Man Group ready to take £64m out of costs

Hedge fund manager Man Group plans to cut costs by a further £64m a year, its first move under finance director Jonathan Sorrell to shore up profits in the face of dwindling sales.
By The Newsroom
Published 25th Jul 2012, 07:00 BST

The fund firm, whose shares have lost about three quarters of their value since the start of 2011 on the back of client outflows, has faced pressure to cut deeper or faster, and this is its third wave of savings since Man bought rival GLG in 2010.

The move could see hundreds more jobs among Man’s roughly 1,500 workforce lost, following 400 job cuts already made.

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Man also said yesterday that it had written down the value of fund manager GLG, a controversial acquisition intended to reduce reliance on its flagship computer-driven fund AHL, by £60m.

Sales of high-margin guaranteed products have suffered from poor performance by AHL.