REG - Man Group plc - Financial results for the year ended 2025
Yesterday 07:00
For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20260226:nRSZ4355Ua&default-theme=true
RNS Number : 4355U Man Group plc 26 February 2026
Press Release
26 February 2026
Results for the year ended 31 December 2025
Strategy delivering; Man Group strongly positioned for growth
Key points
Record organic growth reflects the relevance of our offering
o AUM(1) of $227.6 billion as at 31 December 2025 (31 December 2024: $168.6
billion)
o Relative investment performance( KPI ) of 1.3%, with 4.9% outperformance
in the long-only category
o Net inflows of $28.7 billion, 19.3% ahead of the industry( KPI ) on an
asset-weighted basis
Resilient EPS highlights the value of our diversified platform
o Run rate net management fees of $1,182 million (31 December 2024: $1,058
million)
o Core performance fees of $281 million from a broad range of strategies and
solutions (2024: $310 million)
o Statutory EPS (diluted) of 15.0¢ (2024: 25.1¢) and core EPS
(diluted)( KPI ) of 27.6¢ (2024: 32.1¢)
Disciplined capital allocation supports our long-term ambitions
o Recommended final dividend per share of 11.5¢, resulting in a total
dividend for 2025 of 17.2¢ (2024: 17.2¢)
o Seeded 12 new strategies during the year, supporting innovation across the
firm
o Completed the acquisition of Bardin Hill, deepening our range of credit
capabilities
o Net tangible assets of $723 million as at 31 December 2025 (31 December
2024: $867 million)
Significant progress delivering on our strategic priorities
o Aligned our highly complementary systematic teams to accelerate research
and product co-development
o Brought institutional investment capabilities to the wealth channel
through the launch of four new active ETFs
o New AI partnership with Anthropic to enhance investment research, drive
productivity and increase automation
Robyn Grew, Chief Executive Officer of Man Group, said:
"2025 marked another year of significant progress for Man Group in which we
continued to execute with discipline against our strategic priorities. We
enhanced our platform by combining our systematic teams, bolstered our credit
capabilities and US footprint through the acquisition of Bardin Hill, and
launched our active ETF platform to further expand our presence in the wealth
channel.
"While markets were often testing, the breadth of our diversified platform,
the depth of our client relationships and the quality of our people enabled us
to navigate these challenges with resilience and emerge stronger. We ended the
year with positive momentum, delivering good performance across a range of key
strategies including liquid credit, quant equity and our multi-strat, and
gained market share for the sixth consecutive year.
"We enter 2026 from a position of strength - strength in our ability to grow
and diversify, to attract and develop exceptional talent, and to position
ourselves at the forefront of technology, particularly AI, driving innovation
and delivering for our clients and shareholders."
This document should be read in conjunction with the content and definitions
included in the 2025 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 58 to 64. For details of key performance indicators
( KPI ), refer to page 11.
1. Assets under management. Excludes non-fee-paying committed capital
of $4.9 billion as at 31 December 2025.
Summary financials
$ millions, unless otherwise stated Year ended Year ended Change
31 Dec 2025 31 Dec 2024
AUM, end of period $227.6bn $168.6bn 35%
Core net management fee revenue 1,077 1,097 (2%)
Core performance fees 281 310 (9%)
Core net revenue(1) 1,398 1,459 (4%)
Core management fee profit before tax 294 323 (9%)
Core performance fee profit before tax 113 150 (25%)
Core profit before tax 407 473 (14%)
Statutory profit 175 298 (41%)
¢
Core management fee EPS (diluted) 19.6 21.5 (9%)
Core EPS (diluted) 27.6 32.1 (14%)
Statutory EPS (diluted) 15.0 25.1 (40%)
Dividend per share 17.2 17.2 0%
Conference call and presentation
A conference call with management, including an opportunity to ask questions,
will commence at 08.30am (London) on 26 February 2026. To ask a question
during the Q&A session you will need to access the meeting via the link
below. A copy of the presentation will be available on the Shareholder
Relations section of www.man.com (//www.man.com) from 08:25am. We recommend
connecting to the meeting 5-10 minutes prior to the start time.
The conference call can be accessed at:
https://mangroup.webex.com/mangroup/j.php?MTID=mfed555ccecdff49ec78d682b7578e5c5
(https://mangroup.webex.com/mangroup/j.php?MTID=mfed555ccecdff49ec78d682b7578e5c5)
Webinar number (and access code): 2374 850 3695
Webinar password: ManYE2025Results (62693202 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 Strategy and Shareholder Relations
+44 20 7144 1000
shareholder.relations@man.com (mailto:shareholder.relations@man.com)
Georgiana Brunner
Head of Communications
+44 20 7144 1000
communications@man.com (mailto:communications@man.com)
Eilís Murphy
Brunswick Group
+44 7974 982471
emurphy@BrunswickGroup.com (mailto:emurphy@BrunswickGroup.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 11.5¢ per share for the financial year ended 31 December 2025,
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 8 May 2026, in
advance of payment. This is in addition to the $100 million share repurchase
programme announced and completed in 2025.
Dates for the 2025 final dividend
Ex-dividend date 09 April 2026
Record date 10 April 2026
Final election date for Dividend Reinvestment Plan (DRIP)(1) 28 April 2026
Sterling conversion date 08 May 2026
Payment date 20 May 2026
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.
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 Jersey, we manage $227.6(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 (//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 (//www.shareview.co.uk/info/drip) .
2. At 31 December 2025. All investment management and advisory
services are offered through Man Group affiliated regulated investment
managers.
Assets under management
AUM movements for the year ended 31 December 2025
$bn AUM at Net flows Investment performance Other(1) AUM at
31 Dec 2024
31 Dec 2025
Absolute return 45.3 (3.8) 0.9 0.1 42.5
Total return 41.5 (0.5) 1.7 3.9 46.6
Multi-manager 14.4 (1.5) 1.0 0.6 14.5
Alternative 101.2 (5.8) 3.6 4.6 103.6
Systematic long-only 38.6 22.5 13.0 2.1 76.2
Discretionary long-only 28.8 12.0 4.8 2.2 47.8
Long-only 67.4 34.5 17.8 4.3 124.0
Total 168.6 28.7 21.4 8.9 227.6
AUM movements for the three months ended 31 December 2025
$bn AUM at Net flows Investment performance Other(1) AUM at
30 Sep 2025
31 Dec 2025
Absolute return 40.5 (1.0) 2.3 0.7 42.5
Total return 42.7 (0.3) 1.4 2.8 46.6
Multi-manager 14.1 0.0 0.3 0.1 14.5
Alternative 97.3 (1.3) 4.0 3.6 103.6
Systematic long-only 72.7 (0.1) 3.5 0.1 76.2
Discretionary long-only 43.9 2.8 1.4 (0.3) 47.8
Long-only 116.6 2.7 4.9 (0.2) 124.0
Total 213.9 1.4 8.9 3.4 227.6
1. 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. Includes AUM related to the
acquisition of Bardin Hill, which completed on 1 October 2025.
AUM by product category
$bn 31 Dec 2024 31 Mar 2025 30 Jun 2025 30 Sep 2025 31 Dec 2025
Absolute return 45.3 43.1 39.7 40.5 42.5
Institutional solutions(1) 15.7 14.9 13.9 14.9 16.9
Traditional trend-following 8.4 7.7 6.6 6.5 7.0
Discretionary equity 4.4 4.6 4.7 4.6 4.8
Multi-strategy quant 5.8 5.5 4.9 5.3 4.2
Alternative trend-following 4.1 3.7 3.4 3.0 3.4
Other(2) 6.9 6.7 6.2 6.2 6.2
Total return 41.5 42.6 41.1 42.7 46.6
Multi-asset risk parity 15.0 15.5 14.3 14.5 14.3
Alternative risk premia 10.9 11.4 11.9 12.9 14.0
US private credit 10.3 10.2 9.9 10.2 12.2
CLOs 2.5 2.5 2.2 2.1 2.7
Real estate 1.4 1.6 1.4 1.5 1.5
Other(3) 1.4 1.4 1.4 1.5 1.9
Multi-manager 14.4 14.1 13.1 14.1 14.5
Infrastructure and direct access 9.7 9.3 8.3 8.5 8.5
Segregated 4.2 4.3 4.5 5.3 5.7
Diversified and thematic FoHF 0.5 0.5 0.3 0.3 0.3
Systematic long-only 38.6 39.6 61.3 72.7 76.2
Global equity 19.6 18.3 34.8 42.5 42.9
Emerging markets equity 8.4 8.7 11.4 13.6 15.6
International equity 8.4 10.3 12.5 13.4 14.3
Credit 2.2 2.3 2.6 3.2 3.4
Discretionary long-only 28.8 33.2 38.1 43.9 47.8
Credit and convertibles 14.7 18.8 22.1 26.6 29.6
Japan equity 5.7 5.9 6.2 7.0 7.5
UK equity 4.5 4.5 5.1 5.0 5.4
Emerging markets fixed income 0.9 1.1 1.2 1.2 1.2
Europe ex-UK equity 1.3 1.0 0.7 0.4 0.4
Other(4) 1.7 1.9 2.8 3.7 3.7
Total 168.6 172.6 193.3 213.9 227.6
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 2025
31 Dec 2025
31 Dec 2025
31 Dec 2025
31 Dec 2025
Absolute return
AHL Alpha 1 6.3% 5.5% 3.2% 5.0% 9.7%
AHL Dimension 2 4.4% -1.4% 1.9% 4.5% 4.3%
AHL Evolution 3 10.4% 4.9% 0.7% 4.6% 10.6%
Man Alpha Select Alternative 4 4.1% 5.1% 5.8% 6.2% 4.8%
Man Event Driven Alternative 5 2.5% 9.7% 5.9% 5.2% 6.3%
Man Strategies 1783 6 3.7% 14.0% 10.5% 10.5% 8.1%
Total return
Man TargetRisk 7 5.4% 8.2% 9.8% 4.8% 7.6%
Man Alternative Risk Premia 8 6.4% 12.9% 8.8% 10.2% 5.6%
Multi-manager
FRM Diversified II 9 4.0% 9.2% 6.1% 6.3% 4.3%
Systematic long-only
Numeric Global Core 10 3.4% 25.4% 24.5% 15.2% 12.4%
Relative return 0.3% 4.3% 3.3% 3.0% 1.3%
Numeric Emerging Markets Core 11 5.4% 37.2% 20.6% 7.8% 7.8%
Relative return 0.7% 3.7% 4.2% 3.7% 2.6%
Numeric Europe Core 12 5.0% 24.3% 18.7% 13.9% 9.5%
Relative return -1.3% 4.9% 4.1% 2.7% 2.4%
Discretionary long-only
Man High Yield Opportunities 13 0.3% 9.1% 11.9% 7.4% 9.5%
Relative return -1.0% 0.6% 1.7% 3.3% 4.0%
Man Global Investment Grade Opportunities 14 1.4% 10.4% 15.3% - 8.6%
Relative return 0.5% 3.4% 8.7% - 7.7%
Man Japan CoreAlpha Equity 15 12.1% 32.4% 28.6% 26.5% 7.9%
Relative return 3.2% 6.9% 3.9% 10.2% 2.2%
Man Undervalued Assets 16 7.3% 16.5% 14.3% 12.2% 8.2%
Relative return 0.9% -7.6% 0.7% 0.5% 1.0%
Man Continental European Growth 17 0.6% 3.2% 6.8% 1.9% 8.6%
Relative return -5.9% -24.7% -8.3% -8.8% 1.9%
Indices
HFRX Global Hedge Fund Index 18 1.4% 7.1% 5.2% 2.9%
HFRI Fund of Funds Conservative Index 18 2.4% 8.2% 6.7% 5.5%
HFRI Equity Hedge (Total) Index 18 2.9% 16.9% 13.4% 7.9%
HFRX EH: Equity Market Neutral Index 18 1.9% 6.4% 5.9% 3.7%
Barclay BTOP 50 Index 19 2.6% 3.1% 2.2% 6.2%
SG Trend Index 20 4.8% 2.4% 0.3% 7.0%
Past or projected 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 Alpha Select Alternative IL GBP; AUM included
within Discretionary equity under the absolute return product category.
5. Represented by Man Event Driven Alternative IN USD; AUM included
within Discretionary equity under the absolute return product category.
6. Represented by Man Strategies 1783 Class F1 USD from 31 January
2020 to 31 December 2021 (0.50% p.a. management fee and 20% performance fee);
and by Man Strategies 1783 Class A USD from 1 January 2022 to 31 August 2024
(2% p.a. management fee and 20% performance fee). From 1 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.
7. Represented by Man TargetRisk Class I USD.
8. Represented by Man Alternative Risk Premia SP - Class A USD.
9. 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 product category.
10. 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.
11. 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.
12. 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.
13. Represented by Man High Yield Opportunities I H USD. Relative return
is shown vs ICE BofA Global High Yield Index (USD, TR) Hedged benchmark; AUM
included within Credit and convertibles under the discretionary long-only
product category.
14. 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.
15. 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.
16. 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.
17. 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.
18. HFRI and HFRX index performance over the past 4 months is subject to
change.
19. The historical Barclay BTOP 50 Index data is subject to change.
20. Formally known as Newedge Trend Index. Index performance is net of
all fees.
Chief Executive Officer's review
Overview of the year
2025 was a year of pronounced peaks and troughs for markets, where periods of
volatility tested investor resolve before conditions eventually stabilised. We
navigated shifting sentiment and, at times, unprecedented reversals, absorbing
shocks from the DeepSeek mini-crash in January, tariff announcements in April,
ongoing geopolitical tensions, and debate regarding the sustainability of AI
infrastructure investment and fiscal spending. Though the path was far from
smooth, this marked the first year since the pandemic where all major asset
classes delivered positive returns.
In equities, the narrative of US exceptionalism began to fade as market
leadership broadened to banks and industrials across Europe and Asia. Value
indices matched their growth-oriented counterparts for the first time in
years, underpinned by robust corporate earnings. Fixed income markets also
rebounded, delivering their best performance since 2020 as central banks
pivoted to policy easing. This shift contributed to a 7% decline in the US
dollar on a trade-weighted basis, while precious metals reached record highs.
