M&G’s has suffered net client outflows of £1.5bn during the first half of 2024, compared to net inflows of £700m during the same timeframe last year.
In the firm’s latest half-year results, published today (4 September), adjusted operating pre-tax profit weighed in at £375m, a 3.8% dip compared to H1 2023’s profit of £390m, and a 52.9% fall compared to H2 2023’s pre-tax profit of £797m.
IFRS losses after tax amounted to £56m, compared to a £309m profit during H2 last year and a £75m profit during H1 2023.
While operating capital generation came to £486m, less than half of what was made during H2 2024 and a £19m fall compared to the same timeframe last year, total capital appreciation more than doubled compared to H2 2024 at £813m. It also marked a ten-fold increase compared to capital generation of £73m during H1 2023.
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In total, assets under management as at the end of H1 2024 stood at £346.1bn, compared to AUM of £343.5bn at the end of last year.
In terms of performance, 62% of M&G’s funds achieved top or second-quartile total returns over three years, while 66% achieved the same feat over five years. In institutional asset management, more than 70% of funds have outperformed their benchmarks over both three and five years.
Andrea Rossi, group chief executive officer, said: “Over the last 18 months, we have made meaningful progress transforming M&G by focusing on our strategic priorities: financial strength, simplification, and growth. Against the backdrop of a challenging market environment in the first half of the year, we have delivered another resilient financial performance with adjusted operating profit and capital generation nearly matching last year’s excellent results.
“We have materially improved the financial strength of the business lifting our shareholder Solvency II coverage ratio to 210%, a very strong position. And we tackled our leverage too, reducing debt by £461m.”
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He added that the firm’s simplification agenda “continues at pace”, with £121m in cost savings having been made so far.
“We are continuing to push further on our strategic priorities, combining our Life and Wealth operations to support the acceleration of our growth plan in the UK retail market,” Rossi said. “We also see growth opportunities in our international footprint and in the broadening of our product offering.”
