“As we look ahead, the strong foundations we have built give me confidence in the long-term outlook for M&G.”
Asset Management
The wholesale asset management business, the unit which markets products to financial advisers and wealth managers had what the company calls “neutral” net flows, with the amount clients withdrew equalling the amount of new money clients placed with the company.
That compares with net inflows of £1.3bn in the same area in the same six month period of 2023.
In the results, the company said: “[This is] a good result in a challenging market for active investment solutions, where there have been £15bn of net outflows in the UK and €18bn net outflows in Europe.”
Total assets under management for the wholesale asset management unit was £56bn at the end of June 2024, compared with £54bn at the end of 2023.
The wholesale asset management unit generated revenue of £153mn, and a margin of 55 basis points.
The contribution to net profits from the asset management division rose by 9 per cent, while the contribution from the wealth and life units shrank by 7 per cent.
More than half of the £313bn of assets under management, £160bn, is described as being managed for internal clients, which relates to assets managed for its own advisers and the Prudential insurance company of which it was once part, before being split out into a separate business.
Across the entire asset management business, costs were cut by 2 per cent, and across all parts of the business by 4 per cent.
Since it began its current cost cutting programme, around £120mn has been cut, the initial target was £200mn, this has now been extended to £220mn.
M&G’s share price is down around 6 per cent since the start of 2024.
Rossi, added: "Our Simplification agenda continues at pace, delivering £121 million in cost savings so far."
David.Thorpe@ft.com
