M&G posts net asset management inflows, surprise Solvency II boost
Adds detail on Solvency II ratio, redundancies and fund performance from paragraph 5
By Kirstin Ridley and Sinead Cruise
LONDON, June 8 (Reuters) -Britain's M&G MNG.L recorded 1 billion pounds ($1.25 billion) of net inflows to its wholesale asset management business in the first quarter, offsetting expected redemptions from institutional clients.
The insurer and asset manager said net client inflows, excluding its Heritage business, stood at 0.4 billion pounds, despite redemptions triggered by a 'mini-budget crisis' in September 2022, ending a period of subdued performance in its British market.
The figure was up from 0.3 billion in the comparative 2022 period and helped to boost the firm's assets under management and administration by 2 billion pounds to 344 billion pounds.
"Notwithstanding an uncertain external environment, we are building on the inherent strengths of our differentiated business model, delivering profitable growth alongside attractive shareholders returns," Chief Executive Andrea Rossi said.
Despite continued volatility in financial markets, M&G's Solvency II coverage ratio edged up to 200% from 199%. As of March, 68% of mutual funds ranked in the upper two performance quartiles over one year and 75% over three years.
"M&G has improved its capital strength in 1Q 2023, more than compensating for the 310 million pound dividend paid in the quarter," analysts at Jefferies said, echoing comments by peers at RBC who described the Solvency II uplift as a "positive surprise".
"We would have expected falling UK rates and CRE (commercial real estate) valuations to have more of a negative impact over the quarter," RBC said in a note.
Shares were trading 0.6% lower at 8:49 a.m. (0749 GMT), compared with a flat FTSE 100 index.
Rossi is ploughing ahead with initiatives to manage M&G's balance sheet conservatively, keeping a keen eye on costs.
More than 200 employees accepted a voluntary redundancy programme launched in March, which has now closed, corresponding to a cut of around 4% of the workforce.
M&G said it had concluded sub-leases on surplus office space in London and would continue to review its footprint in the second half of the year.
M&G has been tipped as a potential takeover target of Australian investment bank Macquarie Group Ltd MQG.AX amid speculation asset managers may have to consolidate to compete in tough economic conditions.
But Rossi said in March the company is capable of boosting profits independently and had no plans to engage with potential bidders.
($1 = 0.8032 pounds)
Reporting By Kirstin Ridley and Sinead Cruise; Editing by Bernadette Baum
Mga Kaugnay na Asset
Pinakabagong Balita
Disclaimer: Ang mga kabilang sa XM Group ay nagbibigay lang ng serbisyo sa pagpapatupad at pag-access sa aming Online Trading Facility, kung saan pinapahintulutan nito ang pagtingin at/o paggamit sa nilalaman na makikita sa website o sa pamamagitan nito, at walang layuning palitan o palawigin ito, at hindi din ito papalitan o papalawigin. Ang naturang pag-access at paggamit ay palaging alinsunod sa: (i) Mga Tuntunin at Kundisyon; (ii) Mga Babala sa Risk; at (iii) Kabuuang Disclaimer. Kaya naman ang naturang nilalaman ay ituturing na pangkalahatang impormasyon lamang. Mangyaring isaalang-alang na ang mga nilalaman ng aming Online Trading Facility ay hindi paglikom, o alok, para magsagawa ng anumang transaksyon sa mga pinansyal na market. Ang pag-trade sa alinmang pinansyal na market ay nagtataglay ng mataas na lebel ng risk sa iyong kapital.
Lahat ng materyales na nakalathala sa aming Online Trading Facility ay nakalaan para sa layuning edukasyonal/pang-impormasyon lamang at hindi naglalaman – at hindi dapat ituring bilang naglalaman – ng payo at rekomendasyon na pangpinansyal, tungkol sa buwis sa pag-i-invest, o pang-trade, o tala ng aming presyo sa pag-trade, o alok para sa, o paglikom ng, transaksyon sa alinmang pinansyal na instrument o hindi ginustong pinansyal na promosyon.
Sa anumang nilalaman na galing sa ikatlong partido, pati na ang mga nilalaman na inihanda ng XM, ang mga naturang opinyon, balita, pananaliksik, pag-analisa, presyo, ibang impormasyon o link sa ibang mga site na makikita sa website na ito ay ibibigay tulad ng nandoon, bilang pangkalahatang komentaryo sa market at hindi ito nagtataglay ng payo sa pag-i-invest. Kung ang alinmang nilalaman nito ay itinuring bilang pananaliksik sa pag-i-invest, kailangan mong isaalang-alang at tanggapin na hindi ito inilaan at inihanda alinsunod sa mga legal na pangangailangan na idinisenyo para maisulong ang pagsasarili ng pananaliksik sa pag-i-invest, at dahil dito ituturing ito na komunikasyon sa marketing sa ilalim ng mga kaugnay na batas at regulasyon. Mangyaring siguruhin na nabasa at naintindihan mo ang aming Notipikasyon sa Hindi Independyenteng Pananaliksik sa Pag-i-invest at Babala sa Risk na may kinalaman sa impormasyong nakalagay sa itaas, na maa-access dito.