Markets demonstrated a remarkable capacity to withstand stress, delivering a
strong result by year-end.
Given these circumstances, I am pleased to report a resilient set of results
that underscore the continued demand for our differentiated offering, the
depth of our global client relationships, the quality of our outstanding
talent and, crucially, the value of the diversified business we have built.
During the year, we delivered positive investment performance of $21.4 billion
for our clients. Overall performance for our absolute return strategies was
3.8%, with particularly strong returns once again from our multi-strat, Man
1783 (+14.0%). With unconstrained access to the alternative investment
capabilities across our firm, this strategy demonstrates the power of the Man
Group platform. By dynamically allocating capital across a broad range of
uncorrelated discretionary and systematic strategies, we have been able to
deliver consistent, high-quality performance for our clients since launch in
2020.
The first half of the year was undoubtedly testing for trend-following
strategies, continuing the run of underwhelming performance that began in Q2
2024. The reversal of the 'Trump trade' in Q1, combined with the
administration's stop-start approach to tariffs, created whipsawing market
conditions where sustained trends were hard to find. However, investor
sentiment moved on from the lows of early April, and August proved to be the
inflection point. As risk-on sentiment took hold, several trends finally began
to emerge and persist. Our strategies adjusted positioning to capture these
moves, delivering strong gains into year-end. In that context, it was great to
see AHL Alpha (+5.5%) and AHL Evolution (+4.9%) finish the year in positive
territory.
Our total return and long-only strategies performed well, aided by positive
equity momentum. Man TargetRisk (+8.2%) demonstrated its ability to navigate
uncertainty through a balanced, diversified framework grounded in rigorous
risk management, while Man Alternative Risk Premia (+12.9%) delivered solid
returns owing to its systematic exposure to multiple risk factors. Effective
security selection also drove significant gains of 20.6% across our systematic
long-only strategies and 14.8% across our discretionary long-only strategies.
On an asset-weighted basis, relative investment performance was positive in
2025, driven primarily by our long-only strategies (+4.9%). The results from
the systematic long-only range were particularly impressive; over the past
three years, these strategies have delivered returns 3-4% above their
respective benchmarks. Our credit strategies also continue to generate
consistent outperformance, with Man High Yield Opportunities and Man Global
Investment Grade Opportunities returning 0.6% and 3.4% above their benchmarks
during the year. Considering the dispersion we have experienced in markets
recently, these outcomes highlight the value of active management and why our
clients continue to partner with us. Within alternatives, the overall relative
underperformance was largely attributable to AHL Evolution, which differs
significantly from the more traditional trend-followers that form part of the
index as it trades harder-to-access markets; it performed broadly in line with
its alternative trend-following peers over the same period. The breadth of our
outperformance not only highlights the skill of our investment teams but also
emphasises the value of our increasingly diversified range of strategies.
Our clients face increasingly complex challenges that require tailored
solutions. Our distribution network remains a critical competitive advantage
in meeting this demand, and it drove exceptional client-led growth in 2025. We
delivered total net inflows of $28.7 billion, 19.3% ahead of the industry.
This is a record for Man Group and a very strong outcome, particularly in the
context of the challenging fundraising environment during the year. Our
long-only offering contributed $34.5 billion in net flows, serving as a
powerful endorsement of our differentiated proposition. While alternative
strategies faced some headwinds, engagement on downside protection and crisis
alpha remains robust as we head into 2026, reinforcing the continued relevance
of our uncorrelated content. I was also pleased to see clients commit over
$680 million of capital to our US direct lending business, a clear
demonstration of our ability to commercialise new capabilities.
This sales momentum, combined with positive investment performance and
tailwinds from FX, drove our AUM to a new high of $227.6 billion as at 31
December 2025, a 35% increase on the previous year. Core net management fee
revenue(1) was 2% lower than in 2024 reflecting a shift in the underlying mix
of business, while core performance fees were $281 million despite a
well-below-average contribution from our trend-following strategies. This
resilience validates the underlying performance fee earnings potential of the
diversified business we have built over recent years. Through continued cost
discipline, we delivered core earnings per share (diluted) of 27.6 cents
(2024: 32.1 cents) and statutory earnings per share (diluted) of 15.0 cents
(2024: 25.1 cents).
There is no escaping the fact that, at times, 2025 tested our business. The
first half was demanding, but we navigated the challenges to emerge stronger
and finish the year with positive momentum. This reflects the underlying
quality of our business, driven by exceptional talent and technology. It is
also a powerful validation of our strategy; the diversification we have built
over the past two years is delivering for us. I have absolute conviction that
our multi-year strategic priorities are the right ones and will continue to
drive our success in the future.
1. Man Group's alternative performance measures are outlined on pages
58 to 64.
Progress against our priorities
Strong client relationships
Our approach to client service remains grounded in the belief that
longstanding partnerships are built through consistent dialogue and
transparency. In a year of volatile markets, we prioritised being present with
our clients, holding over 16,000 meetings to better understand their evolving
needs and leverage our global perspective to help them navigate this complex
environment.
It is a well-known trend that large allocators are seeking to do more with
fewer managers, consolidating their relationships to focus on true strategic
partnerships. This shift plays directly to one of our core strengths: the
breadth of our offering and our ability to deliver customised solutions at
scale. Whether I am speaking with a pension fund in North America or a
sovereign wealth fund in the Middle East, the feedback I receive is clear:
investors come to us because we can solve their most significant challenges.
This ability to deepen relationships is proven by the numbers, with our top 50
clients invested in more than four strategies on average across the firm.
Through our strategic priorities, we are also targeting the regions and
channels where we are currently underweight relative to the size of the
opportunity. This focus is delivering results. 2025 was a record year for
adding new clients, with 36% of our gross sales coming from relationships that
are entirely new to the firm. Our investments in the US and wealth are driving
this momentum and gaining real traction. For example, we successfully launched
four new active ETFs this year, spanning discretionary and systematic styles
across equity and credit. This is a tangible demonstration of how we are
bringing institutional investment and product development capabilities to new,
fast-growing markets. The agility we have shown in adapting to client needs
has served us well, and that will not change. We have taken market share for
the sixth consecutive year and we remain focused on maintaining that edge as
we grow.
Innovative investment strategies
We can only continue to be successful for our clients if we maintain the
quality of what we offer. That means we are continuously innovating to improve
our investment processes, knowing that innovation is not just about launching
the next flagship product; it is about making everything we do better, every
single day. For example, in 2025, our efforts in quant focused on expanding
our universe of trading opportunities and alternative data sources, investing
heavily in our ability to dynamically adapt to changing market conditions, and
enhancing our best-in-class execution platform. To drive innovation and
strengthen collaboration between teams, I was delighted to announce in July
that Greg Bond would take on the new role of Chief Investment Officer for Man
Group.
Staying relevant to our clients also means expanding our offering. Our mindset
of innovation and technology edge are powerful draws for talent, helping us
hire five new hedge fund investment teams in 2025 and enriching our range of
solutions. Our seed capital programme continues to play a key role in
supporting innovation and we seeded 12 new strategies across the business
during the year. In October, we also completed the acquisition of Bardin Hill,
a New York-based opportunistic credit and CLO manager. This addition deepens
our range of credit capabilities, reinforcing a platform that continues to go
from strength to strength. We now manage $53.1 billion across the liquid and
private credit spectrum, positioning us as a broad-based partner in the credit
space.
The benefits of having a diversified range of investment content were
highlighted clearly in 2025. The strength we saw in Man 1783, liquid credit
and quant equity enabled us to successfully navigate a significant period of
stress for our trend-following strategies. We continue to believe that these
are the right areas to invest in for the future. I am very pleased with the
progress we have made so far, and the way our clients continue to engage and
commit capital to us is a powerful reflection of that confidence.
Efficient and effective operations
Looking back, 2025 was a year of consolidation. To match the pace of change in
our industry and deliver on our long-term strategy, we took the opportunity to
simplify, streamline and strengthen our platform. These actions position Man
Group to operate with greater focus and agility, ensuring we remain well
positioned for future growth. As part of this process, we brought the AHL and
Numeric businesses closer together under a Systematic division, enabling
greater collaboration, product development and operational synergies. This
aligns two highly complementary systematic teams to enhance our research and
technology expertise for future growth initiatives and to strengthen our
ability to develop cutting-edge solutions for our clients.
More broadly, we reviewed our operating model to ensure resources were aligned
with our multi-year priorities, and we responded thoughtfully and decisively
when market conditions impacted our business during the first half of the
year. We took action to protect high-performing talent, maintain investment in
core and strategic areas of long-term growth, and preserve the foundations
that underpin our success. We have always run this firm with discipline and
efficiency, and that commitment will not change.
Our focus on operational discipline and efficiency extends directly to how we
view technology. We have spent considerable time evaluating how AI will
reshape our industry and, specifically, its potential to drive productivity
gains across the board. We are actively dedicating resources to our AI
capabilities to enhance research, deliver scalability and increase automation
- a comprehensive effort spanning our entire organisation. Central to this is
our specialist AI team, which is translating advanced data and intelligent
agents into practical tools that deliver measurable impact. Our heritage in
technology and ethos of constant improvement mean we approach this opportunity
from a position of strength, having made meaningful advances in 2025 on both
the investment and operational fronts. With over 85% of our people using these
tools regularly, we are not just keeping pace with change; we are leading it.
People and culture
Delivering for our clients requires the very best people and we work hard to
ensure Man Group remains an exceptional place to build a career. We have
fostered a collaborative and dynamic environment, with a genuine sense of
community, where high performers can thrive. This distinct culture gives us
our edge and continues to be a differentiator as we seek to attract and
elevate talent.
We have always believed that difference is our differentiator. There is no
'typical' person who succeeds here; finding excellent minds requires casting
the net wide and looking beyond traditional backgrounds. Whether in our
established locations or our growing office in Sofia, we are committed to
finding the best person for every role and ensuring we have the broad
perspectives necessary to challenge conventional thinking and deliver superior
results for our clients.
We have made substantial progress this year in widening our talent pipeline.
Through our 'Paving the Way' initiative and UK apprenticeship programme, we
are actively engaging with schools and youth organisations to promote careers
in finance. A particular highlight was our new partnership with Bard College's
Displaced Student Program, welcoming refugee students into our Boston office
to gain experience in investment management. Alongside these early-career
initiatives, we continue to attract experienced talent from across the
financial sector and beyond, particularly as we expand our capabilities in
credit, wealth and technology.
Outlook
We enter 2026 with a more diversified business, strong momentum and much
improved performance fee optionality. After a decade defined by US
exceptionalism, we are seeing a complex, shifting landscape emerge across the
globe, exactly the environment in which active management thrives. Our ability
to help clients navigate this environment with a partnership-led approach and
a broad range of alpha-focused strategies has never been more relevant. This
is supported by a platform powered by technology, where our commitment to
innovation gives us the agility to evolve as markets do.
I am incredibly proud of what we have achieved this year; we have been tested,
and we have emerged stronger. Looking forward, I am energised by the
opportunities ahead and confident that we have the right strategy, the right
team, and the right culture to deliver for our clients and our shareholders.
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 1.3% in 2025 was driven by our long-only
strategies, which delivered 4.9% above their benchmarks.
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 2025 were 19.3%, a record for Man Group and a very
strong outcome in the context of the challenging fundraising environment
during the year.
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) decreased by 9% to 19.6 cents. This was
driven by lower core net management fees, reflecting a shift in the underlying
mix of business, partially offset by continued fixed cost discipline.
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) decreased by 14% to 27.6 cents. This is primarily
attributable to challenging market conditions for trend-following strategies
during the first half, which led to a below-average contribution to core
performance fees.
1. Details of the calculation of our alternative performance measures
are provided on pages 58 to 64.
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
We made positive progress during the year with total market-based emissions
falling 37% in 2025. This was primarily driven by lower business travel
emissions following a reduction in DEFRA emissions factors.
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 2025 staff survey recorded an engagement score of 75%, with a completion
rate of 73%.
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 increased to 40% as at 31
December 2025.
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 GSIA definition.
How we performed
In 2025, ESG-integrated AUM increased by 75% to $109.5 billion as at 31
December 2025.
Chief Financial Officer's review
Overview
2025 was a year of two halves. The record net inflows and recovery of our
trend-following strategies during the second half of the year partially
mitigated the impact of the exceptional market conditions on AUM and
performance fee revenues in the first half, enabling us to deliver a resilient
set of results for the full year. Man Group generated statutory profits of
$175 million in the year to 31 December 2025 compared with $298 million in
2024. Core management fee profit before tax too was down 9%, at $294 million.
We completed the acquisition of Bardin Hill during the year. Bardin Hill's
opportunistic and performing credit platforms complement Man Group's existing
private credit strategies, further diversifying our offering to investors. The
acquisition also further expands Man Group's footprint in the US, with our
global distribution capabilities providing Bardin Hill with access to new
investors.
We ended the year with record AUM of $227.6 billion, up from $168.6 billion at
the end of 2024. The increase was driven by net inflows of $28.7 billion and
positive investment performance of $21.4 billion, with the acquisition of
Bardin Hill in the second half of the year contributing a further $2.7
billion. The weakening of the US dollar during the year also led to positive
FX movements of $6.7 billion, as a significant portion of our AUM is
denominated in other currencies.
The average net management fee margin decreased to 56 basis points for the
year compared with 63 basis points in 2024, primarily driven by large inflows
into lower margin strategies during the year, and the shift towards lower
margin long-only strategies in our business mix. As a result, management and
other fees on a statutory basis were broadly in line with the prior year, as
lower margins offset the impact of the increase in AUM. Similarly, the run
rate net management fee margin decreased from 63 basis points at the end of
2024 to 52 basis points at 31 December 2025. Run rate core net management fee
revenue of $1,182 million at the end of the year increased from $1,058 million
at the end of 2024, reflecting the significant growth in AUM.
