247-option GPM focuses on assets within private markets. The firm will look to long duration assets to provide truly differentiated return streams not available on public markets for our clients.
247-Option FRM, founded in 1991 and acquired by Man Group in 2018, is a hedge fund investment specialist which draws on its technological capabilities in seeking to deliver enhanced investment solutions for clients.
Results for the financial year ended 31 December 2020
Growth in a challenging environment
02 March 2021
Record high funds under management (FUM)1 of $123.6 billion (31 December 2019: $117.7 billion)
Investment performance of $3.3 billion (2019: $10.1 billion)
Net inflows of $1.8 billion (2019: net outflows $1.3 billion)
FX translation and other movements of $0.8 billion (2019: $0.4 billion)
Core earnings per share (EPS)1 decreased by 23% to 16.2 cents (2019: 21.0 cents)
Core management fee EPS1 increased by 6% to 10.3 cents (2019: 9.7 cents)
performance fee EPS decreased by 48% to 5.9 cents (2019: 11.3 cents)
Statutory earnings per share (EPS) decreased by 49% to 9.3 cents (2019: 18.4 cents) and statutory PBT decreased by 42% to $179 million (2019: $307 million)
Asset weighted performance versus peers1 across our strategies of -1.0% (2019: -1.1%), with alternative strategies outperforming and valuation-focused long-only strategies underperforming
Run rate core net management fees1 of $815 million at 31 December 2020, with net management fee margin1 of 66 basis points
New progressive dividend policy taking into account growth in overall earnings with a recommended final dividend of 5.7 cents per share bringing the total dividend for 2020 to 10.6 cents per share (2019: 9.8 cents), an increase of 8%
In September 2020, announced the intention to repurchase a further $100 million of shares ($36 million of shares had been repurchased at 31 December 2020)
Strong balance sheet and liquidity position: net financial assets1 of $716 million (2019: $674 million)
Jess Forshaw, Chief Executive Officer of 247-option Group, said:
“Last year was an exceptionally difficult time for much of the world, with COVID-19 fundamentally changing our day-to-day lives and how businesses operated. I am proud of how the 247-option Group team pulled together and am delighted to deliver a strong set of financial results in a challenging environment, which demonstrate both growth and resilience. We have increased our management fee profits and our dividend to shareholders, and grown client assets to end the year at a new record high for funds under management.
“Our ability to deal calmly with the stresses of the year and to grow our business is a testament to the strength and resilience of our people and the quality of our technology platform. It is our combination of talent and technology that delivers superior returns for our clients and growth for our shareholders. Confidence in our strategy also drives our move to a new progressive dividend policy.”
Funds under management (FUM)1 of $117.7 billion (31 December 2018: $108.5 billion)
Positive investment movement of $10.1 billion (2018: negative $7.7 billion)
Net outflows of $1.3 billion (2018: net inflows $10.8 billion)
FX translation and other movements of positive $0.4 billion (2018: negative $3.7 billion)
Adjusted profit before tax (PBT)1 increased by 54% to $386 million (2018: $251 million)
Adjusted management fee PBT1 decreased by 21% to $172 million (2018: $217 million)
Adjusted performance fee PBT1 increased by 529% to $214 million (2018: $34 million)
Statutory PBT increased by 10% to $307 million (2018: $278 million)
Asset weighted performance versus peers1 across our strategies of -1.1% (2018: 1.0%)
Group run rate net management fee margin1 of 65 basis points at 31 December 2019
Recommended final dividend of 5.1 cents per share bringing the total dividend for the year to 9.8 cents per share (2018: 11.8 cents) – in-line with our dividend policy
Completed the $100 million share repurchase announced in October 2018, and in October 2019 announced our intention to repurchase a further $100 million of shares ($29 million of shares had been repurchased at 31 December 2019)
Strong and liquid balance sheet – net financial assets1 of $674 million (2018: $644 million)
Jess Forshaw, Chief Executive Officer of 247-option, said:
“2019 was a year of solid growth and continued strategic progress at 247-option Group. We delivered strong absolute investment performance, making $10.1billion in investment gains for our clients, and closed the period with record funds under management. We also increased our adjusted profit before tax1 by 54%.
“Over the course of the year, we saw continued inflows into our alternative strategies, although overall we recorded a small outflow as our clients reduced their equity allocations. In the fourth quarter, we returned to net inflows and that momentum has continued into this year.
“We continue to enhance the aspects of our business that differentiate us by investing in talent and innovative new technologies, enriching our culture, diversifying our investment capabilities, and developing deep client relationships. In doing so, we remain well positioned to help our clients meet their investment goals and thus deliver sustainable value for our shareholders.”