Man Group assets edge up in Q1, net flows boosted by demand for alternatives

LONDON (Reuters) - London-listed hedge fund Man Group reported more than $1 billion of net flows into its funds in the first quarter and a small increase in the value of its assets, over a period that included global banking market turmoil in March.

Man Group said its assets under management increased 1% to $144.7 billion, while net inflows from clients in the first three months of this year came in at $1.1 billion.

The company said that positive forex effects on its finances were offset by "negative performance-linked leverage movements" in the quarter.

Its absolute return strategy was the most popular investment play across the period, which saw a sharp decline in broader investor sentiment sparked by the collapse of U.S. lender Silicon Valley Bank and the emergency rescue of Switzerland's Credit Suisse.

The unit drew net inflows of $1.3 billion, while its overall altnerative investments arm drew inflows of $1.6 billion. The company's long-only arm saw net outflows of $0.5 billion.

Man Group's CEO Luke Ellis told an industry conference last month that he expected further banks to fail within two years.

Regulators globally have said their actions have stabilised the financial system, while banking stocks have broadly recovered since the bout of volatility in March.

(Reporting by Iain Withers, editing by Sinead Cruise)