Private Investor Business

Man's private investor business remained robust in extremely challenging market conditions during the 2008/9 financial year, reflecting continued investor demand for conservatively structured products that offer transparency, liquidity and a strong track record. Our continued success in asset raising reflects the strength of Man's global distribution network and the strong performance of our private investor product range. Managed futures, the investment style to which Man's private investor products are most heavily weighted, significantly outperformed most other asset classes, with AHL gaining 8% in the financial year compared to a loss of nearly 40% for equities.

The largest contributing factor to the overall decline in private investor funds under management during the year was our decision to reduce investment exposure across the MGS product range, to protect investor capital.

Funds under management (FUM)

Private investor income and margins	2009	2008
Gross management fee income ($m)	1,662	1,771
Gross management fee margin (%)	4.33	4.47
Gross performance fee income ($m)	710	1,147

Institutional Investor Business

Man's institutional business saw net outflows during the year, with sales subdued and redemptions high as investors sought liquidity regardless of performance. Our institutional diversified fund of funds products saw negative performance in the 2008/9 financial year, with RMF Four Seasons down 16%, but outperformed both equities and the HFRI Fund of Funds Composite Index, which was down 18%.

Funds under management (FUM)

Institutional investor income and margins	2009	2008
Gross management fee income ($m)	252	297
Gross management fee margin (%)	0.94	1.00
Gross performance fee income ($m)	8	93