• Strategy and objectives
  • Key performance indicators

Key performance indicators

Our KPIs are set in agreement with the Board and used on a regular basis to evaluate progress against our key objectives.

Performance

Fund outperformance vs. benchmark %

20082009 20102011Excess return over last 3 years
Excess return (%) 7.9 2.0 (1.3) 0.5 +0.4%

The weighted average investment performance measures the investment return to investors, net of fees. The outperformance compared to the benchmark gives an indication of the competitiveness of our investment
performance against similar alternative investment styles offered by other investment managers. This measures our ability to deliver superior long term performance to investors.

Growth in net management fee income $m

20082009 20102011CAGR over last 3 years
Excess return (%) 1,143 885 463 430 -28%

While gross revenue is an important measure in aggregate growth, net management fee income is an important driver for the valuation of Man. Net management fees decreased by 7% during the year to $430m due to increased finance expense.

Growth

Growth in funds under management (FUM) $bn

200820092010 2011CAGR over the last 3 years
FUM ($bn) 74.6 46.8 39.4 69.1 -3%

Growth in FUM is an important measure of our ability to retain and attract investor capital. FUM drives our financial performance in terms of management fees and our capacity to earn performance fees. FUM increased by 75% in the year. The principal drivers were the acquisition of GLG and improved investment performance. Excluding the GLG acquisition, FUM relating to the historical Man products increased by 4%.

Growth in gross revenues $m

200820092010 2011CAGR over the last 3 years 
Revenue ($m) 3,222 2,488 1,345 1,655 -20%

Gross revenues include both management fees and performance fees. The growth in gross revenue measures both our ability to grow FUM at stable margins and maintain investment performance for investors on which we earn performance fees. Gross revenue increased by 23% in the year to $1,655m, reflecting a 12% increase in gross management fees and a 290% increase in gross performance fees.

Business sustainability

Growth in adjusted diluted earnings per share – continuing operations ¢

200820092010 2011CAGR over the last 3 years 
Diluted EPS (¢) 90.2 57.0 25.5 27.6  -33%

Growth in adjusted earnings per share measures the overall efficiency and sustainability of our business model, for the benefit of our shareholders. Adjusted diluted earnings per share increased by 8% during the year, the increase in profits and a lower effective tax rate on adjusted earnings being partially offset by the share issue related to the GLG acquisition.

Post tax return on shareholders’ equity (ROE) %

200820092010 2011Average for the last 3 years
ROE (%) 41.6 13.5 10.1 6.5  +10%

Return on Equity measures the efficiency with which we invest or return out capital. ROE is 6.5% for 2011, compared to 10.1% in 2010. The decrease arises due to a $172m decrease in post tax profit while average equity remained constant at $3.8bn.