Year ended Year ended
31 December 31 December
$m 2025 2024
Core net management fee revenue 1,077 1,097
Core performance fees 281 310
Core gains on investments 38 50
Core rental income 2 2
Core net revenue 1,398 1,459
Asset servicing costs (73) (67)
Core compensation costs (675) (684)
Core other costs (215) (199)
Net finance expense (18) (23)
Core other employment-related expenses (7) (10)
Third-party share of post-tax profits (3) (3)
Core profit before tax 407 473
Core management fee profit before tax 294 323
Core performance fee profit before tax 113 150
Non-core items (before tax) (150) (75)
Core profit 321 381
Statutory profit 175 298
Statutory EPS (diluted) 15.0¢ 25.1¢
Core EPS (diluted) 27.6¢ 32.1¢
Core management fee EPS (diluted) 19.6¢ 21.5¢
Proposed dividend per share 17.2¢ 17.2¢
Core performance fees of $281 million decreased from $310 million in 2024
($279 million and $308 million respectively on a statutory basis). Both
alternative and long-only strategies generated performance fees during the
year, with our trend-following strategies recovering well from the market
turbulence seen in the first half of the year.
Our overall asset-weighted relative investment outperformance was 1.3%,
compared with 1.0% in 2024. Core gains on investments of $38 million, compared
with $50 million in 2024, were generated by mark-to-market gains across our
seed book. An increase in core costs to $973 million from $963 million in 2024
was driven by an increase in asset servicing costs as a result of the
significant growth in AUM and an increase in depreciation and amortisation as
we continue to invest in the business, together with the impact of the
strengthening of sterling against the US dollar in the year.
Restructuring costs of $30 million were incurred in 2025 as we undertook a
reorganisational exercise to reduce fixed costs and better align resources
towards our strategic priorities. These costs have been classified as non-core
as they are non-recurring in nature. Certain costs incurred as part of this
exercise will be recognised in the consolidated income statement in 2026, as
they relate to retention payments for employees who remain in service beyond
the end of 2025. These costs will continue to be classified as non-core, given
their connection to the same restructuring exercise.
Total non-core items (excluding tax) increased from a net expense of $75
million in 2024 to $150 million in 2025, driven by an increase of $41 million
in the revaluation of acquisition-related payables associated with the
acquisition of Asteria following stronger than forecast performance of the
joint venture. In addition, costs associated with legal claims increased by
$28 million, restructuring costs were $8 million higher than in the prior year
and $6 million of costs associated with the acquisition of Bardin Hill were
incurred. FX gains of $3 million were lower than the $6 million recognised in
2024. These movements were partially offset by decreases in the amortisation
and impairment of acquired intangibles and other employment-related expenses
of $7 million and $10 million respectively.
We continue to be strongly cash-generative, with core cash flows from
operations (excluding working capital movements) of $418 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 2025, we had net tangible assets of $723 million, including
$173 million of cash and cash equivalents (excluding amounts held by
consolidated fund entities) and net of $167 million of acquisition-related
payables which crystallise between 2028 and 2034. We continue to invest
heavily in technology to ensure we remain at the forefront of alternative
investment management, allocate capital to seed new strategies and support
innovation across the firm, 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 is in line with 2024. We also completed the
$100 million share repurchase that we announced in February, taking the total
announced returns to shareholders for 2025 to $293 million, and $1.8 billion
over the last five years.
Impact of foreign exchange rates
The weakening of the US dollar during the year positively impacted the portion
of our AUM which is not denominated in US dollars, increasing our reported AUM
by $6.7 billion. This also had a positive impact on our core net management
fee revenue. However, the strengthening of sterling against the US dollar
resulted in an increase in core costs of around $10 million compared with
2024.
Assets under management
Change
$bn 31 December Net inflows/ Investment Other 31 December $bn %
2024 (outflows) performance 2025
Alternative Absolute return 45.3 (3.8) 0.9 0.1 42.5 (2.8) (6)
Total return 41.5 (0.5) 1.7 3.9 46.6 5.1 12
Multi-manager solutions 14.4 (1.5) 1.0 0.6 14.5 0.1 1
Total 101.2 (5.8) 3.6 4.6 103.6 2.4 2
Long-only Systematic 38.6 22.5 13.0 2.1 76.2 37.6 97
Discretionary 28.8 12.0 4.8 2.2 47.8 19.0 66
Total 67.4 34.5 17.8 4.3 124.0 56.6 84
Total 168.6 28.7 21.4 8.9 227.6 59.0 35
Absolute return
The decrease in absolute return AUM was driven by net outflows of $3.8
billion, primarily from trend-following strategies, partially offset by
continued inflows into Institutional solutions. Positive investment
performance of $0.9 billion was driven by a number of strategies in the
category, as well as the recovery of our alternative trend-following.
Total return
Total return AUM increased by $5.1 billion, driven by the Bardin Hill
acquisition which added $2.7 billion to the category. Strong absolute
investment performance of $1.7 billion, primarily from alternative risk premia
and TargetRisk, was partially offset by net outflows of $0.5 billion.
Multi-manager
AUM was broadly in line with 31 December 2024, as net outflows of $1.5
billion, largely from low net management fee margin Infrastructure mandates,
were offset by positive absolute performance of $1.0 billion and other
movements of $0.6 billion.
Systematic long-only
AUM increased by $37.6 billion, with very strong net inflows of $22.5 billion,
including a single client subscription of $13.2 billion. Positive absolute
performance of $13.0 billion was across all strategies in the category.
Discretionary long-only
AUM increased by $19.0 billion during the year. Net inflows of $12.0 billion
were primarily into credit and convertibles strategies. Positive performance
of $4.8 billion was driven by multiple strategies, reflecting strong security
selection across our investment teams.
Revenue
Statutory net revenue decreased to $1,405 million from $1,477 million in 2024,
driven by lower performance fee revenues and an increase in distribution
costs. Similarly, core net revenue decreased from $1,459 million to $1,398
million.
Core net Net management Run rate net
management fees fee margin Run rate core net management fee margin
($m) (bps) management fees (bps)
($m)
2025 2024 2025 2024 31 December 2025 31 December 2024 31 December 2025 31 December
2024
Absolute return 426 525 105 110 411 498 97 110
Total return 269 285 63 66 288 265 62 64
Multi-manager solutions 28 27 20 18 31 28 21 19
Systematic long-only 136 106 24 27 175 102 23 27
Discretionary long-only 215 151 57 57 277 165 58 57
Other service income 3 3 n/a n/a n/a n/a n/a n/a
Total 1,077 1,097 56 63 1,182 1,058 52 63
Management fees
Core net management fee revenue decreased by 2% to $1,077 million in 2025
(2024: $1,097 million), driven by a change in product mix, with strong inflows
into low-margin systematic long-only strategies, and an increase in
distribution costs as a proportion of revenue. The change in product mix
resulted in the net management fee margin decreasing from 63 to 56 basis
points.
The absolute return net management fee margin decreased to 105 basis points
from 110 basis points due to lower average AUM in higher margin
trend-following strategies following the large drawdown in the first half of
the year. The total return net management fee margin decreased by 3 basis
points to 63 basis points, primarily driven by slower activity in our US
Direct Lending business in the first half of the year. The multi-manager net
management fee margin increased to 20 basis points in 2025 from 18 basis
points in 2024, driven by outflows from low margin Infrastructure and direct
access mandates. The net management fee margin of systematic long-only
strategies decreased from 27 basis points to 24 basis points due to large
inflows at a lower margin. Discretionary long-only net management fee margins
remained in line with 2024 at 57 basis points.
Run rate core net management fee revenue increased to $1,182 million at 31
December 2025 from $1,058 million at the end of 2024, driven by the
significantly higher AUM at the end of the year.
Performance fees
Core performance fees for the year of $281 million (2024: $310 million)
comprised $180 million from alternative strategies (2024: $264 million) and
$101 million from long-only strategies (2024: $46 million). A broad range of
strategies contributed to our performance fee earnings in the year. At 31
December 2025, we had $60 billion of performance-fee-eligible AUM.
Investment gains and rental income
Core gains on investments of $38 million (2024: $50 million) were generated by
mark-to-market gains across our seed book. Core rental income of $2 million
was in line with the prior year.
Costs
Our core PBT margin, defined as the ratio of core profit before tax to core
net revenue, was 29% for the year, compared with 32% in 2024. The decrease was
driven by lower core net management fee revenue, reflecting a shift in the
underlying mix of business, as well as lower core performance fees due to the
challenging conditions for our trend-following strategies in the first half of
the year. The impact of this reduction in core net revenue was partially
offset by our continued cost discipline.
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 $73
million compared with $67 million in 2024, which equated to around 5 (2024: 5)
basis points of average AUM, excluding systematic long-only strategies. The
year-on-year increase of $6 million was primarily driven by AUM growth.
Compensation costs
Core compensation costs of $675 million for the year were slightly lower than
the $684 million recognised in 2024. The overall compensation ratio increased
to 48% in 2025 from 47% in 2024, reflecting the decrease in management and
performance fee revenue generated in the year.
We undertook a restructuring programme during the year, incurring cash costs
of $20 million and non-cash costs of $10 million relating to the accelerated
vesting of deferred compensation. These costs are classified as non-core items
as they are non-recurring in nature.
Other costs
Core other costs, which exclude acquisition-related costs and amounts incurred
by consolidated fund entities, increased to $215 million in 2025 from $199
million in 2024, driven by an increase in computer software amortisation as we
continue to invest in technology. This was further negatively impacted by the
strengthening 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 and in Australia, which have lower/higher rates of tax
respectively compared with the UK. Tax on statutory profit for the year was
$82 million compared with $100 million in 2024. The statutory effective tax
rate of 32% increased from 25% in 2024 as a result of the derecognition of a
portion of the available US deferred tax assets associated with accumulated
state tax losses following a change in the allocation of income between
states, together with the revaluation of acquisition-related liabilities not
being tax deductible. The core tax rate increased from 19% in 2024 to 21% in
2025 as we are now paying federal taxes on profits generated in the US, having
utilised all of our accumulated federal tax losses.
In the US, we have accumulated tax losses and tax-deductible goodwill and
intangibles of $78 million (2024: $78 million) that can be offset against
future taxable profits. We have recognised $64 million of the available $78
million of US deferred tax assets at 31 December 2025 (2024: $76 million and
$78 million respectively), with the unrecognised portion relating to state and
city tax losses expected to expire before utilisation. As noted above, a
change in the apportionment of forecast taxable profits by state resulted in
the derecognition of $11 million of the available US deferred tax assets
during the year.
The principal factors influencing our future underlying tax rate are the mix
of profits by tax jurisdiction 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 decreased from $298 million in 2024 to $175 million in 2025,
with core profit decreasing from $381 million to $321 million over the same
period. Statutory EPS (diluted) decreased from 25.1¢ in 2024 to 15.0¢ in
2025 (32.1¢ and 27.6¢ respectively on a core basis), with the decrease in
profitability partially offset by a decrease in share count as a result of the
$100 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 $418 million for the year
(2024: $502 million).
As at 31 December 2025, our cash balance, excluding amounts held by
consolidated fund entities, was $173 million.
$m Year ended 31 December Year ended 31 December
2025 2024
Opening available cash and cash equivalents 225 180
Core cash flows from operations excluding working capital movements 418 502
Working capital movements (excluding seeding) (152) (65)
Working capital movements - seeding 84 78
Acquisition of subsidiaries, net of cash acquired (38) -
Dividends paid (198) (192)
Share repurchases (including costs) (100) (50)
Repayment of borrowings - (140)
Other movements (66) (88)
Closing available cash and cash equivalents 173 225
Balance sheet
31 December 31 December
$m 2025 2024
Available cash and cash equivalents 173 225
Seeding investments portfolio 470 532
Other tangible assets and liabilities 80 110
Net tangible assets 723 867
Goodwill and intangibles 851 809
Shareholders' equity 1,574 1,676
Our balance sheet remains strong and liquid. Available cash and cash
equivalents decreased to $173 million at 31 December 2025 from $225 million at
the end of 2024, with no amounts drawn under our revolving credit facility at
the end of the year.
We use our balance sheet to invest in new products, aiming to redeem as client
AUM in the funds grows. We had seed investments of $470 million at 31 December
2025 (2024: $532 million), of which $4 million were financed via repos (2024:
$16 million). In addition, we held $133 million of total return swap exposure
at 31 December 2025 (2024: $232 million), allowing us to maintain our seed
portfolio exposure in a cash-efficient way. During the year, we redeemed $395
million from the seed book and reinvested $185 million.
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.
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 2025, we
announced and completed a $100 million share repurchase.
The Board is proposing a final dividend for 2025 of 11.5¢ per share, which
together with the interim dividend of 5.7¢ per share equates to a total
dividend for the year of 17.2¢ per share, in line with the 2024 full year
dividend. The proposed final dividend of around $129 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 19% to 1,136 million over
that same period.
Our revolving credit facility of $800 million provides additional liquidity as
required. Following the exercise of the final extension option, the facility
is scheduled to mature in December 2030. 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.
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 2025 was marked by sharp volatility driven by tariff announcements, Unchanged
relative to peer groups, may result in lower subscriptions and higher processes with integrated risk management, designed to target and deliver on geopolitical tensions, and uncertainty around AI investment. Despite these
redemptions. This risk is heightened at times of disrupted and volatile the investment mandate of each product. We focus on hiring and retaining challenges, all major asset classes delivered positive returns simultaneously
markets, which could be triggered by geopolitical or climate factors. This may highly skilled professionals who are incentivised to deliver alpha within the for the first time in several years. These conditions initially challenged
also result in dissatisfied clients, negative press and reputational damage. parameters of their mandate. trend-following strategies, though they recovered strongly in the second half.
Our systematic long-only and discretionary credit products performed well
Absolute underperformance also reduces AUM, resulting in lower management and Man Group's diversified range of products and strategies mitigates the risk to throughout the year, generally outperforming rising markets.
performance fees. the business from underperformance of any particular strategy or market.
Consistent with our strategy, we increased diversification in 2025 through AUM Net inflows were strong, particularly for systematic long-only and
growth in systematic long-only and credit strategies, including the Bardin discretionary credit. These were partially offset by outflows in absolute
Hill acquisition. return strategies in response to the performance of trend-following strategies
earlier in the year.
