INTERIM MANAGEMENT STATEMENT – THIRD QUARTER ENDED 31 DECEMBER 2010

• Funds under management (FUM) at 31 December 2010 of $68.6 billion (30 September 2010: $40.5 billion with the GLG acquisition adding $25.4 billion)

• Growth in FUM at AHL, GLG and Man Multi-Manager, with positive investment returns generating an additional $2.8 billion for investors

AHL Diversified plc up 14.8% in 2010

Man-IP220 up 22.3% in 2010  

Strong performance across the board at GLG, with double digit returns in GLG Atlas Macro, GLG Emerging Markets, GLG European Distressed, GLG Market Neutral, GLG Global Opportunity, GLG North American Opportunity and the long only GLG Performance Fund

• AHL was 3.7% below peak on a weighted average basis on 31 December 2010, with 75% of FUM at or within 5% of peak

• Positive net flows of $0.1 billion in alternative funds, with demand for GLG and AHL in open-ended formats

• Net outflow of $1.1 billion in long only funds, reflecting a single redemption of over $1.0 billion from a low margin mandate, as the investor switched out of European equities. Inflows in the long only business are at higher margins than outflows.

Peter Clarke, Chief Executive, said:

"Investment performance has been the principal driver of asset growth in the final quarter of the calendar year, delivering impressive returns for 2010 as a whole and a solid backdrop for 2011. The quarter saw positive flows into alternative styles, but a single large redemption resulted in an outflow from lower margin long-only funds. "The sales pipeline is strong across the business. As expected, performance is driving investor demand first in open-ended funds, with our integrated marketing campaigns focusing on emerging markets, global macro and equity long/short funds, as well as managed futures. GLG UK Alpha Select UCITS was re-opened briefly to new investors and raised an additional $240 million. Our most recent guaranteed product, Man Synergy, started trading on 1 January 2011 at $350 million, indicating some pick-up in private investor demand for structured product. The new Man IP220 GLG product, which combines AHL managed futures with the multi-strategy GLG Global Opportunities fund, will start marketing at the end of this month. The institutional sales outlook is positive, with a major European managed account mandate for at least $1.5 billion expected to conclude in February for funding over the year. "The GLG integration process has gone very well, with cost synergies on track and a sales pipeline which provides support for strong revenue synergies to develop. We have also established a new venture, Man Systematic Strategies, to develop quantitatively-based investment ideas using the combined expertise of Man and GLG. Two new products will be launched from this initiative very shortly. "With strong performance and a clear marketing focus for new and existing investment ideas, there is significant momentum for the business in the year ahead."