Persistent withdrawals brought Man Group’s revenues for fiscal year ended March 31 down by 22.8% to $2.49 billion and net profits down 85% to $503 million from $3.47 billion a year earlier.

Man Group’s assets under management stood at $44 billion at the end of May, down 41% from $74.6 billion in March 2008. The hedge fund said it is bracing for an additional $2 billion in redemptions by July but inflows to return in the second half of the year.

While hedge fund performance has improved recently, industry experts say it could take several quarters for hedge fund assets to rise again. That will continue to put pressure on revenues.

As Man Group CEO Peter Clarke said, “With lower levels of assets, we’re going to see lower levels of management-fee income.”


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