Man Group has an agile business model, so is well equipped to adjust to
medium-term transition risks and also capture any opportunities. With a strong
track record for innovation, the firm continues to focus on providing our
sustainability-driven investors with products that incorporate ESG analytics.
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 2024 presented a calm year for counterparty concerns, 2025 continued the Unchanged
directly or indirectly, becomes distressed or defaults. available financial counterparties, each of which is approved and regularly theme despite various market stresses. Ultimately no counterparty risk
reviewed and challenged for creditworthiness by a firm-wide counterparty reduction intervention was required.
Shareholders and investors in Man Group funds and products are exposed to committee.
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 2030, provides The acquisition of Bardin Hill, the balance sheet seeding programme (including Unchanged
obligations. Man Group with a robust liquidity backstop and flexibility to manage seasonal use of external financing) and completion of a $100 million share buyback in
liquidity demands. Liquidity forecasting for Man Group and the UK/ EEA 2025 were planned and managed without issues.
Adverse market moves and volatility may sharply increase the demands on the sub-group, including downside cases, facilitates planning and informs
liquid resources in Man Group's funds. Market stress and increased redemptions decision-making. The asset liquidity distribution across funds remained broadly unchanged but
could result in the deterioration of fund liquidity and in the severest cases
growth of our credit strategies increased the quantity of lower liquidity
this could lead to the gating of funds. The Financial Risk team conducts regular liquidity tests on Man Group's funds. assets. Our in-house liquidity analysis and reporting toolkit continued to
We aim to manage resources in such a way as to meet all plausible demands for evolve and now includes a fixed income limit framework. There were no material
fund redemptions according to contractual terms. trading liquidity challenges.
Market risks
Investment book performance Man Group uses capital to seed new funds to build our fund offering and expand A disciplined framework ensures that each request for seed capital is assessed The investment book size reduced over 2025 as balance sheet risk-taking Unchanged
product distribution. Man Group also holds CLO risk retention positions until based on its risk and return on capital. declined and some aged investments were redeemed. There were 12 new positions
product maturity. The firm is exposed to a decline in value of the investment
in 2025, managed by active recycling of existing investments.
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 some losses in CLO equity
Man Direct Lending loan origination and syndication is a shorter-term risk, limits and an exit strategy and are hedged to a benchmark where appropriate. offset by performance from across the other positions in the seed book (net of
exposed to sharp credit spread widening during the holding period. The positions and hedges are monitored regularly by Financial Risk and benchmark hedges).
reviewed by the SIC.
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 have Man Group continues to prioritise improving systems and controls to minimise Increased
operational processes within Man Group, including employee-related issues. continued to operate during the year. process failures. There has been no material change in the incidents in 2025
and where issues have arisen, tracking mechanisms have been in place to ensure
Risks and controls are reassessed periodically and in the event of material remediation and preventative actions are completed. During 2025, acquisitions
change, risk events or issues, to determine the adequacy of the control were managed in line with plans and AUM increased. Man Group announced
environment. organisational changes to streamline the structure and position it to deliver
on the firm's strategic priorities including diversifying and growing the
asset base. Whilst change, including operational change through AI can add
risk in the short term, the aim to reduce organisational complexity, and the
implementation of targeted solutions focused on offsetting any additional
risk, will mitigate this longer-term.
Man Group has continued to be able to attract and retain talented individuals
across the firm and has refined the talent review process to deliver a sharper
view of risk and replaceability.
External (third-party) process failures Man Group continues to outsource several functions and manage critical Man Group's first line teams have implemented robust methodologies (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 the Group 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 Business Continuity & Resilience assessments are performed to ensure the experienced by, our critical third party providers during 2025 and there have
providers do not or are unable to perform services as required, including due business can continue operating during disruptions. These assessments review been no material losses or other impacts.
to bankruptcy, resulting in knock-on implications for our business and critical third-party services and develop plans for maintaining operations if
processes. those services become unavailable.
Systematic investment and model management 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 performed assessments of our control
implementation and execution. Key risks include model/algorithm failures or
environment as required by the MiFID II (Markets in Financial Instruments
issues with data upon which decisions are made. Controls are both preventative and detective to minimise the potential Directive II) Regulatory Technical Standards 6.
consequences from such an event arising.
Man Group has not observed an increase in material internal risk events in
2025.
Risk Mitigants Status and trend Change
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 Unchanged
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 CISO, together with the activities and complex cyber-attacks. Although we have not experienced any
Information Security Steering Committee, ensure that our control environment material issues in 2025, the cyber risk landscape continues to evolve, driven
is continuously reviewed and adjusted to keep pace with the evolving by factors including the rise of AI-driven cyberattacks and increasing
regulatory, legislative and cyber threat landscapes. vulnerabilities in the supply chain. However, our controls and defences have
adapted in parallel, and we believe our overall cyber risk exposure remains
stable.
Information technology and business continuity 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 Unchanged
in system downtime, severely degraded performance or limited system Technology team of over 420 professionals aligns with each business unit to enrichment, centralising order management, and expanding capacity and
functionality. ensure work is correctly prioritised. The firm's operational processes include developing controls around emerging technologies.
mature risk, incident, problem management and prioritisation procedures to
Business continuity risks may arise from incidents such as a denial of access minimise the likelihood and impact of technology failures. In 2025, the firm reviewed and extended its UK disaster recovery data centre
to a key site or a data centre outage or the physical and transition risk
capability, completing the build of a new facility that became the main UK
associated with climate change, which could lead to business disruption. Robust change control processes are one of our strongest mitigants against disaster recovery location.
technology risk. Our software release management framework includes mandatory
testing, approval gates and rollback procedures to minimise the risk and We have continued disaster recovery testing to portions of our estate for the
impact of software failures arising from code deployments. duration of the movement to the new facility.
Business continuity and resiliency risk is mitigated through a comprehensive The Business Continuity and Resilience (BCR) team focused on enhancing and
training and governance programme and detailed continuity plans that undergo maturing the programme including the identification and testing of scenarios
severe but plausible scenario tests. We maintain tested contingency and to identify vulnerabilities and validate recovery solutions.
recovery capabilities (including secure remote access) and conduct ongoing
risk and threat assessments. Our operations and ability to work effectively were not materially impacted by
the heatwaves in the US and Continental Europe, with the majority of employees
Man Group has a small number of employees, a relatively limited physical working remotely.
footprint and can operate remotely - as it has done in the past.
Risk Mitigants Status and trend Change
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. During 2025, the firm embedded enhanced
compliance with) laws and regulations relating to anti-money-laundering, Internal policies, processes and controls are subject to regular review and fraud prevention governance and procedures in line with new legislative
counter-terrorist financing, tax evasion, anti-bribery and corruption, breach consultation internally and with external advisers to ensure we remain well requirements.
of economic sanctions, insider trading and market abuse and failure to prevent placed to manage evolving requirements. Man Group has a dedicated KYC team.
fraud. Independent oversight and challenge are also provided by Man Group's No material incidents were seen in 2025, and the firm complies with the
Compliance and Financial Crime teams. evolving sanctions regime.
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 2025 key areas included significant
firm fail to comply with them. Man Group supports proportionate and thoughtful understand the context and impact of any requirements. regulatory changes in the US with a new SEC Chairman, rule withdrawals and
regulation and initiatives that develop the regulatory environment. However,
postponements, cyber security and privacy reforms and developments in a
change can also result in increased operational complexity and costs to Man Emphasis is placed on proactively analysing new legal and regulatory regulatory framework for crypto assets.
Group or the sectors or markets in which it operates. developments and communications to assess likely impacts and mitigate risks.
The governance framework includes ongoing proactive reporting and management Man Group's engagement with the key regulators remains very active and work
Our operational risks also include any legal and reputational risk from any of potential and actual legal and litigation risks. continues to support a number of regulatory initiatives.
suggestion of greenwashing if the ESG credentials of a fund or our corporate
behaviour does not meet client or regulatory expectations. Man Group continues to liaise directly and indirectly with competent Man Group continues to robustly defend legal proceedings relating to matters
authorities e.g. FCA, SEC, FINMA, CBI, FINRA, CFTC, SFC. arising in the ordinary course of the Group's business.
Failure to comply with laws and regulations may put Man Group at risk of
fines, lawsuits or reputational damage. Man Group has specific policies and greenwashing controls which continue to Dedicated RI Compliance experts monitor our RI-related regulatory obligations,
evolve and are subject to robust review. We take a relatively low key and stewardship activities, and review RI strategy-related and marketing
considered approach in our external communications with a focus on education documentation. Our multi-layer controls minimise the risk of greenwashing.
and data as well as highlighting the challenges inherent in this area. They also serve to enhance interaction and collaboration between the RI team
and the investment teams.
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 maintains a strong and resilient reputation with key stakeholders, Unchanged
leading investment manager and place to work. Reputational damage could result conduct of our employees. Our governance and control structure mitigates though reputational risk may arise from investment performance, share price
in significant redemptions from our funds, and could lead to difficulties with operational concerns, and our attention to people and investment processes are volatility, strategic decisions, and organisational change. During the year,
external financing, credit ratings, talent attraction/ retention and relations designed to comply with accepted standards of investment management practice. performance challenges in certain strategies, related share price movements
with regulators, core counterparties and outsourcing providers. We encourage a culture of openness, inclusion and diversity. and a number of organisational changes attracted media attention, which
moderated following improved performance in the second half. The Group
actively manages reputational risk through clear communication, disciplined
execution and robust governance, while continuing to build its profile in
priority markets, including North America and areas of strategic growth.
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 Unchanged
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
matter experts. This assessment informs the universe of principal risks tensions (conflicts in Ukraine and the Middle East, US tension with China and
By definition, these entail greater uncertainty about if or when the risk or managed and mitigated by the firm. the wholesale impact of a year of tariffs, particularly those imposed by the
an event may manifest. US).
The emerging risk categories include natural disasters, pandemics, disruption Whilst the likelihood of many of the risks has increased, no changes were made
to financial markets and business infrastructure, geopolitical risk and to Man Group's headline principal risks as a result of the emerging risks
changes in the competitive landscape. identified.
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 in office as at the date of this report, 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 2025 2024
$m $m
Management and other fees 4 1,126 1,126
Performance fees 4 279 308
Revenue 1,405 1,434
Net income or gains on investments and other financial instruments 5.1 84 88
Third-party share of gains relating to interests in consolidated funds 5.2 (27) (10)
Rental income 5.2,8.1 2 3
Distribution costs 6 (59) (38)
Net revenue 1,405 1,477
Asset servicing costs 6 (73) (67)
Compensation costs 6.1 (707) (706)
Other employment-related expenses 6.2 (25) (38)
Other costs 6.3 (258) (215)
Finance income 7 16 15
Finance expense 7 (34) (38)
Gain on disposal of investment property - right-of-use lease assets - 3
Amortisation and impairment of acquired intangibles 9 (17) (24)
Share of post-tax loss of associates 11 (2) (2)
Revaluation of acquisition-related liabilities (45) (4)
Third-party share of post-tax profits (3) (3)
Statutory profit before tax 257 398
Tax expense 12.1 (82) (100)
Statutory profit attributable to owners of the Company 175 298
Statutory earnings per share 13
Basic 15.4¢ 25.7¢
Diluted 15.0¢ 25.1¢
Consolidated statement of comprehensive income
For the year to 31 December
Note 2025 2024
$m $m
Statutory profit attributable to owners of the Company 175 298
Other comprehensive income:
Remeasurements of defined benefit pension plans 14 - 2
Items that will not be reclassified to profit or loss - 2
Cash flow hedges:
Valuation gains taken to equity 19 20
Realised gains transferred to consolidated income statement (17) (22)
Deferred tax on cash flow hedges 12.3 - 1
Net investment hedges (4) 7
Foreign currency translation 6 (7)
Items that may be reclassified to profit or loss 4 (1)
Other comprehensive income 4 1
Total comprehensive income attributable to owners of the Company 179 299
Consolidated balance sheet Note 2024
At 31 December $m
2025
$m
Assets
Cash and cash equivalents 15 291 454
Fee and other receivables 16 657 492
Investments in fund products and other investments 5 2,539 2,414
Investments in associates 11 6 8
Current tax assets 12.2 28 17
Finance lease receivable 8.1 84 77
Leasehold improvements and equipment 17 63 58
Leasehold property - right-of-use lease assets 8.2 108 90
Investment property - right-of-use lease assets 8.2 13 13
Investment property - consolidated fund entities 5.2 - 12
Software intangible assets 18 57 57
Deferred tax assets 12.3 106 117
Pension asset 14 14 13
Goodwill and acquired intangibles 9 794 752
Total assets 4,760 4,574
Liabilities
Trade and other payables 19 843 655
Current tax liabilities 12.2 4 3
Employment-related payables to sellers of businesses acquired 6.2 72 56
Provisions 20 36 16
Borrowings 15 13 -
CLO liabilities - consolidated funds 5.2 1,402 1,366
Third-party interest in consolidated funds 5.2 544 553
Third-party interest in other subsidiaries 1 1
Lease liability 8.2 271 248
Total liabilities 3,186 2,898
Net assets 1,574 1,676
Equity
Capital and reserves attributable to owners of the Company 21 1,574 1,676
The financial statements were approved by the Board of Directors on 25
February 2026 and signed on its behalf by:
Robyn Grew Antoine
Forterre
Chief Executive Officer Chief Financial Officer
Consolidated cash flow statement Note 2025 2024
For the year to 31 December $m $m
Operating activities
Cash generated from operations 22 338 769
Interest paid (24) (27)
Payment of lease interest 8.2 (10) (11)
Tax paid 12.2 (65) (83)
Cash flows from operating activities 239 648
Investing activities
Interest received 12 12
Receipt of sub-lease interest 8.1 1 -
Receipts of finance lease receivables principal 8.1 2 -
Purchase of leasehold improvements and equipment 17 (18) (18)
Purchase of software intangible assets (22) (23)
Acquisition of subsidiaries, net of cash acquired 10 (38) -
Cash flows used in investing activities (63) (29)
Financing activities
Repayments of lease liability principal 8.2 (27) (22)
Proceeds from lease modification 8.2 15 -
Purchase of Man Group plc shares by the Employee Trust (31) (35)
Proceeds from sale of Treasury shares in respect of Sharesave - 1
Share repurchase programmes (including costs) 21 (100) (50)
Ordinary dividends paid to owners of the Company 23 (198) (192)
Transactions with non-controlling shareholders - 3
Payment of third-party share of post-tax profits (3) (4)
Net repayment of borrowings 15 - (140)
Cash flows used in financing activities (344) (439)
Net (decrease)/increase in cash and cash equivalents (168) 180
Cash and cash equivalents at beginning of the year 454 276
Effect of foreign exchange movements 5 (2)
Cash and cash equivalents at end of the year 15 291 454
Less: restricted cash held by consolidated fund entities 15 (118) (229)
Available cash and cash equivalents at end of the year 15 173 225
Consolidated statement of changes in equity
$m Note Share capital Reorganisation reserve Profit and Shares held by Treasury Cumulative translation adjustment Other Total
loss account
shares
Employee reserves
Trust
At 1 January 2024 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 12.2 - - 3 - - - - 3
Deferred tax on share-based payments 12.3 - - (2) - - - - (2)
Purchase of shares by the Employee Trust - - - (35) - - - (35)
Disposal of shares by the Employee Trust - - (31) 31 - - - -
Share repurchases 21 - - (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 23 - - (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
Statutory profit - - 175 - - - - 175
Other comprehensive income - - - - - 2 2 4
Total comprehensive income - - 175 - - 2 2 179
Share-based payments - - 45 - - - - 45
Current tax on share-based payments 12.2 - - 3 - - - - 3
Deferred tax on share-based payments 12.3 - - (2) - - - - (2)
Purchase of shares by the Employee Trust - - - (31) - - - (31)
Disposal of shares by the Employee Trust - - (39) 39 - - - -
Share repurchases 21 - - (100) - - - - (100)
Transfer to Treasury shares - - 100 - (100) - - -
Transfer from Treasury shares - - (6) - 6 - - -
Cancellation of Treasury shares (2) - (123) - 123 - 2 -
Dividends paid 23 - - (198) - - - - (198)
Put option over non-controlling interests - - 2 - - - - 2
At 31 December 2025 42 (1,688) 3,476 (102) (227) 47 26 1,574
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 had distributable
reserves of $2.9 billion as at 31 December 2025 (2024: $2.9 billion).
