M&G 1Q Assets Under Management Fell; Agrees to Buy Ascentric From Royal London
May 27 2020 - 3:17AM
Dow Jones News
By Sabela Ojea
M&G PLC said Wednesday that total assets under management
fell in the first quarter of the year and announced that it has
reached an agreement with Royal London to acquire Ascentric, a
digital wrap and wealth-management platform for U.K. financial
advisers.
The international savings and investments business--which was
spun-off from Prudential last October--said that total assets under
management as at March 31 were 323 billion pounds ($397.1 billion)
compared with GBP352 billion on Dec. 31, 2019.
Its institutional asset-management business performed well
attracting net inflows of GBP5.6 billion for the first quarter of
the year, while its institutional asset-management franchise had
net inflows of GBP2.1 billion. However, this was offset by net
outflows of GBP5.6 billion in its retail asset-management business,
it added.
Adjusted operating profit stood at GBP134 million, which the
company said reflected a strong performance, "offset by negative
mark to market impacts."
M&G noted that its solvency II coverage ratio, a measure of
balance-sheet strength, stood at 168% at March 31, and that it will
still pay dividends of GBP410 million as previously announced.
The deal to acquire Ascentric will bring GBP14 billion of assets
under administration to the firm, strengthening M&G's position
in the savings and investments market, it said.
Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix
(END) Dow Jones Newswires
May 27, 2020 03:02 ET (07:02 GMT)
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