Man Group Plc, a prominent investment management firm, announced that its post-tax profit for the fiscal year of 2023 had declined by $234 million compared to the previous year's $608 million. This was primarily due to a decrease in performance fees, following an outstanding fee generation in 2022.
Earnings per share had also dipped to 19.4 cents by the end of 2023 from 45.8 cents the previous year. Pre-tax core profits stood at $340 million or 22.4 cents per share, in contrast with the previous year's $779 million or 48.7 cents per share.
Core management fee earnings per share remained consistent from last year at 18.4 cents. However, Net revenue decreased to $1.194 billion in 2023 from $1.727 billion in 2022, as an increase in management fee revenue was overshadowed by lower performance fee generation.
The company reported an overall drop of 29% in core net revenue, standing at $1.196 billion, down from $1.696 billion the year before.
Man Group posted an increase in assets under management (AUM), closing at $167.5 billion as of December 31, 2023, marking a 17% rise from $143.3 billion at the end of 2022. This growth in AUM was primarily driven by continuous positive net flows, robust investment performances in long-only strategies, and the acquisition of Varagon.
Moreover, the firm announced that its board would recommend a final dividend of 10.7 cents per share for the year 2023. This update implies a total annual dividend of 16.3 cents per share, marking a 4% increase.
The date of record for the final dividend has been set for April 12, while payments would be made on May 22. Man Group is also planning on repurchasing an additional $50 million of its shares.
