UK fund manager Man Group flags near-term volatility on inflation woes

(Reuters) -UK fund manager Man Group flagged potential volatility in its inflows and outflows in the near term on Tuesday amid rising inflationary pressures, while reporting net inflows 2.7% ahead of the broader asset management industry.

Global fund managers who saw their assets under management reach record levels during the pandemic are now witnessing increasing outflows, as cautious investors steer clear of riskier investments amid Britain's inflation reaching a four-decade high.

The UK-listed fund manager's alternative strategies offering, which aims to provide diversification to conventional assets, remained robust as clients look to invest in assets that provide stability amid rising risks of a potential recession.

The company reported assets under management of $142 billion pounds, 4% lower than as at Dec. 31, hurt by negative investment performance.

The British firm reported half-year net inflows of $3.2 billion, and saw a 35.7% jump in its profit before tax to $380 million.

(Reporting by Sinchita Mitra in Bengaluru; Editing by Sherry Jacob-Phillips and Rashmi Aich)