M&G Group ended the first half of 2026 with net inflows of about £2.4bn from the open business, despite the volatile external environment that has characterised markets so far this year.
Altogether, adjusted operating profit for the half came in at £435m, up about 15% year on year, driven primarily by a 24% growth in the asset management arm’s contribution. Adjusted profit from asset management jumped by £31m compared with this time last year, owing to higher recurring revenues and increased fee-based earnings.
The asset management arm of the business surged, with external clients adding £2.2bn to the firm, across both wholesale and institutional. In total, assets under management and administration (AUMA) rose to £387bn, up from £355bn at this point last year.
As part of this, external client assets continued to rise, now at £189bn or roughly 53% of the total AUMA, according to the release.
The report also noted a rising interest in private market solutions, which saw net inflows of £1.3bn over the past six months.
Joseph Pinto, CEO of M&G Investments, identified this increased diversity of clients assets and markets as a particular point of pride for the firm in recent months. “Last year it was just one equity mandate that generated almost 70% of the flows,” he told Portfolio Adviser.
This time last year, net international client inflows came to around £3.2bn, he explained, but one mandate with PGGM represented around £2.2bn of that.
“In the first half of this year, it’s been far more diversified,” he said.
This included more balanced interest between their public market solutions (mostly equities) and private market solutions, specifically private credit, CLOs, and structured credit, among others, he explained.
More broadly, Pinto explained he was also much more pleased with the diversification of flows between regions. “We’ve been deploying a lot more in the United States, in Europe and now in Asia as well,” he said. “That’s pretty much the story for us this year.”
Andrea Rossi, group chief executive officer, said he was pleased with the results for the first half of the year.
“We delivered record adjusted operating profit, strong net inflows and continued growth in BPA volumes, while achieving positive outcomes for our customers and clients.
“We continue to execute on our strategy, successfully driving the group towards high-quality and capital-light earnings, which now account for 80% of total adjusted operating profit.
“Net inflows from open business of £2.4bn reflect the breadth and strength of our offering, with Asset Management delivering £2.2bn of net inflows from external clients, including £0.7bn through our partnership with Daiichi Life Group,” he concluded.
However, it was not all easy for the firm in the first half of the year. IFRS profit after tax dropped into the negatives in the opening six months of 2026, sliding to -£165m. By contrast, in the first half of 2026, this was in profit of £248m, and it ended the year with an IFRS profit after tax of £314m.
Looking ahead to the second half of the year, the team are committed to simplifying the business and driving profitable growth. Currently, the team is targeting adjusted operating profit pre-tax of at least 5% over 2025-2027 and a cost-to-income ratio of at least 70%.
See also: M&G: 83% of investors are confident making investment decisions in volatile markets
