Shares in Man Group hedge fund tumble on trading news

Shares in hedge fund Man Group fell more than 20% after it said clients withdrew money over the summer months at the fastest pace since early 2009.

The company said total funds under management fell to $65bn (£41.5bn) at the end of September, 8% lower than three months earlier.

Man said investors withdrew money during a period of "relentless volatility" in world markets.

Half-year profits would now come in at a lower-than-expected $145m, Man said.

Chief executive Peter Clarke said: "As anticipated, investor sentiment continued to weaken across the summer with lower sales in our second quarter and some increase in redemption rates, notably in September."

Global shares, currency and commodity markets swung wildly in August and September as concerns grew over the eurozone crisis and world economic recovery.

Investors withdrew $7.1bn from its funds in the second quarter of its financial year to September.

New sales also halved to $4.5bn, according to the company's trading update.

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