Man Group PLC plans to incorporate a new group holding company based in Jersey as part of an overhaul of its international governance and corporate structure.
The restructuring comes amid "significant growth" in the company's U.S. operations and in other international markets in the last five years. However, Man Group said it would remain listed in the U.K. and as a tax resident there, with no expected changes to its inclusion in indexes and effective tax rates.
The move would not affect the company's London business and it would not entail any staff moves, except for Chief Administrative Officer Robyn Grew, who will relocate to the U.S. as part of the proposed structure.
Shareholders would trade their existing ordinary shares in Man Group for new shares in the holding company on a 1-for-1 basis. The proposed structure, which remains subject to regulatory and shareholder approvals, would be carried out through a court-approved scheme of arrangement.
As of Sept. 30, Man Group's funds under management amounted to $114.1 billion, up from $103.5 billion a year ago and $113.7 billion at June-end.
Third-quarter net inflows was $400 million, despite a $2.2 billion infrastructure mandate redemption. CEO Luke Ellis said the company had a mixed investment performance in the period, with strong absolute and relative performance from its momentum and discretionary long-only strategies but weaker relative performance in its discretionary alternative and systematic equity strategies.
Funds under management in the AHL business rose to $25.1 billion at September-end, compared to $22.0 billion a year ago. Funds under management at Numeric also rose year over year, to $34.7 billion from $30.9 billion.
The group's GLG unit booked funds under management of $38.0 billion as of Sept. 30, compared to the year-ago $32.9 billion, while funds under management in FRM stood at $14.0 billion at the end of September, compared to $15.5 billion a year ago.
The company also agreed to sell its 18.5% management-fee-only profit interest in Nephila Holdings Ltd. as part of Markel Corp.'s takeover. The sale would result to net proceeds of approximately $130 million. Upon completion of the acquisition, the net proceeds would add an equivalent amount to Man Group's regulatory capital surplus.
Man Group noted that it has already repurchased $96 million of its own shares as part of a $100 million share buyback program announced in April.