Notes to the financial statements
1. Basis of preparation
Accounting framework
The audited 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.
Man Group plc (the Company) has taken advantage of the exemption provided in
Article 105 (11) of the Companies (Jersey) Law 1991 and therefore does not
present its individual financial statements and related notes.
The financial information included in this statement does not constitute
statutory accounts. Statutory accounts for the year ended 31 December 2025,
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 2026 Annual General Meeting (AGM) will be posted to
shareholders and will be available to download from the Company's website in
mid-March 2026. The Annual General Meeting will be held on 7 May 2026 at 16:00
at Riverbank House, 2 Swan Lane, London EC4R 3AD. For further details please
refer to the Notice of our 2026 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 measured at the present value of the expected
redemption amount and 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. Relevant information
regarding AUM, flows and net management fee margins allows 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 2025 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. We have continued to apply the requirements of the
ED in the absence of alternative guidance.
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 17 to 22 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 an 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
Acquisition of Bardin Hill
Man Group's acquisition of Bardin Hill Investment Partners LP, Bardin Hill
Investment Partners GP LLC and Bardin Hill GP Holdings LLC (collectively
'Bardin Hill') in the year has introduced new sources of estimation
uncertainty. The measurement of provisional values of the identifiable assets
acquired, liabilities assumed and goodwill arising on the acquisition required
the use of multiple uncertain inputs (Note 10). An increase or decrease in the
fair value of the assets acquired and liabilities assumed would result in an
equal and offsetting decrease or increase in goodwill.
Acquisition-related liabilities
The valuations of acquisition-related liabilities, including contingent
consideration payable and put options over non-controlling interests, are
sensitive to changes in one or more unobservable inputs which are considered
reasonably possible at the balance sheet date. Further information on the
carrying amounts of these liabilities and the sensitivity of those amounts to
changes in unobservable inputs is set out in Note 24.
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.
Other considerations
The Board has also considered the assumptions used in the valuation of the net
pension asset, and the assessments for impairment of goodwill 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 these assets at the balance sheet date.
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 on 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:
2025 2024
$m $m
Investments in fund products 247 231
Investments in loans 2 27
Investments in consolidated funds: CLO assets 1,457 1,453
Investments in consolidated funds: other transferable securities 832 702
Other investments 1 1
Investments in fund products and other investments 2,539 2,414
Less:
Fund investments held for deferred compensation arrangements (211) (189)
Investments in consolidated funds: exclude consolidation gross-up of net (1,857) (1,692)
investment
Other investments (1) (1)
Seeding investments portfolio 470 532
Included in fund investments held for deferred compensation arrangements at 31
December 2025 are balances of $100 million (2024: $87 million) which are
expected to be settled after more than 12 months.
At 31 December 2025, exposure to fund products via TRS was $133 million (2024:
$232 million). Additional exposure via repo arrangements (included within
investments in fund products, with an offsetting repayment obligation included
within trade and other payables) was $4 million (2024: $16 million). The
largest single investment in fund products at 31 December 2025 was $54 million
(2024: $52 million).
5.1. Net income or gains on investments and other financial instruments
2025 2024
$m $m
Net gains on seeding investments portfolio 37 47
Consolidated fund entities: gross-up of net gains on investments 43 32
Foreign exchange movements 3 6
Net gains on fund investments held for deferred compensation arrangements and 1 3
other investments
Net income or gains on investments and other financial instruments 84 88
5.2. Consolidation of investments in funds
At 31 December 2025, our interests in 29 (2024: 36) 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:
2025 2024
$m $m
Balance sheet
Cash and cash equivalents 118 229
CLO assets(1) 1,457 1,453
Other transferable securities(1) 832 702
Fee and other receivables 5 6
Investment property - 12
Trade and other payables (34) (20)
CLO liabilities (1,402) (1,366)
Net assets of consolidated fund entities 976 1,016
Third-party interest in consolidated funds (544) (553)
Net investment held by Man Group 432 463
Income statement
Net gains on investments(2) 75 62
Rental income(3) - 1
Management fee expenses(4) (10) (9)
Performance fee expenses(4) (2) (2)
Other costs(5) (4) (12)
Net gains of consolidated fund entities 59 40
Third-party share of gains relating to interests in consolidated funds (27) (10)
Net gains attributable to net investment held by Man Group 32 30
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:
2025 2024
$m $m
Cost at beginning of the year 12 34
Additions - 8
Disposals (12) (30)
Cost at end of the year - 12
Accumulated depreciation and impairment at beginning of the year - (4)
Disposals - 2
Reversal of impairment - 2
Accumulated depreciation and impairment at end of the year - -
Net book value at beginning of the year 12 30
Net book value at end of the year - 12
Investment property held by consolidated fund entities was fully disposed of
in 2025. The fair value of investment property held by consolidated fund
entities of $16 million at 31 December 2024 was 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
2025 2024
$m $m
Salaries 225 219
Variable cash compensation 264 294
Deferred compensation: share-based payment charge 45 39
Deferred compensation: fund product-based payment charge 93 81
Social security costs 60 54
Pension costs (Note 14) 20 19
Compensation costs 707 706
Comprising:
Fixed compensation: salaries and associated social security costs, and pension 274 264
costs
Variable compensation: variable cash compensation, deferred compensation and 433 442
associated social security costs
The unamortised deferred compensation at 31 December 2025 is $121 million
(2024: $103 million) and has a weighted average remaining vesting period of
1.9 years (2024: 2.1 years).
We recognised $30 million of restructuring costs as part of significant
restructuring programmes in the year ended 31 December 2025 (2024: $22
million), 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.
2025 2024
Investment management 467 456
Sales and marketing 295 288
Infrastructure and support 555 575
Technology 453 483
Average headcount 1,770 1,802
Headcount at 31 December 1,719 1,777
6.2. Other employment-related expenses
Other employment-related expenses of $25 million (2024: $38 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, $7 million (2024: $10 million)
relates to the proportionate share of profits earned in the year.
The associated employment-related payables at 31 December 2025 of $72 million
(2024: $56 million) are accounted for as cash-settled share-based payments
(Note 26).
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
2025 2024
Discount rate
- Management fee earnings 11% 11%
- Performance fee earnings 17% 17%
Sensitivity analysis
The valuation of 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 2025
Discount rate decreased/(increased) by 5% 27 (18)
Forecast growth in future cash flows increased/(decreased) by 50% 12 (9)
6.3. Other costs
2025 2024
$m $m
Costs associated with legal claims (Note 29) 32 4
Technology and communications 30 27
Staff benefits 27 23
Audit, tax, legal and other professional fees 25 27
Occupancy 19 18
Other cash costs 19 14
Temporary staff, recruitment, consultancy and managed services 13 15
Travel and entertainment 12 12
Marketing and sponsorship 7 7
Insurance 5 5
Acquisition-related costs (Note 10) 6 -
Lease-related costs 1 -
Other costs - consolidated fund entities (Note 5.2) 4 12
Other costs before depreciation and amortisation 200 164
Depreciation of right-of-use lease assets (Note 8.2) 15 15
Depreciation of leasehold improvements and equipment (Note 17) 15 11
Amortisation of software intangible assets (Note 18) 28 25
Total other costs 258 215
Auditor remuneration
2025 2024
$m $m
Fees payable to the external auditor for the audit of the consolidated 1.1 1.0
financial statements
Other services:
The audit of the Company's subsidiaries pursuant to legislation 3.2 3.2
Audit-related assurance services 0.5 0.5
All other services 0.5 0.4
Total auditor's remuneration 5.3 5.1
7. Finance income and finance expense
2025 2024
$m $m
Finance income
Interest on cash deposits 8 12
Other finance income 4 -
Unwind of net investment in finance lease discount (Note 8.1) 4 3
Total finance income 16 15
Finance expense
Unwind of lease liability discount (Note 8.2) (10) (11)
Interest expense on total return swaps and sale and repurchase agreements (11) (15)
Other finance expense (13) (12)
Total finance expense (34) (38)
Net finance expense (18) (23)
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:
2025 2024
$m Operating leases Finance Operating Finance
leases leases leases
Within one year - 6 1 3
Between one and two years 1 11 - 5
Between two and three years 2 12 1 10
Between three and four years 2 12 1 11
Between four and five years 2 12 - 11
Between five and ten years 7 54 - 54
Between ten and 15 years - - - 9
14 107 3 103
At 31 December 2025, the contractual undiscounted minimum finance lease
payments receivable can be reconciled to the net investment in finance lease
as follows:
2025 2024
$m $m
Undiscounted lease payments 107 103
Less: unearned finance income (23) (26)
Net investment in finance lease 84 77
Movements in the net investment in finance lease are as follows:
2025 2024
$m $m
At beginning of the year 77 67
Additions - 9
Cash receipts (3) -
Unwind of finance lease discount 4 3
Foreign exchange movements 6 (2)
At end of the year 84 77
Fair value of investment property
2025 2024
$m $m
Value in use 20 16
Less:
Carrying value (13) (13)
Headroom 7 3
Sub-lease rental income from operating leases was $2 million in 2025 (2024: $2
million). Operating expenses of $nil (2024: $1 million) arising from
investment property that did not generate rental income during the period are
included within other costs.
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
2025 2024
$m Leasehold property Investment property Total Leasehold property Investment property Total
Cost at beginning of the year 188 51 239 199 101 300
Acquired through business combinations (Note 10) 13 - 13 - - -
Additions 17 1 18 5 - 5
Disposals (10) - (10) (2) (50) (52)
Remeasurement on modification 2 - 2 (14) - (14)
Cost at end of the year 210 52 262 188 51 239
Accumulated depreciation and impairment at beginning of the year (98) (38) (136) (87) (84) (171)
Disposals 10 - 10 2 48 50
Depreciation (14) (1) (15) (13) (2) (15)
Accumulated depreciation and impairment at end of the year (102) (39) (141) (98) (38) (136)
Net book value at beginning of the year 90 13 103 112 17 129
Net book value at end of the year 108 13 121 90 13 103
Lease liability
The maturity of our contractual undiscounted cash flows for the lease
liability is as follows:
2025 2024
$m $m
Within one year 38 19
Between one and five years 139 120
Between five and ten years 140 138
Between ten and 15 years 9 28
Undiscounted lease liability at end of the year 326 305
Discounted lease liability at end of the year 271 248
Of the total discounted lease liability at 31 December 2025 of $271 million
(2024: $248 million), $27 million (2024: $10 million) is expected to be
settled within 12 months.
Movements in the lease liability are as follows:
2025 2024
$m $m
At beginning of the year 248 283
Acquired through business combinations (Note 10) 13 -
Additions 5 5
Cash payments (37) (33)
Proceeds from lease modification 15 -
Unwind of lease liability discount 10 11
Remeasurement on modification 2 (14)
Foreign exchange movements 15 (4)
At end of the year 271 248
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.
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.
2025 2024
$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 2,455 974 103 3,532
Acquired through business combinations (Note 10) 25 34 - 59 - - - -
Cost at end of the year 2,480 1,008 103 3,591 2,455 974 103 3,532
Accumulated amortisation and impairment at beginning of the year (1,836) (847) (97) (2,780) (1,836) (824) (96) (2,756)
Amortisation - (11) (1) (12) - (23) (1) (24)
Impairment - - (5) (5) - - - -
Accumulated amortisation and impairment at end of the year (1,836) (858) (103) (2,797) (1,836) (847) (97) (2,780)
Net book value at beginning of the year 619 127 6 752 619 150 7 776
Net book value at end of the year 644 150 - 794 619 127 6 752
Goodwill impairment assumptions
Key assumptions at 31 December 2025 and 31 December 2024 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% 17%
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.
