Man Group (EMG) H2 2024 earnings summary

Executive summary

• Delivered strong 2024 financial results, with $168.6bn in AUM, $10.9bn positive investment performance, and business diversification.

• Navigated a challenging market with U.S. exceptionalism, volatile fixed income and currency markets, and geopolitical disruptions.

• Net outflows of $3.3bn were mainly due to a single $7.0bn client redemption, partially offset by strong discretionary long-only inflows.

• Core management fee EPS grew 17% year-over-year, with net management fees up 14% to $1.1bn.

• Consistent shareholder returns maintained, with a final dividend of $0.116 per share and a $100m share buyback announced.

Financial highlights

• Net revenue reached $1.5bn, with core profit before tax up 39% to $473m.

• Performance fees totaled $310m, up from $180m in 2023.

• Core EPS rose 43% to $0.321; core management fee EPS up 17% to $0.215.

• Compensation ratio at 47%, within guidance and 3% lower than 2023.

• Fixed cash costs increased to $412m, mainly due to the Varagon acquisition and growth investments.

Outlook and guidance

• High conviction in strategies' positioning for 2025 amid diverging economic trends and complex market conditions.

• Fixed cash cost guidance for 2025 set at $425m, about 5% below consensus.

• Multi-year strategic priorities focus on diversifying investment capabilities, expanding global reach, and leveraging talent and technology.

• Entering 2025 with strong momentum in credit, quant equity, and new product launches.

• Good early progress in 2024, with impact expected to be gradually realized over 2025.