Man Group (EMG) H1 2024 earnings summary

Executive summary

• Assets under management (AUM) reached $178.2bn as of 30 June 2024, up 6% since December 2023, driven by $11.1bn in investment gains and net inflows despite industry headwinds and market volatility.

• Core management fee earnings per share increased 26% year-over-year to 11.0¢, and core profit before tax rose to $257m, up 88% from H1 2023.

• The firm advanced strategic priorities, expanding in alternatives, credit, and wealth channels, and leveraging technology and talent for future growth.

Financial highlights

• Net management fees increased 20% year-over-year to $551m, and performance fees rose to $170m in H1 2024.

• Core net revenue reached $761m, and core profit before tax was $257m, up 88% year-over-year.

• Interim dividend declared at 5.6¢ per share, with $115m returned to shareholders through buybacks and dividends.

• Compensation ratio decreased to 47%, within guidance, with total compensation costs at $358m.

• Net tangible assets stood at $779m, and net financial assets at $411m as of 30 June 2024.

Outlook and guidance

• Run-rate net management fees at $1,128m with a 63bps margin as of June 2024, supporting future earnings potential.

• Anticipated $6.7bn redemption in Q3 from a single client, with minimal profit impact due to low fee margin.

• Fixed cash cost guidance for 2024 remains at $425m, adjusted for FX rates.

• Management remains confident in long-term success, supported by a robust balance sheet and disciplined capital policy.