2025 2024
$m $m
Value in use 5,120 5,090
Less:
Carrying value of CGUs (910) (870)
Headroom 4,210 4,220
Discount rates (post-tax) Multiples (post-tax)
Sensitivity analysis at 31 December 2025 Compound average Management fee/ Management fee/
annualised growth in AUM performance fee performance fee
Key assumption stressed to: 6% 4% (4)%(1) 10%/16% 12%/18% 14.0x/6.5x 12.0x/4.5x
Modelled headroom ($m) 4,210 3,690 1,800 4,330 4,090 4,620 3,800
Increase/(reduction) in value in use ($m) (520) (2,410) 120 (120) 410 (410)
Discount rates (post-tax) Multiples (post-tax)
Sensitivity analysis at 31 December 2024 Compound average Management fee/ Management fee/
annualised growth in AUM performance fee performance fee
Key assumption stressed to: 6% 4% (4)%(1) 10%/16% 12%/18% 14.0x/6.5x 12.0x/4.5x
Modelled headroom ($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)
Note:
1. Stressed by 10%, as opposed to the point of impairment, given an
impairment scenario is not reasonably foreseeable.
Impairment of acquired intangibles
During the year, the acquired intangible relating to the Varagon brand with a
carrying value of $5 million was fully impaired following the retirement of
the brand in the year.
10. Acquisitions
On 1 October 2025, Man Group acquired 100% of the equity in Bardin Hill for
consideration of $81 million comprising cash and estimated contingent
consideration of $47 million and $34 million respectively. Bardin Hill is an
opportunistic and performing credit manager with significant expertise in
managing credit strategies and a sophisticated global client base including
pension funds, endowments, foundations, insurance companies and consultants.
The interests acquired include 100% of the economic interests in Bardin Hill,
except for entitlements to the carried interest in certain funds, which remain
with the sellers and are therefore recognised as carried interest payable
within trade and other payables in the consolidated balance sheet.
The provisional values recognised at the date of acquisition were as follows:
$m Note Book value Fair value Fair value
adjustments
Cash and cash equivalents 3 - 3
Fee and other receivables 6 71 77
Investments in fund products and other investments 15 - 15
Leasehold improvements and equipment 17 3 - 3
Leasehold property - right-of-use lease assets 8.2 13 - 13
Acquired intangibles 9 - 34 34
Trade and other payables 19 (8) (53) (61)
Borrowings 15 (15) - (15)
Lease liability 8.2 (13) - (13)
Net assets acquired 4 52 56
Goodwill on acquisition 9 25
Total consideration 81
Comprising:
Cash 47
Contingent consideration 34
The acquisition-date values presented have been determined on a provisional
basis due to the proximity of the acquisition date to the reporting date.
$41 million of the $47 million cash consideration was paid at completion, with
$6 million outstanding at 31 December 2025. Contingent consideration includes
$18 million relating to the portion of the performance fees crystallising at
31 December 2025 which were earned in the pre-acquisition period, and which
are payable to the sellers in 2026. The remainder of the contingent
consideration payable for the acquisition relates to earnout payments which
will be paid in future years, the value for which is based on future growth of
the business. The earnout payments are capped at $70 million.
Fair value adjustments include the recognition of intangible assets comprising
investment management agreements and related customer relationships. These
intangible assets are recognised at the present value of the future cash flows
expected to be generated and are amortised on a straight-line basis over their
expected useful lives of 11 years. No deferred tax liability has been
recognised on acquisition as the amortisation of intangible assets is
tax-deductible in the US.
Also included within fair value adjustments are carried interest receivable
and payable of $53 million which are required to be recognised at fair value
on the acquisition balance sheet. The receivable represents the fair value of
Man Group's contractual right to receive performance-based fees (carried
interest) from the underlying investment funds. A corresponding liability of
$53 million has been recognised, representing the fair value of our obligation
to pay a portion of the carried interest to the sellers under the terms of the
acquisition agreement and the remainder to employees. This liability
represents amounts that will become payable as and when the underlying carried
interest is realised from the funds. Pre-acquisition performance fees of $18
million that are due to the sellers on crystallisation are also included
within fair value adjustments.
The goodwill arising from the acquisition represents the value of the combined
workforce, the enhancement of our credit platform by adding opportunistic and
performing credit strategies and the expansion of our footprint in the US. The
goodwill is expected to be fully tax-deductible.
Acquisition costs of $6 million, primarily relating to professional fees, are
included within other costs and do not form part of goodwill.
Revenues and pre-tax profit for the Bardin Hill business from acquisition to
31 December 2025 were $11 million and $2 million respectively. If Bardin Hill
had been acquired at the beginning of the year, the total revenue and pre-tax
profit for the year attributable to Bardin Hill would have been $52 million
and $23 million respectively.
11. 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.
2025 2024
$m $m
At beginning of the year 8 11
Return of capital - (1)
Share of post-tax loss (2) (2)
At end of the year 6 8
12. 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.
12.1 Tax expense
Factors affecting the tax expense for the year
The majority of our profits in the period were earned in the UK and the US.
Our tax expense is higher than (2024: same as) the amount that would arise
using the theoretical tax rate applicable to our profits as follows:
2025 2024
$m $m
Profit before tax 257 398
Theoretical tax expense at UK rate: 25% (2024: 25%) 64 100
Effect of:
Overseas tax rates different to UK (6) (2)
Adjustments to tax charge in respect of previous years 3 1
Derecognition/(recognition) of US deferred tax assets 11 (1)
Recognition of other deferred tax assets (3) (6)
Revaluation of acquisition-related liabilities 11 1
Other 2 7
Tax expense 82 100
The tax expense for the year comprises the following:
2025 2024
$m $m
Current tax
UK corporation tax on profits 38 76
Foreign tax 35 16
Adjustments to tax charge in respect of previous years (2) (2)
Current tax expense 71 90
Deferred tax
Origination and reversal of temporary differences 6 7
Adjustments to tax charge in respect of previous years 5 3
Deferred tax expense 11 10
Total tax expense 82 100
The effective tax rate in the year was 32% (2024: 25%).
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 and the mix of income
and expenses earned and incurred by jurisdiction.
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.
12.2 Current tax assets and liabilities
The movements in our net current tax assets/liabilities are as follows:
2025 2024
$m $m
Net current tax asset at beginning of the year 14 12
Charge to the consolidated income statement (71) (90)
Credit to equity 3 3
Tax paid 65 83
Other balance sheet movements 10 7
Foreign currency translation 3 (1)
Net current tax asset at end of the year 24 14
Comprising:
Current tax assets 28 17
Current tax liabilities (4) (3)
12.3 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 2024 57 2 13 46 - 10 128
Credit/(charge) to consolidated income statement 12 (4) (1) (21) 2 2 (10)
Credit to other comprehensive income 1 - - - - - 1
Charge to equity (2) - - - - - (2)
At 31 December 2024 68 (2) 12 25 2 12 117
Credit/(charge) to consolidated income statement 2 (2) (9) (10) 1 7 (11)
Charge to equity (2) - - - - - (2)
Foreign currency translation 2 - - - - - 2
At 31 December 2025 70 (4) 3 15 3 19 106
The gross amounts of tax losses for which deferred tax assets have not been
recognised are as follows:
2025 2024
$m $m
United States 204 24
Switzerland 6 19
Hong Kong 1 4
China - 1
Total 211 48
Of the total $211 million (2024: $48 million) unrecognised available gross
deferred tax assets, $6 million (2024: $19 million) will expire between 2027
and 2029, $204 million (2024: $24 million) will expire by 2038 and $1 million
(2024: $5 million) have no expiry.
US deferred tax assets
We have recognised accumulated deferred tax assets in the US of $64 million
(2024: $76 million) that will be available to offset future taxable profits.
At 31 December 2025, deferred tax assets relating to $14 million of the
available US state and city tax losses (2024: $2 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. A change in the
apportionment of forecast taxable profits by state has resulted in the
derecognition of $11 million of the available US deferred tax assets during
the year.
Following the utilisation of our federal tax losses, we are now liable to tax
on any taxable profits we generate in the US.
US net deferred tax assets 2025 2024
$m $m
Recognised
At beginning of the year 76 86
(Charge)/credit to consolidated income statement:
(Derecognition)/recognition of available tax assets (11) 1
Utilisation (1) (11)
At end of the year 64 76
Unrecognised
At beginning of the year 2 3
Derecognition/(recognition) of available tax assets 11 (1)
Other movements 1 -
At end of the year 14 2
13. Earnings per share (EPS)
Movements in the number of ordinary shares in issue and the shares used to
calculate basic and diluted EPS are provided below.
2025 2024
Total Weighted Total Weighted
number average number average
Number of shares at beginning of year 1,273,949,460 1,273,949,460 1,313,349,959 1,313,349,959
Cancellation of own shares held in Treasury (44,588,231) (17,713,133) (39,400,499) (31,003,671)
Number of shares at end of the year 1,229,361,229 1,256,236,327 1,273,949,460 1,282,346,288
Shares held in Treasury share reserve (78,091,573) (86,191,256) (84,044,723) (86,618,732)
Man Group plc shares held by Employee Trust (33,622,391) (34,303,729) (35,203,028) (35,670,938)
Basic number of shares 1,117,647,265 1,135,741,342 1,154,701,709 1,160,056,618
Dilutive impact of:
Employee share awards 28,774,398 28,072,378
Employee share options 361,628 946,849
Dilutive number of shares 1,164,877,368 1,189,075,845
2025 2024
Statutory profit ($m) 175 298
Basic EPS 15.4¢ 25.7¢
Diluted EPS 15.0¢ 25.1¢
14. Pension
Accounting policy
We operate multiple defined contribution plans in the regions in which we
operate and two (2024: 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 $18 million for the year to 31
December 2025 (2024: $17 million).
Defined benefit plans
At 31 December 2025, the UK Plan comprised 85% (31 December 2024: 88%) of our
total defined benefit pension obligations.
2025 2024
$m $m
Present value of funded obligations (284) (259)
Fair value of plan assets 298 272
Net pension asset 14 13
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 2025 2024
Assets Liabilities Net pension asset/ (liability) Assets Liabilities Net pension asset/
(liability)
At beginning of the year 272 (259) 13 304 (292) 12
Amounts recognised in profit and loss:
Current service cost to employer - (2) (2) - (1) (1)
Interest income/(cost) 14 (13) 1 12 (12) -
Running costs (1) - (1) (1) - (1)
Amounts recognised in other comprehensive income:
Remeasurements due to:
- changes in financial assumptions - 3 3 - 23 23
- changes in demographic assumptions - (1) (1) - 2 2
- experience adjustments - (3) (3) - - -
- actual return on plan assets less interest 1 - 1 (23) - (23)
on plan assets
Employer contributions (including plan funding) 2 - 2 1 - 1
Employee contributions 1 (1) - 1 (1) -
Foreign currency translation 23 (22) 1 (7) 7 -
Benefit payments (14) 14 - (15) 15 -
At end of the year 298 (284) 14 272 (259) 13
Actuarial assumptions used
The most significant actuarial assumptions used in the valuations of the two
plans are as follows:
UK Plan Swiss Plan
2025 2024 2025 2024
% p.a. % p.a. % p.a. % p.a.
Discount rate 5.5 5.5 1.3 1.1
Price inflation 2.8 3.2 1.1 1.0
Future salary increases - - 1.1 1.0
Pension payment increases 3.6 3.7 - -
Deferred pensions increases 5.0 5.0 - -
Interest crediting rate - - 1.8 1.3
Social security increases - - 1.0 1.0
Illustrative life expectancy assumptions are set out in the table below.
UK Plan Swiss Plan
Years 2025 2024 2025 2024
Life expectancy of male aged 60 at year-end 26.8 26.5 28.1 27.9
Life expectancy of male aged 60 in 20 years 28.3 28.0 30.4 30.3
Life expectancy of female aged 60 at year-end 29.5 29.4 29.9 29.8
Life expectancy of female aged 60 in 20 years 30.9 30.8 31.9 31.8
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 2025 Increase in obligation at 31 December 2024
$m UK Plan Swiss Plan UK Plan Swiss Plan
Discount rate decreased by 0.5% p.a. 13 3 13 3
Inflation rate increased by 0.5% p.a. 4 - 4 -
One-year increase in assumed life expectancy 9 - 8 -
Pension asset investments
The assets held by the two plans are as follows:
UK Plan Swiss Plan
$m 2025 2024 2025 2024
Bonds 105 92 16 15
Liability-driven investments (LDI) 52 43 - -
Fund investments 44 43 5 3
Index-linked government bonds 31 29 - -
Equities - - 15 10
Property - - 5 2
Cash 24 33 1 2
Other - - - -
Total assets 256 240 42 32
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.
At 31 December 2025, the UK Plan's hedging assets continued to hedge around
100% of interest rates and inflation on the technical provisions basis (2024:
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 2025, around
29% of the UK Plan assets relate to those with quoted prices and 71% with
unquoted prices (2024: around 28% quoted and 72% unquoted). The UK Plan does
not invest directly in property occupied by Man Group or our shares.
15. 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 primarily comprise amounts drawn under committed revolving credit
facilities. These 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.
Also included within borrowings are amounts payable to third parties who hold
indirect interests in certain CLOs that we manage. The risk retention assets
in these CLOs were partially funded through a series of interest-bearing term
loans, with principal amounts outstanding also presented within borrowings.
These borrowings are measured at fair value through profit and loss.
15.1 Liquidity
2025 2024
$m $m
Cash held with banks 96 162
Short-term deposits 22 24
Money market funds 55 39
Cash held by consolidated fund entities (Note 5.2) 118 229
Cash and cash equivalents 291 454
Less: cash held by consolidated fund entities (Note 5.2) (118) (229)
Available cash and cash equivalents 173 225
Undrawn committed revolving credit facility 800 800
Total liquidity 973 1,025
15.2 Borrowings
2025 2024
$m $m
Amounts drawn under committed revolving credit facility - -
Other borrowings 13 -
Total borrowings 13 -
Our $800 million committed revolving credit facility (RCF) was put in place in
December 2023 as a five-year facility. As both one-year extension options have
been exercised, the facility is scheduled to mature in December 2030.
Other borrowings relate to amounts outstanding under term loans which have
partially funded risk retention assets in CLOs managed by Bardin Hill and
amounts payable to third parties who hold indirect interests in these CLOs.
