Man Group Plc · LSE:EMG
Man — Man Group Plc New — FY2023 Earnings Presentation
30 slides from Man's earnings presentation, Feb 29, 2024
Slide 1: Full year results 2023
Full year results 2023 Announced 29 February 2024 www.man.com LSE:EMG
Slide 2: Business update
Business update Robyn Grew Chief Executive Officer 1
Slide 3: Well-positioned for future growth
Well-positioned for future growth A technology-empowered, solutions-oriented diversified investment firm A competitive edge from combining exceptional talent and cutting-edge technology Track record of delivering strong and consistent returns to clients and shareholders Clear strategy and key priori
Slide 4: Results demonstrate the resilience of our diversified business model
Results demonstrate the resilience of our diversified business model Net inflows reflect the continued demand for our range of investment strategies $167.5bn ▪ Net inflows of $3.0 billion for the year ended 31 December 2023, 4.9% ahead of the industry1 Assets under management ▪ Asset-weighted relati
Slide 5: Positive investment performance across both alternative and long-only
Positive investment performance across both alternative and long-only Investment performance Absolute Relative1 Highlights2 ▪ TargetRisk +14.1% Alternative $1.8bn +1.9% $0.6bn +0.8% ▪ Alpha Select +10.2% ▪ Evolution +3.7% ▪ Sterling Corporate Bond +14.6% Long-only $7.9bn +16.4% $1.4bn +2.8% ▪ Underv
Slide 6: Broad-based client demand for our differentiated offering
Broad-based client demand for our differentiated offering Net flows 2022 2023 ▪ Continued client demand for alternative strategies Alternative $3.4bn $2.4bn ▪ Solutions offering continues to be a commercial differentiator ▪ Inflows despite industry headwinds Long-only $(0.3)bn $0.6bn ▪ Strong growth
Slide 7: Financial results
Financial results Antoine Forterre Chief Financial Officer 6
Slide 8: Stable management fee profitability despite the challenging environment
Stable management fee profitability despite the challenging environment ▪ Core net management fees of $963 million, 4% higher than 2022 $1,196m ▪ Core performance fees of $180 million reflecting a testing year for trend-following strategies Core net revenue ▪ Core gains on investments of $48 million
Slide 9: $167.5 billion of assets under management
$167.5 billion of assets under management AUM, $bn AUM at Investment AUM at Net flows FX & other1 31 Dec 2022 performance 31 Dec 2023 $9.7bn Absolute return 46.0 2.3 0.2 (0.8) 47.7 Investment performance Total return 28.8 1.1 1.1 11.5 42.5 Multi-manager 20.2 (1.0) 0.5 (0.3) 19.4 Alternative 95.0 2.4
Slide 10: Growth in run rate net management fees
Growth in run rate net management fees Core net management fees (NMF), $m Actuals Run rate 64 65 $963m Core NMF in 2023 1,087 963 927 917 216 177 191 176 $1,087m Run rate NMF at Dec-23 871 750 768 741 65bps 2022 2023 Dec-22 Dec-23 Run rate NMF margin Alternative Long-only Other¹ Margin, bps 1. Inclu
Slide 11: Lower performance fee generation but well-positioned for 2024
Lower performance fee generation but well-positioned for 2024 Core performance fees (PF), core gains on investments and PF eligible AUM PF eligible AUM ($bn) Core performance fees ($m) 5 year average PF ($m) 900 Core gains / (losses) on investments ($m) 80.0 $56.7bn 779 PF eligible AUM 800 70.0 700
Slide 12: Costs reflect planned investment to support growth
Costs reflect planned investment to support growth Core costs, $m 2022 2023 Change Fixed compensation 209 239 14% 50% Variable compensation 469 356 (24)% Compensation ratio Other cash costs 123 131 7% Asset servicing 58 58 - Core costs D&A 47 48 2% Net finance expense 11 21 91% 28% Other1 - 3 - Core
Slide 13: Core earnings impacted by lower core performance fees
Core earnings impacted by lower core performance fees P&L Core MF PBT, $m Core PF PBT, $m Core MF EPS, ¢ per share Core EPS, ¢ per share 18.4¢ 800 779 Core management fee EPS 26.0 700 658 600 21.0 489 500 384 392 18.4 16.0 22.4¢ 400 340 Core EPS 214 284 60 300 11.0 200 9.7 104 266 290 280 6.0 10% 10
Slide 14: Robust and highly liquid balance sheet
Robust and highly liquid balance sheet Net financial assets as at 31 December 2023, $m1 Cash Acquisition-related liabilities3 Seed investments2 Financing4 35 $555m $782 million Net financial assets 180 net tangible 185 assets (NTA)5 555 14 Strategies seeded in 2023 595 60¢ NTA per share6 Financial a
Slide 15: Consistent and significant capital returns
Consistent and significant capital returns Dividends and share repurchases, ¢ per share1 Dividends Share repurchases² Number of shares3 $313m 38.1 Shareholder returns4 33.5 2023 26.0 24.1 $1.8bn 17.8 9.7 17.2 16.1 Shareholder returns4 6.6 2019 - 2023 6.3 15.7 16.3 14.0 9.8 10.6 28% 2019 2020 2021 20
Slide 16: Supported by our disciplined capital policy
