Heavy impairment charges and lower fee income have plunged hedge fund Man Group PLC (LON:EMG) into the red.
Performance fees slumped by third thirds to US$112mln in 2016, while there was a 9% drop in management fees to US$691mln.
The decline was in spite of a sharp spike in new business while funds under management also rose but operating profits slumped to US$205mln (US$400mln) while write-downs of US$379mln for its GLG and FRM divisions meant a loss of US$272mln.
2016 was a disappointing year for GLG, said Luke Ellis chief executive, and this was reflected in the impairment charge but the actions taken should lead to improvements in 2017, he added.
Fund of funds group FRM also turned in a weak performance last year, Ellis said.
Shares fell 4.5% to 139.8p.