M&G profits jump by 30% despite assets falling as institutional outflows grow
Andrea Rossi (pictured) is the group CEO of M&G
The firm's adjusted profits before tax jumped to 31% to £390m, according to its half-year results to June 2023, beating analyst expectations of £284m.
Assets under management and administration dropped by 4.7% to £332.8m during the period, missing analyst forecasts of £339m.
Net client inflows, excluding heritage, fell to £700m from £1.2bn in the first half of 2022, but rose from the £300m collected at the end of last year. Analysts had predicted £2.2bn in outflows for the period.
M&G launches full PruFund range on Wealth platform
M&G's wholesale asset management business attracted £1.3bn in net client inflows, an increase from the £800m gathered in the first half of 2022, with net inflows to its PruFund UK growing to £3.3bn.
The firm's private markets sub-division saw net inflows of £700m, while its institutional asset management business suffered £1.4bn in outflows, mainly due to UK client redemptions following the Mini Budget.
However, the asset manager reported «encouraging» progress with positive net flows in Europe and the in-housing of a £5.5bn Asian mandate from an internal client.
«Against the backdrop of ongoing market volatility and uncertainty we have made progress against all three pillars of the strategy that we launched in March,» said Andrea Rossi, group chief executive officer.
These pillars include maintaining the firm's financial strength through capital discipline, mobilising the transformation programme to simplify the business and improve client outcomes, as well as delivering growth with positive net client inflows.
Jefferies reiterates 'Buy' rating on M&G amid £1bn wholesale inflows
«As we look ahead, I remain confident we have the right
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