Profit( APM ) 271 - (37) 234
Core basic EPS 23.0¢
Core diluted EPS 22.4¢
APM The core equivalents of these statutory measures are defined as
alternative performance measures.
Core costs comprise asset servicing, compensation costs, core other
employment-related expenses, core other costs and third-party share of
post-tax profits.
The statutory line items within the consolidated balance sheet can be
reconciled to their core equivalents as follows:
2024 Core measure Reclassification of Per consolidated
$m
amounts relating to consolidated
balance sheet
fund entities
Assets
Cash and cash equivalents( APM ) 225 229 454
Fee and other receivables( APM ) 486 6 492
Investments in fund products and other investments( APM ) 722 1,692 2,414
Investments in associates 8 - 8
Current tax asset 17 - 17
Finance lease receivable 77 - 77
Leasehold improvements and equipment 58 - 58
Leasehold property - right-of-use lease assets 90 - 90
Investment property - right-of-use lease assets 13 - 13
Investment property - consolidated fund entities - 12 12
Software intangible assets 57 - 57
Deferred tax assets 117 - 117
Pension asset 13 - 13
Goodwill and acquired intangibles 752 - 752
Total assets 2,635 1,939 4,574
Liabilities
Trade and other payables( APM ) 635 20 655
Employment-related payables to sellers of businesses acquired 56 - 56
Provisions 16 - 16
Current tax liabilities 3 - 3
CLO liabilities - consolidated fund entities - 1,366 1,366
Third-party interest in consolidated funds - 553 553
Third-party interest in other subsidiaries 1 - 1
Lease liability 248 - 248
Total liabilities 959 1,939 2,898
Net assets 1,676 - 1,676
2023 Core measure Reclassification of amounts relating Per consolidated
$m
to consolidated
balance sheet
fund entities
Assets
Cash and cash equivalents( APM ) 180 96 276
Fee and other receivables( APM ) 463 88 551
Investments in fund products and other investments( APM ) 787 1,492 2,279
Investments in associates 11 - 11
Current tax asset 15 - 15
Finance lease receivable 67 - 67
Leasehold improvements and equipment 53 - 53
Leasehold property - right-of-use lease assets 112 - 112
Investment property - right-of-use lease assets 17 - 17
Investment property - consolidated fund entities - 30 30
Software intangible assets 54 - 54
Deferred tax assets 128 - 128
Pension asset 12 - 12
Goodwill and acquired intangibles 776 - 776
Total assets 2,675 1,706 4,381
Liabilities
Borrowings 140 - 140
Trade and other payables( APM ) 597 116 713
Employment-related payables to sellers of businesses acquired 23 - 23
Provisions 16 - 16
Current tax liabilities 3 - 3
CLO liabilities - consolidated fund entities - 1,036 1,036
Third-party interest in consolidated funds - 554 554
Third-party interest in other subsidiaries 1 - 1
Lease liability 283 - 283
Total liabilities 1,063 1,706 2,769
Net assets 1,612 - 1,612
APM The core equivalents of these statutory measures are defined as
alternative performance measures.
Core management fee profit and core performance fee profit
Core profit comprises core management fee profit, a steadier earnings stream,
and core performance fee profit, a more variable earnings stream. This split
facilitates analysis of our profitability drivers.
