Man Group (EMG) H2 2024 earnings summary

Executive summary

• Delivered strong 2024 financial results, with $168.6bn in AUM and $10.9bn positive investment performance for clients, reflecting business diversification and outperformance of 1%.

• Navigated a volatile macro environment marked by U.S. exceptionalism, persistent inflation, and geopolitical disruptions, especially in fixed income and commodities.

• Core management fee EPS grew 17% year-over-year, with core net management fee revenue up 14% to $1,097m.

• Net outflows of $3.3bn were primarily due to a single $7.0bn client redemption in Q3, partially offset by strong discretionary long-only inflows.

• Consistent shareholder returns maintained, with a recommended final dividend of 11.6¢ and intention to repurchase up to $100m of shares.

Financial highlights

• Net revenue reached $1.5bn, with net management fees up 14% year-over-year to $1.1bn, driven by higher average AUM and the Varagon acquisition.

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

• Core profit before tax rose 39% to $473m; core management fee profit before tax hit $323m, the highest in over a decade.

• Total AUM at year-end was $168.6bn, broadly flat year-over-year.

• Earnings per share increased 43% to 32.1¢; core management fee EPS up 17% to 21.5¢.

Outlook and guidance

• High conviction in strategies' positioning for 2025, with strong client engagement and robust pipeline, especially in credit and quant equity.

• 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.

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

• Expect continued demand for customized, scalable, and differentiated solutions amid persistent inflation and diverging global trends.