Stock Markets February 26, 2026

Man Group Posts Record Organic Growth as AUM Climbs 35%

Asset growth driven by large inflows into systematic long-only strategies, while core margins and statutory profits contract amid restructuring and legal costs

By Derek Hwang
Man Group Posts Record Organic Growth as AUM Climbs 35%

Man Group reported record organic expansion in assets under management (AUM), which rose to $227.6 billion at 31 December 2025, a 35% increase from $168.6 billion a year earlier. The firm attributed the rise to $28.7 billion of net inflows and $21.4 billion of positive investment performance. While inflows and market-share gains strengthened the company’s scale, fee margins and statutory earnings declined due to product mix shifts, restructuring costs and legal provisions.

Key Points

  • AUM increased to $227.6 billion at 31 December 2025, a 35% rise from $168.6 billion a year earlier, driven by $28.7 billion of net inflows and $21.4 billion of positive investment performance.
  • Systematic long-only strategies captured $22.5 billion of net inflows, including a single client subscription of $13.2 billion; discretionary long-only strategies attracted $12.0 billion.
  • Core net management fee revenue fell 2% to $1,077 million and net management fee margin compressed to 56 basis points from 63 basis points due to product mix shifts.

Overview

Man Group recorded a substantial increase in assets under management, finishing the year at $227.6 billion as of 31 December 2025, up 35% from $168.6 billion a year earlier. Management attributed the rise to $28.7 billion of net inflows complemented by $21.4 billion of positive investment performance during the period.

Flows and client activity

The London-based alternative manager said its net inflows were 19.3% ahead of the industry on an asset-weighted basis, marking the sixth consecutive year of market share gains. Systematic long-only strategies were the primary recipient of fresh capital, attracting $22.5 billion in net inflows, which included a single client subscription of $13.2 billion. Discretionary long-only strategies also drew material interest, securing $12.0 billion in net inflows.

Revenue and margins

Despite the expansion in assets, core net management fee revenue edged down 2% to $1,077 million from $1,097 million in 2024. The company said this decline reflected a shift in product mix toward lower-margin strategies, with the net management fee margin compressing to 56 basis points from 63 basis points, driven by the large inflows into systematic long-only products.

Core performance fees amounted to $281 million, below the $310 million recorded in 2024. Management noted that performance fee contributions came from both alternative and long-only strategies, and that trend-following strategies faced a challenging first half before recovering strongly in the second half.

Profitability and earnings

Core profit before tax fell 14% to $407 million from $473 million a year earlier. On a statutory basis, profit decreased by 41% to $175 million from $298 million. Core diluted earnings per share declined to 27.6 cents from 32.1 cents, while statutory diluted earnings per share moved down to 15.0 cents from 25.1 cents.

Strategic M&A and costs

The company completed the acquisition of Bardin Hill Investment Partners on 1 October 2025 for consideration of $81 million, adding opportunistic and performing credit capabilities to its platform. Bardin Hill contributed $2.7 billion to assets under management.

Man Group incurred $30 million of restructuring costs during the year as part of a reorganisation intended to reduce fixed costs and better align resources with strategic priorities. It also recognised $32 million of costs associated with legal claims, which include ongoing proceedings with the Public Institution for Social Security in Kuwait.

Capital returns and balance sheet

The board recommended a final dividend of 11.5 cents per share, producing a total dividend for 2025 of 17.2 cents, unchanged from 2024. The company completed a $100 million share repurchase programme announced in February.

Net tangible assets were $723 million at 31 December 2025, down from $867 million a year earlier, and included $173 million of available cash and cash equivalents. The company reported it maintained an undrawn $800 million revolving credit facility.

Run rate net management fee revenue rose to $1,182 million at year-end from $1,058 million at 31 December 2024, reflecting the significant growth in assets under management.

Management commentary and tax

Chief Executive Officer Robyn Grew said the company executed with discipline against its strategic priorities, consolidating systematic teams, strengthening credit capabilities through the Bardin Hill acquisition, and launching an active ETF platform.

The effective tax rate increased to 32% from 25%, a change the company attributed in part to the derecognition of $11 million of available US deferred tax assets following a change in the allocation of income between states.

Workforce

Man Group employed an average of 1,770 people during 2025, down from 1,802 in 2024. Headcount at year-end stood at 1,719 compared with 1,777 a year earlier.


Key points

  • Assets under management rose to $227.6 billion at 31 December 2025, up 35% year-on-year, driven by $28.7 billion of net inflows and $21.4 billion of positive investment performance.
  • Systematic long-only strategies drew $22.5 billion of net inflows, including a single client subscription of $13.2 billion, while discretionary long-only strategies attracted $12.0 billion.
  • Core net management fee revenue fell 2% to $1,077 million and net management fee margin fell to 56 basis points from 63 basis points due to a shift toward lower-margin products.

Risks and uncertainties

  • Margin pressure from a shift in product mix toward lower-margin systematic long-only strategies could impact fee income - relevant to asset management and financial services sectors.
  • Legal claims, including ongoing proceedings with the Public Institution for Social Security in Kuwait, resulted in $32 million of costs and present ongoing legal and reputational uncertainty - relevant to corporate governance and legal risk within financial services.
  • Restructuring costs of $30 million and the potential for further reorganisation to reduce fixed costs could affect near-term profitability - relevant to company operations and employment levels in the financial sector.

Risks

  • Fee-margin compression from large inflows into lower-margin systematic long-only products may weigh on management fee income, affecting asset management revenue streams.
  • Legal proceedings, including the ongoing case with the Public Institution for Social Security in Kuwait, generated $32 million of costs and introduce legal and financial uncertainty.
  • Restructuring actions that cost $30 million to implement could suppress near-term profitability and have implications for employment and operating capacity.

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