LONDON (AP) — Man Group PLC, the world's largest publicly traded hedge fund, said yesterday that funds under management declined in the first half despite a recent growth in private investor sales.

The group said it had $43.3 billion in funds under management on June 30, down from $44 billion at the end of May and $46.8 billion on March 31.

Private investor sales in the three months ending June 30, the company's first quarter, were $3.4 billion, producing a net inflow of $1.9 billion. However, institutional sales amounted to just $300 million, with a net outflow of $3.3 billion. Man Group shares rose 2.6 percent to 245.5 pence on the London Stock Exchange.

In the year ending March 31, Man Group had reported that its net profit fell to $503 million compared to $3.47 billion in the previous year.

The continued fall in funds under management will keep up pressure on annual management fees, which in turn is likely to lead to a cut in dividends, Killik & Co. said in a research note.

"However, the stock still remains attractively valued and we continue to be supportive over the longer-term outlook, with the group benefiting from the failure of rival smaller hedge funds and investors' gradually increasing risk appetite," Killik & Co. said.