Pretax profit for the first half of the year will be about $135 million, compared with $302 million last year, according to a company press release.
The profit losses are due to a drop in income from management and performance fees. Performance fees fell to $15.8 million in the first half of the year. Investors also withdrew $600 million from the hedge fund in the second quarter.
The company says its acquisition of GLG Partners will close shortly after the GLG stockholder meeting on October 12, 2010 and that its financial position remains strong, with a regulatory capital surplus of over $1.5 billion and over $2.5 billion in cash. Man Group expects to retain a regulatory capital surplus of around $300 million after closing the GLG acquisition."The strategic rationale for the acquisition of GLG is based on the creation of a performance focused, multi-style investment platform, which is capable of delivering superior, uncorrelated returns from a wide range of investment strategies across market cycles," Man Group CEO Peter Clarke said in the press release. "I am delighted with the progress we have made with integration planning to date, with both firms clearly focused on the powerful investment proposition which will be created by the transaction." --Written by Maria Woehr in New York.
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