Full Year 2024 Man Group PLC Earnings Call Transcript
Key Points
- Man Group PLC (MNGPF) reported strong financial results for 2024, highlighting successful diversification and collaboration with sophisticated investors.
- The company delivered positive investment performance across all product categories, with an overall outperformance of 1%.
- Core management fee earnings per share increased by 17% to $0.215, and performance fee earnings per share more than doubled to $0.106 per share.
- The Board declared a final dividend of $0.116 per share, resulting in a total dividend for the year of $0.172 per share, a 6% increase compared to 2023.
- Man Group PLC (MNGPF) announced an additional $100 million share buyback, demonstrating commitment to capital returns to shareholders.
- The company experienced net outflows of $3.3 billion due to increased redemptions from institutional clients facing macroeconomic and geopolitical pressures.
- Adverse FX impacts, primarily due to US dollar strength, negatively affected financial results.
- Trend-following strategies underperformed, with AHL Evolution returning negative 6.1% due to lack of trends in fixed income and frequent market reversals.
- The mix of assets managed skewed more towards long-only strategies, leading to a decrease in run rate net management fees and net management fee margin.
- Fixed cash costs increased to $412 million, driven by the full year impact of the Varagon acquisition and targeted investments.
Good morning, everyone, and thank you for joining us today. I'm Robyn Grew, the CEO of Man Group, and I'm joined by our CFO, Antoine Forterre. As usual, I'll start with some highlights, and then Antoine will take you through the numbers. After that, I'll provide an update on the progress we made last year against our strategic priorities.
It's now been five years since COVID first spread around the world. And it seems that every year since has been one of surprises. 2024 was no different as US exceptionalism dominated the global narrative. Equities continue to rally driven by optimism around a potential soft landing for the US economy, the sustained momentum of the AI boom and Trump's pro-business agenda.
Fixed income and currencies, however, experienced a more volatile and, at times, turbulent year. Although the Fed cut interest rates 3 times, persistent inflation and oscillating expectations of monetary policy easing, that is, kept markets under pressure.
Meanwhile, commodity markets were shaped by
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