UPDATE: Man Group Funds Under Management At Oct Unchanged From Sep

The September figure represented a rise in funds under management from $43.3 billion at June 30. The increase, although modest, has encouraged analysts and investors that the company had turned a corner from the heavy investor redemptions and poor fund performance that had slashed assets from their peak of $79.5 billion in June 2008.

Like other hedge-fund firms, Man Group's prospects have improved as the financial crisis has receded, with both sales of its funds and the funds' performance improving. Its share price has also bounced back from a 150-pence low in March. At 0901 GMT, shares were down 4 pence, or 1.3%, at 321 pence.

"We are very encouraged by the outlook," Chief Executive Peter Clarke told Dow Jones Newswires. "I can't predict quarter-on-quarter growth [in assets under management], but I would say we are very strongly positioned for significant asset growth over the coming periods."

The company reported $302 million in pretax profit for the six months ended Sept. 30, down 51% from $622 million in the same fiscal 2009 period. It said net profit was $248 million for the first half, down 51% from $507 million a year earlier.

Its fiscal 2010 year ends March 31.

Man Group said that while private investor sales for the half-year were robust, institutional sales remained muted.

Comparing the second quarter with the first, sales fell to $2 billion for the period ended Sept. 30, from $3.7 billion in the three months ended June 30.

Meanwhile, total redemptions slowed to $2.5 billion in the second quarter from $5.1 billion in the first.

"The second quarter saw a significantly reduced level of redemptions, back to the sort of level we have historically seen before the financial turmoil. I would expect those historical levels to remain in place," Clarke said.

Credit Suisse said although first-half results were in line with expectations, it is "increasingly concerned" about Man's managed-futures trading program, called AHL.

AHL, a big earnings driver, has had its performance hit by market volatility.

"AHL is going through a period of negative performance, but it also tends to recover quite quickly once trends are established," Clarke said.

Man Group maintained its interim dividend at 19.2 cents a share for the period.

-By Patricia Kowsmann and Margot Patrick, Dow Jones Newswires. Tel +44(0)207- 842-9295, patricia.kowsmann@dowjones.com

  (END) Dow Jones Newswires
  11-05-090434ET
  Copyright (c) 2009 Dow Jones & Company, Inc.