Supported by our disciplined capital policy Dividend Organic Inorganic Share payout initiatives opportunities repurchases ▪ Progressive ▪ Tactical ▪ Unchanged ▪ Distribute policy targeting deployment of M&A strategy capital growth in line seed capital to with clear focus surplus to our with earnings
Slide 17: Business and strategy update
Business and strategy update Robyn Grew Chief Executive Officer 16
Slide 18: Continuously evolving to perform for our clients
Continuously evolving to perform for our clients The challenges investors face… How Man Group addresses these challenges… Meeting risk and return targets with access Providing diversifying investment strategies to liquidity and uncorrelated returns Finding trusted partners who they can work Adapting
Slide 19: We are a global leader in alternatives
We are a global leader in alternatives Providing diversifying investment strategies and uncorrelated returns AUM in alternative strategies AUM in quantitative strategies Selected returns1 $109.6bn Evolution 11.9% $100bn+ GCMS Alpha TargetRisk 10.8% 10.1% 7.6% 2019: $70bn Man 1783 5.0% 2019 2020 2021
Slide 20: We have a proven ability to broaden client relationships
We have a proven ability to broaden client relationships Adapting quickly as requirements evolve while building deep relationships No. of investment strategies Top 25 client statistics1 Relative net flows2 No. of AUM per 9.8% strategies strategy 75+ 85+ Dec-18 4.1 $0.5bn 4.6% 5.3% 4.9% Dec-23 4.5 $0
Slide 21: We bring an allocator's mindset and high-quality institutional resources
We bring an allocator’s mindset and high-quality institutional resources Delivering customised investment solutions at scale, with flexibility and transparency AUM customised for client need No. of institutional solutions Selected key statistics 46 38 825+ markets traded 25 21 $108.8bn $7 trillion n
Slide 22: Our track record of growth highlights the quality of our business
Our track record of growth highlights the quality of our business… 167.5 1,087 18.4 0.9 0.9 751 108.5 11.0 2018 2023 2018 2023 2018 2023 Dividends Repurchases +54% +45% +67% $1.8bn AUM Run rate net mgmt. fees Core management fee EPS Total shareholder returns $bn $m ¢ (5Y, 2019 – 2023) Note: earnings
Slide 23: We continue to innovate and evolve to sustain our growth
… and we continue to innovate and evolve to sustain our growth Our priorities to generate sustained, profitable growth: Diversify our Extend our reach Leverage our investment with clients around strengths in talent capabilities the globe and technology Our aim is to be indispensable to sophisticated
Slide 24: Diversify our investment capabilities
Diversify our investment capabilities Grow existing, or add new capabilities in areas where we have most credibility Our priorities Quant equity Credit Solutions Mid-frequency1 Long-only ~$3bn ~$35bn ~$28bn (+22%) ~$16bn (+30%) Our strengths AUM AUM AUM (3Y CAGR) AUM (3Y CAGR) ~$150bn $500bn+ ~$30tn
Slide 25: Extend our reach with clients around the globe
Extend our reach with clients around the globe Strengthen distribution presence, building on local partnerships and developing tailored product offerings Our priorities North America Wealth Insurance Share of Man Group AUM 35% 22% 9% Share of global AUM1 52% 59% Growing credit capabilities enable ac
Slide 26: Leverage our strengths in talent and technology
Leverage our strengths in talent and technology Continue to invest in the core strengths of our business and deploy resources strategically Our priorities Operating platform Technology Capital Industry-leading operating 35+ years of tech IP infrastructure Strong balance sheet Our strengths ~$600m of
Slide 27: A clear value proposition with significant potential
A clear value proposition with significant potential Talent, technology and collaborative culture reinforcing our competitive edge. ital e Co ap plin ci m dge Di C pe Stable, sustainable growth from investment performance and s E titi long-term client partnerships. ve Sign era Powerful, fully integr
Slide 28: Well-positioned for future growth
Well-positioned for future growth A technology-empowered, solutions-oriented diversified investment firm A competitive edge from combining exceptional talent and cutting-edge technology Track record of delivering strong and consistent returns to clients and shareholders Clear strategy and key priori
Slide 29: Q&A
Q&A A data pack with additional financial information and modelling guidance can be found on our website www.man.com/investor-relations ▪ Karan Shirgaokar (Head of Investor Relations) ▪ +44 (0)20 7144 1000 ▪ investor.relations@man.com 28
Slide 30: Disclosures and other important information
Disclosures and other important information This document is not intended to, and does not constitute, or form part of, an offer to sell or an invitation to purchase or subscribe for any securities, or a solicitation of any vote or approval in any jurisdiction. No representation or warranty, express