Jobs to go as Man funds decline

The hedge fund giant, which employs around 1,500 staff worldwide, said it is planning a further 75 million US dollars (£48.9m) of cost savings in 2012 which will involve an unspecified number of job losses.

The move comes as funds under management fell a further 9 per cent in the three months to December 31 to 58.4 million US dollars (£38.1m) as markets continued to swing wildly in the quarter, with the ongoing eurozone crisis hitting consumer confidence.

However, the results were in line with expectations and the group revealed a final dividend for the latest quarter, giving a total dividend for the first nine months of 16.5 US cents a share.

Man chief executive Peter Clarke said: “Trading conditions have been tough for Man in the second half of 2011. Investment performance varied significantly across styles, with market volatility and reduced market liquidity impacting trading opportunities.”

The group recorded a 190 million US dollar pre-tax profit for the nine-month period but could not give comparable earnings figures for last year, when it reported at the year ending on March 31. It is now moving to a calendar year reporting period in line with industry peers.

Man Group said that its flagship AHL funds, which perform better in low volatility markets, were down 7.7 per cent for the final quarter. But performance in the company’s GLG funds improved in the last quarter.