UBS has downgraded FTSE 250-listed Man Group PLC (LSE:EMG) from ‘buy’ to ‘neutral’, citing concerns over the investment-management firm's weaker performance fee potential and increasing volatility in fund flows
According to UBS, Man's performance free-generating AHL quant division has seen a notable decline, with the net asset values (NAVs) falling 10-20% in recent months.
Additionally, UBS noted the business has experienced volatility in its fund flows, driven by the loss of several large institutional mandates.
As a result, it has reduced its earnings estimates for the company by 10-15% for 2025-26.
The bank expects Man shares to remain range-bound over the next six to twelve months.
It has therefore lowered its 12-month price target for Man Group from 290p to 225p, a 22% reduction.
Shares are down 11% year to date.