These borrowings have maturity dates between November 2026 and June 2029. The
borrowings in respect of this arrangement at the date of acquisition of Bardin
Hill were $15 million, as set out in Note 10.
16. 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 and carried interest receivable (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.
2025 2024
$m $m
Financial assets at amortised cost
Fee receivables 37 26
Accrued income 366 258
Collateral posted with derivative counterparties 38 47
Receivables from Open-Ended Investment Company (OEIC) funds 72 46
Other fund receivables 31 28
Other receivables 20 48
Receivables relating to consolidated fund entities (Note 5.2) 5 6
569 459
Financial assets at fair value through profit or loss
Derivatives 2 5
Carried interest receivable (Note 10) 53 -
55 5
Non-financial assets
Prepayments 33 28
33 28
Total fee and other receivables 657 492
Included in fee and other receivables at 31 December 2025 are balances of $59
million (2024: $2 million) which are expected to be settled after more than 12
months.
17. 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.
2025 2024
$m Leasehold improvements Equipment Total Leasehold improvements Equipment Total
Cost at beginning of the year 71 76 147 73 67 140
Acquired through business combinations (Note 10) 3 - 3 - - -
Additions 8 10 18 3 15 18
Disposals (1) (9) (10) (5) (6) (11)
Cost at end of the year 81 77 158 71 76 147
Accumulated depreciation and impairment at beginning (39) (50) (89) (39) (48) (87)
of the year
Disposals - 9 9 3 6 9
Depreciation (5) (10) (15) (3) (8) (11)
Accumulated depreciation and impairment at end (44) (51) (95) (39) (50) (89)
of the year
Net book value at beginning of the year 32 26 58 34 19 53
Net book value at end of the year 37 26 63 32 26 58
18. 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
over a period longer than 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.
2025 2024
$m $m
Cost at beginning of the year 192 172
Additions 28 28
Disposals (5) (8)
Cost at end of the year 215 192
Accumulated amortisation at beginning of the year (135) (118)
Amortisation (28) (25)
Disposals 5 8
Accumulated amortisation at end of the year (158) (135)
Net book value at beginning of the year 57 54
Net book value at end of the year 57 57
19. 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, carried interest payable and put options over
non-controlling interests in subsidiaries, which are measured at fair value
through profit and loss.
2025 2024
$m $m
Financial liabilities at amortised cost
Trade payables 5 5
Compensation accruals 432 426
Other accruals 113 101
Payables to OEIC funds 72 45
Payables under repo arrangements 4 16
Tax and social security 21 16
Other payables 10 6
Payables relating to consolidated fund entities (Note 5.2) 34 20
691 635
Financial liabilities at fair value through profit or loss
Derivatives 4 6
Carried interest payable (Note 10) 53 -
Contingent consideration 61 4
Put options over non-controlling interests in subsidiaries 34 10
152 20
Total trade and other payables 843 655
20. 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, except for leasehold restoration
provisions which are expected to be settled at the end of the respective
leases.
$m Leasehold restoration Ongoing Total
claims
At 1 January 2024 3 13 16
Additions - 1 1
Unused amounts reversed (1) - (1)
At 31 December 2024 2 14 16
Additions 18 1 19
Foreign currency translation - 1 1
At 31 December 2025 20 16 36
21. 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 33/7¢ 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.
2025 2024
Total Nominal Total Nominal
number value number value
$m $m
Number of shares at beginning of year 1,273,949,460 44 1,313,349,959 45
Cancellation of own shares held in Treasury (44,588,231) (2) (39,400,499) (1)
Number of shares at end of the year 1,229,361,229 42 1,273,949,460 44
Share buybacks 2025 2024
Shares repurchased during the year (including costs) ($m) 100 50
Average purchase price (pence) 182.7 248.8
Shares repurchased (million) 41 16
Accretive impact on diluted earnings per share (%) 1.9 0.7
The $100 million share repurchase programme announced in February 2025 was
completed during the year (2024: $50 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 3.6% of issued share capital
(excluding Treasury shares) as at 31 December 2025 and shares held in Treasury
which were cancelled during the year represent 3.9% of issued share capital
(excluding Treasury shares). At 25 February 2026, we had an unexpired
authority to repurchase up to 92,424,602 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
115,151,767 ordinary shares, representing 10% of the issued share capital
(excluding Treasury shares) at 25 February 2026.
The Employee Trust
At 31 December 2025, the Employee Trust held 33,622,391 Man Group plc ordinary
shares (2024: 35,203,028).
In 2025, we funded $76 million via contribution or loan (2024: $65 million) to
enable the Employee Trust to meet its current period obligations. At 31
December 2025, the net assets of the Employee Trust amounted to $211 million
(2024: $202 million). These assets include 33,622,391 (2024: 35,203,028)
ordinary shares in the Company, and $104 million of fund product investments
(2024: $87 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 2025 of $26 million (2024: $22 million) comprise
share premium, capital redemption reserves and cash flow hedge reserves.
22. 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 2025 2024
$m $m
Cash flows from operating activities
Statutory profit 175 298
Adjustments for:
Share-based payment charge 6.1 45 39
Fund product-based payment charge 6.1 93 81
Other employment-related expenses 6.2 18 28
Net finance expense 7 18 23
Tax expense 12.1 82 100
Depreciation of leasehold improvements and equipment 17 15 11
Depreciation of right-of-use lease assets 8.2 15 15
Gain on disposal of investment property - right-of-use lease assets - (3)
Amortisation and impairment of acquired intangibles 9 17 24
Amortisation of software intangible assets 18 28 25
Share of post-tax loss of associates 11 2 2
Revaluation of acquisition-related liabilities 45 4
Realised gains on cash flow hedges (17) (22)
Foreign exchange movements (11) 8
Other non-cash movements (8) (10)
517 623
Changes in working capital(1):
Increase in fee and other receivables (75) (29)
(Increase)/decrease in other financial assets including consolidated fund (23) 211
entities(2)
Decrease in trade and other payables (81) (36)
Cash generated from operations 338 769
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 $111 million of restricted net cash outflows (2024: $133
million net cash inflows) relating to consolidated fund entities (Note 5.2).
23. 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.
2025 2024
¢/share $m ¢/share $m
Final dividend paid for the previous financial year to 31 December 11.6 134 10.7 127
Interim dividend paid for the six months to 30 June 5.7 64 5.6 65
Dividends paid 198 192
Proposed final dividend for the financial year to 31 December 11.5 129 11.6 134
24. 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.
Carried interest
Performance fees in the form of carried interest receivables and their related
carried interest payables acquired as part of a business combination are
recognised at their fair value at acquisition date and remeasured at fair
value at each reporting date. The recognition of carried interest earned in
the ordinary course of business is constrained in line with our revenue
recognition policy.
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:
2025
$m Note Level 1 Level 2 Level 3 Not at fair value Total
Financial assets at amortised cost
Finance lease receivable 8.1 - - - 84 84
Cash and cash equivalents 15 - - - 291 291
Fee and other receivables 16 - - - 569 569
- - - 944 944
Financial assets at fair value
Fee and other receivables 16 - 2 53 - 55
Investments in fund products and other investments 5 - 217 31 - 248
Investments in loans 5 - - 2 - 2
Investments in consolidated funds: CLO assets 5.2 - 1,301 156 - 1,457
Investments in consolidated funds: other transferable securities 5.2 434 368 30 - 832
434 1,888 272 - 2,594
Total financial assets 434 1,888 272 944 3,538
Financial liabilities at amortised cost
Trade and other payables 19 - - - (691) (691)
Lease liability 8.2 - - - (271) (271)
- - - (962) (962)
Financial liabilities at fair value
Borrowings 15 - - (13) - (13)
Trade and other payables 19 - (4) (148) - (152)
CLO liabilities - consolidated funds 5.2 - (1,402) - - (1,402)
Third-party interest in consolidated funds 5.2 - (544) - - (544)
- (1,950) (161) - (2,111)
Total financial liabilities - (1,950) (161) (962) (3,073)
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 15 - - - 454 454
Fee and other receivables 16 - - - 459 459
- - - 990 990
Financial assets at fair value
Fee and other receivables 16 - 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 19 - - - (635) (635)
Lease liability 8.2 - - - (248) (248)
- - - (883) (883)
Financial liabilities at fair value
Trade and other payables 19 - (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)
The movements in Level 3 financial assets and liabilities held at fair value
are as follows:
2025 2024
$m Assets Liabilities Assets Liabilities
At beginning of the year 291 (14) 158 (12)
Transfers into Level 3 - - 3 -
Additions 437 (102) 166 -
Charge to consolidated income statement(1) (2) (45) (1) (2)
Sales or settlements (392) - (137) -
Change in consolidated fund entities held (62) - 102 -
At end of the year 272 (161) 291 (14)
Note:
1. Included within net income or gains on investments and other
financial instruments. Includes net unrealised losses of $47 million (2024: $3
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 assets also include carried interest
receivable which is valued based on the NAV of the underlying funds.
Level 3 financial liabilities comprise loans, contingent consideration
payable, carried interest payable and put options over non-controlling
interests. The valuations of the contingent consideration payable for the
acquisition of Asteria, capped at $57 million, and the put option over the
non-controlling interests assume annualised growth in revenue of up to 11%.
The valuation of the contingent consideration payable for the acquisition of
Bardin Hill assumes annualised growth in revenue of up to 9%. Carried interest
payable is valued at the equal and opposite of carried interest receivable.
Sensitivity analysis
A 5% increase/decrease in the valuations of Level 3 financial assets at 31
December 2025 would result in a $14 million increase/decrease in their fair
value.
The table below illustrates the impact of changing those unobservable inputs
to the valuations of contingent consideration and put options over
non-controlling interests in relation to the acquisitions of Asteria and
Bardin Hill that most significantly impact the fair value of the liabilities
at 31 December 2025.
Increase/(decrease)
in liability
$m 2025
Asteria forecast annualised growth in future revenues increased by 22 (7)
150%/(decreased by 50%)
Bardin Hill forecast annualised growth in future revenues increased by 8 (15)
87%/(decreased by 87%)
25. 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 17 and 18.
25.1 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
2025 2024
$m $m
Notional value of derivatives at 31 December
Assets 16 104
Liabilities (58) (12)
Net (liabilities)/assets (42) 92
For the year ended 31 December
Loss recognised in the consolidated income statement (13) (2)
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 $60 million at 31 December 2025 (2024:
$67 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
2025 2024
$m $m
Notional value of derivatives at 31 December
Assets 126 264
Liabilities (82) (152)
Net assets 44 112
For the year ended 31 December
Gain/(loss) before the impact of hedging 6 (5)
(Loss)/gain on hedging instruments (3) 11
Gain recognised in the consolidated income statement after the impact of 3 6
hedging
The table below reflects the currency profile of our net foreign currency
(non-USD) monetary assets and liabilities after the impact of hedging:
2025 2024
$m $m
Sterling (118) (112)
Swiss Franc (70) (19)
Euro 29 4
Australian Dollar 36 7
Other 14 20
Total (109) (100)
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 $11 million (2024: $10 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 2025 a 100 basis point increase/decrease in these
rates, with all other variables held constant, would have resulted in a nil
(2024: nil) increase/decrease in net interest expense.
25.2 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 2025, the $173 million available cash and cash equivalents
balance was held with 18 banks (2024: $225 million with 19 banks).
Credit ratings of banks 2025 2024
$m $m
AAA 38 39
AA 74 130
A 55 50
BB 6 6
Total 173 225
The single largest counterparty bank exposure of $46 million is held with an
AA- rated bank (2024: $56 million held with an AA- rated bank).
As in 2024, 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 2025 (2024:
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
finance lease receivables 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 2025 (2024: 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
2025 was $79 million (2024: $89 million). The creditworthiness of the asset
portfolios is reflected in the fair value of our consolidated CLO assets.
25.3 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 2025, we had total liquidity of $973 million (2024: $1,025
million) comprising $173 million (2024: $225 million) of available cash and
cash equivalents and $800 million (2024: $800 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 2030. Our other borrowings have maturity dates
between November 2026 and June 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 $1,402 million (2024:
$1,366 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. Other borrowings of $13 million do not
present a liquidity risk to Man Group as the amounts repayable are directly
linked to the value of the CLO note holdings they have funded.
Maturity analysis
Trade and other payables can be analysed according to their contractual
maturity dates on an undiscounted cash flow basis as follows:
2025 2024
$m $m
Within one year 666 600
Between one and three years 178 41
After three years 19 20
863 661
A maturity analysis of our undiscounted lease liabilities is set out in Note
8.2.
25.4 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 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.
26. 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 12/03/2025 - 13/05/2025 08/03/2024 -10/12/2024 12/03/2025 08/03/2024
Share awards granted in the year 15,502,845 12,128,097 1,991,172 1,674,203
Weighted average fair value per share award granted ($) 2.7 3.2 2.7 3.2
Movements in the number of equity-settled share awards outstanding are as
follows:
2025 2024
Share awards outstanding at beginning of the year 41,729,994 42,317,900
Granted 17,494,017 13,802,300
Forfeited (1,693,830) (2,899,848)
Exercised (12,646,775) (11,490,358)
Share awards outstanding at end of the year 44,883,406 41,729,994
Share awards exercisable at end of the year 722,923 158,944
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:
2025 2024
Grant date 02/09/2025 03/09/2024
Weighted average share price at grant date ($)(1) 2.2 2.9
Weighted average exercise price at grant date ($)(2) 1.8 2.3
Share options granted in the period 2,558,282 1,447,200
Vesting period (years) 3-5 3-5
Expected share price volatility (%) 30 30
Dividend yield (%) 7 5
Risk-free rate (%) 4.0 3.9
Expected option life (years) 3.6 3.7
Number of options assumed to vest 1,951,476 1,080,188
Average fair value per option granted ($) 0.5 0.7
Notes:
1. Sterling share price at grant date each year of £1.6 and £2.2
respectively.
2. Sterling exercise price each year of £1.3 and £1.8 respectively.
The expected share price volatility is based on historical volatility over the
past five years. The expected option life is the average expected period to
exercise. The risk-free rate of return is the yield on zero-coupon UK
government bonds of a term consistent with the assumed option life.