2024 Core measure Reclassification of amounts relating to consolidated Non-core items Per consolidated
$m
fund entities
income statement
Management and other fees 1,135 (9) - 1,126
Distribution costs (38) - - (38)
Net management fee revenue 1,097 (9) - 1,088
Rental income 2 1 - 3
Asset servicing costs (67) - - (67)
Compensation costs (management fee) (490) - (22) (512)
Other employment-related expenses (10) - (28) (38)
Other costs (199) (12) (4) (215)
Net finance expense (management fee) (8) - - (8)
Third-party share of post-tax profits (management fee) (2) - - (2)
Management fee profit before tax 323 (20) (54) 249
Tax expense (67)
Management fee profit 256
Core basic management fee EPS 22.1¢
Core diluted management fee EPS 21.5¢
Performance fees 310 (2) - 308
Net income or gains on investments and other financial instruments 50 32 6 88
Compensation costs (performance fee) (194) - - (194)
Net finance expense (performance fee) (15) - - (15)
Third-party share of post-tax profits (performance fee) (1) - - (1)
Performance fee profit before tax 150 30 6 186
Tax expense (25)
Performance fee profit 125
Core basic performance fee EPS 10.8¢
Core diluted performance fee EPS 10.6¢
2023 Core measure Reclassification of amounts relating to consolidated Non-core items Per consolidated
$m
fund entities
income statement
Management and other fees 995 (5) - 990
Distribution costs (32) - - (32)
Net management fee revenue 963 (5) - 958
Rental income 5 1 - 6
Asset servicing costs (58) - - (58)
Compensation costs (management fee) (439) - - (439)
Other employment-related expenses (2) - (21) (23)
Other costs (179) (9) (10) (198)
Net finance expense (management fee) (9) - - (9)
Third-party share of post-tax profits (1) - - (1)
Management fee profit before tax 280 (13) (31) 236
Tax expense (58)
Management fee profit 222
Core basic management fee EPS 18.8¢
Core diluted management fee EPS 18.4¢
Performance fees 180 (2) - 178
Net income or gains on investments and other financial instruments 48 39 (11) 76
Compensation costs (performance fee) (156) - - (156)
Net finance expense (performance fee) (12) - - (12)
Performance fee profit before tax 60 37 (11) 86
Tax expense (11)
Performance fee profit 49
Core basic performance fee EPS 4.2¢
Core diluted performance fee EPS 4.0¢
Core gains/losses on investments
We use the measure core gains/losses on investments to represent the net
return we receive on our seeding investments portfolio, combining both
consolidated and unconsolidated fund entities on a consistent basis. We
therefore exclude from this measure gains or losses on investments which do
not relate to the performance of the seed book and adjust the amounts relating
to consolidated funds to be included in this line on a consistent basis. Core
gains/losses on investments can be reconciled to the consolidated income
statement as follows:
Note to the consolidated financial statements 2024 2023
$m
$m
Net gains on seeding investments portfolio 5.1 47 47
Net gains on fund investments held for deferred compensation arrangements 5.1 3 1
and other investments
Core gains on investments 50 48
Non-core items:
Consolidated fund entities: gross-up of net gains on investments 5.1 32 39
Foreign exchange movements 5.1 6 (11)
Net income or gains on investments and other financial instruments 88 76
Core tax rate
The core tax rate is the effective tax rate on core profit before tax and is
equal to the tax on core profit divided by core profit before tax. The tax
expense on core profit before tax is calculated by excluding the tax
benefit/expense related to non-core items from the statutory tax expense,
together with amounts relating to the utilisation or recognition of available
US deferred tax assets. Therefore, tax on core profit is considered a proxy
for our cash taxes payable.
The impact of non-core items on our tax expense is outlined below:
2024 2023
$m
$m
Statutory tax expense 100 45
Tax on non-core items:
Amortisation and impairment of acquired intangibles - 2
Restructuring costs 4 -
Costs associated with legal claims 1 -
Gain on disposal of investment property - right-of-use lease assets (1) (3)
Foreign exchange movements (2) 3
Non-core tax item - US deferred tax assets (10) 22
Core tax expense 92 69
Comprising:
Tax expense on core management fee profit before tax 67 58
Tax expense on core performance fee profit before tax 25 11
The core tax rate is 19% for 2024 (2023: 20%).
Core cash flows from operations excluding working capital movements
Cash flows from operating activities excluding working capital movements can
be reconciled to cash flows from operating activities as reported in the
consolidated cash flow statement as follows:
Note to the consolidated financial statements 2024 2023
$m
$m
Cash flows from operating activities 648 337
Plus changes in working capital: 21
Increase/(decrease) in fee and other receivables 29 (104)
Decrease in other financial assets (211) (71)
Decrease in trade and other payables 36 200
Core cash flows from operations excluding working capital movements 502 362
Net tangible assets
Net tangible assets is used as a measure of the capital available for
deployment, and is equal to net assets excluding goodwill and intangibles, as
follows:
Note to the consolidated financial statements 2024 2023
$m
$m
Seeding investments portfolio 5 532 595
Available cash and cash equivalents 14 225 180
Borrowings 14 - (140)
Contingent consideration 18 (4) (3)
Put options over non-controlling interests in subsidiaries 18 (10) (9)
Payables under repo arrangements 18 (16) (45)
Employment-related payables to sellers of businesses acquired (56) (23)
Other tangible assets and liabilities 196 227
Net tangible assets 867 782
Goodwill and intangibles 809 830
Shareholders' equity 1,676 1,612
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