M&G has reported positive net flows of £400m during the first quarter as its wholesale business performed strongly.
Net inflows to wholesale asset management hit £1bn, while M&G Wealth booked a £500m net inflow to its PruFund range during the quarter.
The firm is in the midst of a £200m cost cutting drive, and in relation to this M&G said 200 staff, 4% of the total, have now accepted a voluntary redundancy offer. The scheme was launched in March is now closed. The majority of these departures will occur between Q4 2023 and Q1 2024.
M&G’s total assets under management reached £344bn in the first quarter, up slightly from £342bn at the close of 2022.
Other notable figures from the trading update include a £900m net outflow from the institutional asset management business, and a £200m net inflow for its wealth unit as a whole.
Group CEO Andrea Rossi (pictured) said: “M&G started the year building on our strong momentum from 2022. At full-year results we identified three priorities for the group: maintain financial strength through capital discipline, simplify the business, and deliver profitable growth focusing on asset management and wealth.
“I am pleased to say we have made good progress on each of those fronts and are on track to deliver on our ambitious targets.
“I am particularly encouraged by the £1bn net client inflows achieved in wholesale asset management in just three months,” Rossi continued. “Thanks to this success, we more than offset the expected redemptions from institutional clients and drove inflows into high-margin propositions.
“Much of this growth has come from our home market, the UK, where we were amongst the ‘top five’ managers by net flows in the period, ending a long period of subdued performance.”
