Shares in asset manager and insurer M&G (MNG) plunged more than 3% to 230.5p in morning trading as investment outflow worries continued to trump operating profits that came in ahead of market expectations.
The FTSE 100 business saw an £800 million outflow from its retail arm - which includes the flagship Prufund - shocking analysts who had anticipated a largely flat flows performance. Property fund redemptions and pension service issues were given as the chief reasons.
Total assets under management and administration increased by £2.8 billion to £370 billion in the six months to 30 June 2021, with positive market and other movements of £8.1 billion more than offsetting Savings and Asset Management net client outflows of £2 billion and expected redemptions of £3.3 billion in the Heritage business.
Institutional assets under management recorded a positive inflow of £2.2 billion.
PROFITS MAKE GAINS
Total adjusted operating profits of £327 million, marked an increased of 6% year on year, and was 12% ahead of consensus expectations. The retail and institutional asset management businesses experienced a marked divergence in performance.
The group has declared an interim dividend of 6.1p.
‘Institutional assets under management reached a record £89.7 billion following net client inflows of £2.2 billion, primarily from European clients,’ said chief executive John Foley.
Looking forward the group has suggested that the institutional asset management business is well positioned for growth.
According to management there is a robust pipeline of new opportunities, citing considerable interest in the group’s sustainable investment offering.
