ii view: why Man Group shares just extended 10-month rally
A differentiated investment offering and with the shares boasting an attractive dividend yield. Buy, sell, or hold?
28th July 2026 12:01
by Keith Bowman from interactive investor
First-half results to 30 June
- Asset under management of $253.6 billion (£190 billion), up from $228.7 billion on 31 March
- Adjusted or core pre-tax profit up 103% to $297 million
- Interim dividend unchanged at 5.7 US cents per share
- Net tangible assets of $758 million, up from $723 million in late December
Chief executive Robyn Grew said:
"In today's markets, clients are consolidating their relationships with a smaller number of highly capable, strategic partners who can help them manage complex risk and growing macroeconomic uncertainty.
“The quality of our people and our technology means we are well placed to capture that shift. As our clients' needs evolve, so will we, creating an even stronger business that is positioned for long-term success."
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ii round-up:
Fund manager Man Group (LSE:EMG) today detailed profit that beat City forecasts, aided by an all-time high for assets under management (AUM).
Second-quarter net fund inflows of $8.7 billion (£6.6 billion) helped deliver AUM of $253.6 billion, up from $228.7 billion three months earlier. First-half performance fees of $207 million, up from $67 million a year ago, helped adjusted group-wide interim profit double to $297 million. Analysts had expected $270 million.
Shares in the FTSE 250 company rose 5% in UK trading having come into these latest results up by close to a third so far in 2026 and up 111% since mid-September. That compares with a near one-quarter rise in 2026 at rival and big dividend payer M&G Ordinary Shares (LSE:MNG). The FTSE 250 index is up almost 7% year-to-date.
Man Group’s managed funds are split relatively evenly between alternative investment strategies, some with the ability to go short, plus more traditional long-only or buy-and-hold funds.
Fund inflows of $6.9 billion into long-only funds during the quarter significantly outweighed flows of $1.8 billion into alternative funds able to take short positions. All three major US indices hit record highs during the quarter.
An investment gain of $14.9 billion for the long-only funds helped drive overall investment gains of $16.7 billion, aiding the record AUM outcome of $253.6 billion.
An interim dividend of 5.7 US cents per share is unchanged from a year ago and payable to eligible shareholders on 18 September.
Just over half of a $50 million share buyback programme announced in May had been completed as at 24 July. Group net tangible assets of $758 million as of late June is up from $723 million in late December.
A third-quarter trading update is likely mid-October.
ii view:
With a history dating back to 1783, Man Group today employs around 1,700 people across more than 20 offices globally. Employing around 600 technologists to drive proprietary systems in supporting research, Man Group continues to believe that technology will play a key role in the future of active management.
For investors, the rise of AI is likely to see more rivals adopting computers to help manage money. Competition across the asset management industry remains intense. A $6.1 billion withdrawal by a single institutional client from Man's long-only strategy hindered performance in Q1 and underlined the importance of a single client, while costs for businesses, and particularly wages, remain elevated.
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On the upside, product variation and the use of computers to help manage active funds help set Man Group apart from rivals. Performance fees sit alongside more standard management fees, potentially boosting profits. A robust balance sheet includes net tangible assets of $758 million as of late June, while shareholder returns have included periodic share buybacks.
On balance, and while risks remain, positive momentum, strong results and a forecast dividend yield of close to 5% will likely keep fans of this differentiated fund manager interested.
Positives:
- Diversity of investment strategies
- Attractive dividend yield (not guaranteed)
Negatives:
- Intense industry competition
- Foreign exchange movements can hinder
The average rating of stock market analysts:
Buy
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