Man Group hoists its forecast

MAN Group shares soared today as the hedge fund manager told analysts it had seriously underestimated its profits this year.

Man, which has mushroomed from a tiny sugar trader into a £5bn giant, said profits for the year to March would be 'materially in excess of current market expectations' due to stronger sales and fees than expected.

Analysts were expected to lift forecasts from about £425m to up to £500m. Sales had been strong throughout the year and would be about $10.5bn (£5.7bn), boosting funds under management to about $38bn.

Net management fee income would be at the top of forecasts and performance-related fees would be 'materially' ahead of last year. The shares rose 61p to 1716p.

Its clients are mostly wealthy individuals in Europe, the Middle East and Far East. Full figures are due on 20 May.