Man Group assets grow 4% on market recovery

(Reuters) - British hedge fund manager Man Group <EMG.L> on Friday reported a 4.4% rise in funds under management, as it saw a recovery in markets after a steep selloff earlier in the year when most of the world was under coronavirus-induced lockdowns.

FUM as of September-end was $113.1 billion, higher than the $108.3 billion it reported as of June 30. Analysts at JP Morgan had estimated the September-end FUM to be $111.9 billion.

Net inflows during the three-month period was $1.7 billion, while positive investment performance was $1.7 billion.

The company, which has a trading history that spans more than 230 years, had seen an 8% fall in AUM in the first half of the year after several investors pulled out cash amid the pandemic-driven weakness in the markets.

However, markets have recovered from their March lows — when Wall Street's fear gauge <.VIX> touched levels last seen during the 2008 financial crisis — as investors have priced in the COVID-19 pandemic's economic impact.

"This (FUM growth) was driven by robust net inflows into alternatives as anticipated, as well as performance gains across both alternative and long-only strategies," Man Group Chief Executive Officer Luke Ellis said.

(Reporting by Muvija M in Bengaluru; editing by Uttaresh.V)