Movements in the number of share options outstanding are as follows:
2025 2024
Number Weighted average Number Weighted average
exercise price(1) exercise price1
($ per share) ($ per share)
Share options outstanding at beginning of the year 5,310,640 2.1 5,139,138 2.1
Granted 2,588,282 1.8 1,447,200 2.2
Forfeited (1,957,386) 2.3 (476,292) 2.2
Exercised(2) (455,711) 1.8 (799,406) 1.8
Share options outstanding at end of the year 5,485,825 2.1 5,310,640 2.1
Share options exercisable at end of the year 764,887 2.5 239,978 2.1
Notes:
1. Calculated at 31 December exchange rates each year.
2. The sterling weighted average share price of options exercised was
£1.9 (2024: £2.4) (USD-equivalent $2.5 and $3.1 respectively).
The share options outstanding at year-end had expected remaining lives as
follows:
Range of exercise prices ($ per share) 2025 2024
Number of share options Weighted average expected remaining life (years) Number of Weighted average expected remaining life (years)
share options
0.00-3.00 5,485,825 2.5 5,310,640 2.5
Cash-settled share-based payments
The carrying value of the cash-settled share-based payment liability at 31
December 2025 was $72 million (2024: $56 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.
27. 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 2025 2024
Revenue Non-current assets Revenue Non-current assets
Cayman Islands 548 - 656 -
Ireland 266 - 191 -
United Kingdom and the Channel Islands 119 612 132 604
United States of America 299 400 281 346
Other countries 173 23 174 20
1,405 1,035 1,434 970
Revenue from no single fund exceeded 10% of total annual revenue in either
2025 or 2024.
28. 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 2025 2024
$m $m
Salaries and other short-term employee benefits(1) 19 23
Share-based payment charge 15 14
Fund product-based payment charge 10 15
Pension costs (defined contribution) 1 1
Total 45 53
Note:
1. Includes salary, benefits and cash bonus.
Man Group paid consortium relief to an associate entity in the current and
prior years. The amounts paid in each year were not significant.
29. 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 commenced on 3 March 2025 and is due to conclude in
March 2026. The High Court is expected to hand down its judgement in 2026. 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 are unquantified in the claim. In an amended
particulars of claim filed in August 2024, PIFSS increased the quantum of its
claim to approximately $278 million plus interest. We disputed the basis for
this inflated quantum figure and the assumptions upon which PIFSS calculated
it. PIFSS is no longer seeking this inflated sum and has reverted to seeking
compensation of $156 million (plus interest). We continue to dispute the
allegations and consider there is no merit to the claim (in respect of
liability and quantum) and are therefore vigorously and robustly defending the
proceedings.
We are subject to various other claims, assessments, regulatory enquiries and
investigations in the normal course of business. The Board does not expect
such matters to have a material adverse effect on our financial position.
30. Unconsolidated structured entities
Accounting policy
We have evaluated all exposures and concluded that where we hold an
investment, fee receivable, accrued income, or commitment with an investment
fund or a CLO, this represents an interest in a structured entity as defined
by IFRS 12 'Disclosure of Interests in Other Entities'.
Investment funds are designed so that their activities are not governed by way
of voting rights, and contractual arrangements are the dominant factor in
affecting an investor's returns. The activities of these entities are governed
by investment management agreements or, in the case of CLOs, indentures.
Our maximum exposure to loss from unconsolidated structured entities is the
sum total of any investment held, fee receivables and accrued income.
Our interest in and exposure to unconsolidated structured entities is as
follows:
2025 Total Less infrastructure mandates and consolidated Total AUM unconsolidated structured Number Fair value of investment held Fee receivables and accrued income Maximum exposure
AUM fund entities(1) entities of funds ($m) ($m) to loss
($bn) ($bn) ($bn) ($m)
Alternative
Absolute return 42.5 (0.6) 41.9 119 137 132 269
Total return 46.6 (1.5) 45.1 131 74 137 211
Multi-manager 14.5 (8.6) 5.9 18 2 15 17
Long-only
Systematic 76.2 (0.1) 76.1 119 7 126 133
Discretionary 47.8 (0.1) 47.7 57 27 42 69
Total 227.6 (10.9) 216.7 444 247 452 699
2024 Total Less infrastructure mandates and consolidated Total AUM unconsolidated Number Fair value of investment held Fee receivables Maximum
structured
exposure
AUM fund entities(1)
of funds ($m) and accrued income
entities
to loss
($bn) ($bn)
($m)
($bn) ($m)
Alternative
Absolute return 45.3 (0.5) 44.8 132 122 120 242
Total return 41.5 (1.6) 39.9 96 81 64 145
Multi-manager 14.4 (9.7) 4.7 40 2 5 7
Long-only
Systematic 38.6 (0.1) 38.5 95 4 62 66
Discretionary 28.8 (0.2) 28.6 57 21 27 48
Total 168.6 (12.1) 156.5 420 230 278 508
Notes:
1. For infrastructure mandates where we do not act as investment
manager or adviser, our role in directing investment activities is diminished
and therefore these are not considered structured entities.
Five-year record 2025 2024 2023 2022 2021
Income statement ($m)
Core net management fee revenue 1,077 1,097 963 927 877
Core performance fees 281 310 180 779 569
Core profit before tax 407 473 340 779 658
Core management fee profit before tax 294 323 280 290 266
Core performance fee profit before tax 113 150 60 489 392
Core profit 321 381 271 647 557
Statutory profit before tax 257 398 279 745 590
Statutory profit 175 298 234 608 487
Earnings per share (¢)
Statutory EPS (diluted) 15.0 25.1 19.4 45.8 33.8
Core EPS (diluted) 27.6 32.1 22.4 48.7 38.7
Core management fee EPS (diluted) 19.6 21.5 18.4 18.4 15.7
Balance sheet ($m)
Net cash and cash equivalents 278 454 136 457 387
Net assets 1,574 1,676 1,612 1,699 1,651
Net tangible assets 723 867 782 1,022 928
Other metrics
Core cash flows from operating activities before working capital 418 502 362 810 700
movements ($m)
Ordinary dividends per share (¢) 17.2 17.2 16.3 15.7 14.0
AUM ($bn) 227.6 168.6 167.5 143.3 148.6
Average headcount 1,770 1,802 1,716 1,595 1,453
USD/sterling exchange rates:
Average 0.7589 0.7826 0.8042 0.8081 0.7267
Year-end 0.7421 0.7990 0.7855 0.8276 0.7390
'Core' measures are alternative performance measures. Further details of our
alternative performance measures, including non-core items, are set out on
pages 58 to 64.
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
recurring 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 US deferred tax assets relating to the
amortisation of goodwill and acquired intangibles and the recognition and
derecognition of deferred tax assets related to accumulated tax losses in the
US are similarly excluded from core profit, with tax on core profit considered
a proxy for cash taxes paid. Previously, all movements in US deferred tax
assets were excluded from tax on core profit as we were utilising federal
accumulated tax losses. Comparatives have not been restated for this change in
definition.
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 2025 2024
$m $m
Acquisition and disposal-related:
Amortisation and impairment of acquired intangibles 9 (17) (24)
Acquisition-related costs 6.3 (6) -
Acquisition-related compensation(1) (2) -
Other employment-related expenses(2) 6.2 (18) (28)
Revaluation of acquisition-related liabilities (45) (4)
Restructuring costs 6.1 (30) (22)
Costs associated with legal claims 6.3 (32) (4)
Lease-related costs (1) -
Gain on disposal of investment property - right-of-use lease assets - 3
Share of post-tax loss of associates 11 (2) (2)
Foreign exchange movements 5.1 3 6
Non-core items (150) (75)
Notes:
1. Relates to employee retention payments agreed as part of the
acquisition.
2. 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:
2025 Core measure Reclassification Non-core items Per consolidated income statement
$m of amounts relating to consolidated
fund entities
Management and other fees( APM ) 1,136 (10) - 1,126
Performance fees( APM ) 281 (2) - 279
Revenue( APM ) 1,417 (12) - 1,405
Net income or gains on investments and other financial instruments( APM ) 38 43 3 84
Third-party share of gains relating to interests in consolidated funds - (27) - (27)
Rental income( APM ) 2 - - 2
Distribution costs (59) - - (59)
Net revenue( APM ) 1,398 4 3 1,405
Asset servicing costs (73) - - (73)
Compensation costs( APM ) (675) - (32) (707)
Other employment-related expenses( APM ) (7) - (18) (25)
Other costs( APM ) (215) (4) (39) (258)
Net finance expense (18) - - (18)
Amortisation and impairment of acquired intangibles - - (17) (17)
Share of post-tax loss of associates - - (2) (2)
Revaluation of acquisition-related liabilities - - (45) (45)
Third-party share of post-tax profits (3) - - (3)
Profit before tax( APM ) 407 - (150) 257
Tax expense( APM ) (86) - 4 (82)
Profit( APM ) 321 - (146) 175
Core basic EPS 28.3¢
Core diluted EPS 27.6¢
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¢
APM The core equivalents of these statutory measures are defined as
alternative performance measures.
Core costs of $973 million (2024: $963 million) comprise asset servicing
costs, core 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:
2025 Core measure Reclassification of Per consolidated
$m amounts relating to consolidated balance sheet
fund entities
Assets
Cash and cash equivalents( APM ) 173 118 291
Fee and other receivables( APM ) 652 5 657
Investments in fund products and other investments( APM ) 682 1,857 2,539
Investments in associates 6 - 6
Current tax asset 28 - 28
Finance lease receivable 84 - 84
Leasehold improvements and equipment 63 - 63
Leasehold property - right-of-use lease assets 108 - 108
Investment property - right-of-use lease assets 13 - 13
Software intangible assets 57 - 57
Deferred tax assets 106 - 106
Pension asset 14 - 14
Goodwill and acquired intangibles 794 - 794
Total assets 2,780 1,980 4,760
Liabilities
Trade and other payables( APM ) 809 34 843
Current tax liabilities 4 - 4
Employment-related payables to sellers of businesses acquired 72 - 72
Provisions 36 - 36
Borrowings 13 - 13
CLO liabilities - consolidated fund entities - 1,402 1,402
Third-party interest in consolidated funds - 544 544
Third-party interest in other subsidiaries 1 - 1
Lease liability 271 - 271
Total liabilities 1,206 1,980 3,186
Net assets 1,574 - 1,574
APM The core equivalents of these statutory measures are defined as
alternative performance measures.
2024 Core measure Reclassification of amounts relating Per consolidated
$m 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
Current tax liabilities 3 - 3
Employment-related payables to sellers of businesses acquired 56 - 56
Provisions 16 - 16
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
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.
2025 Core measure Reclassification of amounts relating to consolidated Non-core items Per consolidated
$m fund entities income statement
Management and other fees 1,136 (10) - 1,126
Distribution costs (59) - - (59)
Net management fee revenue 1,077 (10) - 1,067
Rental income 2 - - 2
Asset servicing costs (73) - - (73)
Compensation costs (management fee) (481) - (32) (513)
Other employment-related expenses (7) - (18) (25)
Other costs (215) (4) (39) (258)
Net finance expense (management fee) (7) - - (7)
Third-party share of post-tax profits (management fee) (2) - - (2)
Management fee profit before tax 294 (14) (89) 191
Tax expense (66)
Management fee profit 228
Core basic management fee EPS 20.1¢
Core diluted management fee EPS 19.6¢
Performance fees 281 (2) - 279
Net income or gains on investments and other financial instruments 38 43 3 84
Compensation costs (performance fee) (194) - - (194)
Net finance expense (performance fee) (11) - - (11)
Third-party share of post-tax profits (performance fee) (1) - - (1)
Performance fee profit before tax 113 41 3 157
Tax expense (20)
Performance fee profit 93
Core basic performance fee EPS 8.2¢
Core diluted performance fee EPS 8.0¢
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 (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¢
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 2025 2024
$m $m
Net gains on seeding investments portfolio 5.1 37 47
Net gains on fund investments held for deferred compensation arrangements 5.1 1 3
and other investments
Core gains on investments 38 50
Non-core items:
Consolidated fund entities: gross-up of net gains on investments 5.1 43 32
Foreign exchange movements 5.1 3 6
Net income or gains on investments and other financial instruments 84 88
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 movements in US deferred tax assets relating to the amortisation
of goodwill and acquired intangibles, and the recognition and derecognition of
deferred tax assets related to US accumulated tax losses. 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:
2025 2024
$m $m
Statutory tax expense 82 100
Tax on non-core items:
Restructuring costs 7 4
Costs associated with legal claims 9 1
Gain on disposal of investment property - right-of-use lease assets - (1)
Foreign exchange movements 1 (2)
Non-core movements in US deferred tax assets (13) (10)
Core tax expense 86 92
Comprising:
Tax expense on core management fee profit before tax 66 67
Tax expense on core performance fee profit before tax 20 25
The core tax rate is 21% for 2025 (2024: 19%).
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 2025 2024
$m $m
Cash flows from operating activities 239 648
Plus changes in working capital: 22
Increase in fee and other receivables 75 29
Increase/(decrease) in other financial assets 23 (211)
Decrease in trade and other payables 81 36
Core cash flows from operations excluding working capital movements 418 502
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 2025 2024
$m $m
Seeding investments portfolio 5 470 532
Available cash and cash equivalents 15 173 225
Borrowings 15 (13) -
Contingent consideration 19 (61) (4)
Put options over non-controlling interests in subsidiaries 19 (34) (10)
Payables under repo arrangements 19 (4) (16)
Employment-related payables to sellers of businesses acquired 6.2 (72) (56)
Other tangible assets and liabilities 264 196
Net tangible assets 723 867
Goodwill and intangibles 851 809
Shareholders' equity 1,574 1,676
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END FR FLFLTFEIEFIR
Copyright 2019 Regulatory News Service, all rights reservedRecent news on Man
See all newsREG - Man Group plc - Financial results for the year ended 2025
AnnouncementREG - Man Group plc - Directorate change
AnnouncementREG - Man Group plc - Holding(s) in Company
AnnouncementREG - Man Group plc - Holding(s) in Company
AnnouncementREG - Man Group plc - Total Voting Rights
Announcement