Man Group tops FTSE as Japan fund beats fears quake would curb demand

FTSE:6,082.88 (+12.98) MID-250:12,014.79 (+0.91) Small Cap:3,315.01 (+3.54)

MAN GROUP topped the FTSE 100 yesterday, after it raised $1.5 billion (€1.01 billion) to establish its biggest fund since the height of the financial crisis.

Shares in the world’s largest listed hedge fund rose 3.3 per cent to 258p after it said its computer-driven AHL unit launched the Nomura Global Trend fund, in partnership with the Japanese bank, at the end of April.

News of the open-ended fund’s launch came after Man said in its latest trading update that capital inflows from clients were recovering although losses relating to the tsunami and earthquake in Japan reached $2 billion.

But the stronger-than-expected performance for the new fund was robust enough to help other money managers.

Among them, Schroders rose 0.4 per cent to £19.06 and interdealer broker Icap gained 1.1 per cent to 524p.

London’s benchmark index returned from its second successive four-day weekend with a modest gain of almost 13 points.

There remained a defensive feel to much of the London market’s leaderboard, amid a sense of caution in dealing rooms.

Imperial Tobacco was 2 per cent stronger at £21.49 and consumer products maker Reckitt Benckiser was 2.9 per cent higher at £34.17.

With risk appetite dulled, resource companies took a toll. Kazakhmys slipped 3.4 per cent, while Vedanta Resources was 1 per cent softer.

Financial stocks were also in focus on the FTSE 250 after Aberdeen Asset Management beat forecasts with a 54 per cent rise to £142.8 million in interim pretax profit. Although net capital outflows continued to rise, strong levels of new business from high-fee products underpinned earnings. Shares in the company added 0.4 per cent to 230p.

Miners hampered the FTSE progress though, hurt by easing metals prices on renewed fears about demand, with Rio Tinto off 1.6 per cent on talk that the miner was lining up a bid to buy US aluminium producer Alcoa. Neither Rio Tinto nor Alcoa would comment on the rumours.

Data from the Confederation of British Industry highlighted the grim outlook facing retailers. Next fell 0.7 per cent, while Marks & Spencer dipped 0.9 per cent. ITV, which relies on advertising from the retailers, fell 2.2 per cent. – (Copyright The Financial Times Limited 2011/Reuters)