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Man Group May Yield 6.5%

LONDON -- The shares of Man Group  (LSE: EMG  )  climbed 3 pence to 106 pence during early London trade this morning after investors calculated the hedge-fund specialist may offer a 6.5% income.

Man today reconfirmed that, from 2013, it would pay at least 100% of its adjusted management fee income as an ordinary dividend.

Results for 2012 issued this morning indicated pre-tax management fee income of $223m, which if sustained this year might translate into a dividend of about 6.8 pence per share and support a yield in excess of 6%.

Man's statement also revealed current shareholders are in line to receive an 8.3 pence per share payout during May. However, the results showed this payment to be 6% greater than the group's underlying profits for the entire year.

Man's figures also disclosed funds under management falling by $1bn to $57bn during 2012, with client redemptions of $20bn outweighing incoming money of $13bn.

The company admitted funds under management have declined by a further $2bn so far during 2013.

Manny Roman, Man's chief executive, said:

2012 was another tough year for Man. Trading conditions were highly challenging as markets continued to be dominated by political uncertainties in Europe and the US and macroeconomic risks. Investor appetite remained muted and as expected there was a further decline in Man's product margin mix and revenues.

Roman also said most of the group's investment strategies had enjoyed a good start to 2013 and that investor sentiment had "improved somewhat." However, he cautioned that Man had yet to see a slowdown to the rate of redemptions.

Of course, whether Mr Roman's comments, the company's potential dividend and the general outlook for the hedge-fund sector all combine to make Man a buy remains your decision.

However, if you already own Man shares and are looking for another dividend opportunity, this exclusive in-depth report reviews a solid income possibility within the FTSE 100.

Indeed, the blue chip in question offers a 5.7% income, might be worth 850 pence versus around 700 pence now -- and has just been declared the "Motley Fool's Top Income Stock For 2013"!

Just click here to download the report -- it's free.

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9/30/2016 12:10 PM
EMG $112.60 Down -0.10 -0.09%
Man Group CAPS Rating: No stars