Shares in Man Group were down on the FTSE 100 after the investment company said it expected profits to decline in the six months to 30 September 2010.

In the same period last year the group reported profits before taxes and adjusting items of £292 million. This year however half year profits are predicted to drop to £215 million, Man Group said.

Excluding adjusting items pre-tax profit is expected to drop from £302 million to just £135 million.

Peter Clarke, Chief Executive of Man, said, "The last six months have seen further mixed macro signals across global economies and continued uncertainty in markets. The industry has experienced significant variations in performance between investment styles and between managers within each style. It has therefore been pleasing to see Man's investment strategies performing well in these difficult conditions, with AHL up 7.6% in the calendar year to 31 August and our flagship principal protected product, IP220, up 17.5% over the same period. Whilst many investors remain reluctant to commit capital amid current market uncertainty, solid performance is the focus for our investors and the mainstay of the medium term sales outlook.

"The hedge fund landscape will be shaped by investor demand for liquid, transparent portfolios, regulated solutions and risk-controlled returns. Man's strong local relationships, global scale and flexible product range enable us to meet these requirements across markets. Our franchise in onshore regulated products continues to grow, with over $450 million now invested in our UCITS formats, originated in 27 countries within and outside the EU. The addition of GLG's products, on completion of the transaction, will be a valuable expansion in both the scale and scope of our onshore offering. On the institutional side, we continue to see high levels of interest for managed account based solutions, which provide controlled, flexible and transparent access to diversifying return streams. Mandates already secured are now funding progressively.

"The strategic rationale for the acquisition of GLG is based on the creation of a performance focussed, multi-style investment platform, which is capable of delivering superior, uncorrelated returns from a wide range of investment strategies across market cycles. Since the announcement of the transaction, GLG has reported continued asset raising and strong recent performance across a variety of styles including emerging markets, global macro, equity long/short, market neutral and credit. I am delighted with the progress we have made with integration planning to date, with both firms clearly focussed on the powerful investment proposition which will be created by the transaction."

By 10:40 shares in Man Group were down 2.74 per cent on the FTSE 100 to 213.30 pence per share.