Maitland/AMO Morning Monitor – Friday 11 October 2019
What really matters... COVID-19
The FTSE, CAC and DAX are all expected to open down this morning.
Asian markets are higher today with shares in Hong Kong leading the region.
Stock market moves
In other news
- Irish prime minister Leo Varadkar claims a withdrawal treaty could be agreed by the end of the month following talks with prime minister Boris Johnson
- Turkish troops have stepped up their offensive against Kurdish forces in north-eastern Syria
- WeWork attempt to complete a new debt financing package by next week to aid in a restructure of the company
- Brexit Secretary Stephen Barclay and the EU's negotiator are to meet in Brussels this morning following yesterday's talks between the British and Irish Prime Ministers
Corporate announcements* Maitland Client
Man Group PLC Trading Statement for the quarter ended 30 September 2019
- Funds under management of $112.7bn at 30 September 2019 (30 June 2019: $114.4bn).
- Positive investment movement of $0.7bn in the quarter.
- Net outflows of $1.1bn in the quarter.
- Completion of the $100m share repurchase announced in 2018 earlier this month, bringing the total amount repurchased since 2014 to $0.7bn.
- Intention to repurchase up to $100m of shares; we will continue to review further potential acquisition opportunities.
- Luke Ellis, CEO, said: “In the third quarter, we saw a continuation of the trends experienced in the first half of the year with strong absolute performance and inflows into our quant alternative strategies, and outflows from our long only equity strategies. FX moves were negative in the quarter, which led to an overall dip in FUM to $112.7 billion, but year to date assets are up 4%. As we look ahead, we are encouraged by our good performance fee earning potential, although uncertain economic conditions mean the outlook for flows remains mixed. The diversified nature of the business means that we remain well positioned and, given our continued strong cash generation, we are pleased to announce a further return of capital.”
- Net outflows in the quarter of £1.3bn.
- AUM at 30 September 2019 of £45.1bn, a decrease of £0.8bn in the quarter.
- Net mutual fund outflows were £1.0bn during the quarter, of which £1.1bn outflows were from our European Growth strategy, principally within the UK and Continental Europe.
- Segregated mandates saw £0.3bn net outflows during the quarter. Within this, two clients withdrew assets totalling £0.7bn and two new mandates were opened in the period totalling £0.4bn.
- Group reported revenue was 7% lower than the prior period at £173.1m (2018: £185.7m).
- Group underlying EBITDA was £13.4m (2018: £17.3m).
- Net cash used in operating activities amounted to £18.6m in comparison to £13.3m in the prior period.
- At 30 June 2019, overall net debt of £510.0m was £168.5m higher than the prior.
- At 30 June 2019, overall production financing of £77.8m was £62.3m lower than the prior year.
- TP ICAP plc today announces that its subsidiary, Tullett Prebon (Europe) Limited has entered into a settlement with the Financial Conduct Authority with respect to an investigation in relation to certain trades undertaken between 2008 and 2011.
- The investigation also related to the circumstances surrounding a failure in 2011 by TPEL to discover certain audio files and produce them to the FCA in a timely manner, together with the account given by TPEL to the FCA as to how those files were discovered.
- The FCA recognised that TPEL fully cooperated with the investigation into the relevant trades and conducted its own review of certain trades which it disclosed to the FCA.
- Nicolas Breteau, CEO, said: “We are pleased to put this historical matter behind us. None of the individuals involved in the relevant broking activities remain with our firm, which has long since taken the opportunity to significantly enhance its systems and controls to comply with regulatory expectations.”