M&G plc reported its asset management business saw net inflows of £2.6bn in the six months to the end of June, compared to net outflows of £0.5bn in the same period last year – something Joseph Pinto, CEO of M&G Asset Management has said was built on investor recognition of continued investment performance.
Referencing UBS research tracking all European listed asset managers, and the creation of a related index, Pinto said M&G ranked first for the past 12 quarters, or three years, on a quarterly basis, providing assurance to clients of performance. Added to this was continued focus on internationalising the business, and accessing more investors globally: 58% of asset management AUMA now comes from international clients, according to the results.
“That’s helped us basically show those great performances to clients. We’ve been deploying our strategy of internationalisation, ie, accessing more and more investors around the world, mostly Europe, Asia, successfully, as you can see by the results.”
“And then we were helped this year by the fact that we’ve seen some rebalancing from US equity to European equity and to some extent Asian equities as well, not only on the back of what happened with tariffs, but also since the election or a bit before the election of Mr Trump, because the US equity market did so well last year that clients wanted to rebalance.”
“We’ve seen demand also for private credit. And we were very well positioned in that respect.”
Regarding the type of clients that demand has flowed from, Pinto noted wholesale clients across Europe and Asia. There was a big mandate from a Dutch pension funds, but other European markets that have done well for the manager include France, Germany and Spain. Italy remains one of the largest markets in wholesale for the business.
Pinto stressed that the advancements of the first half should not be taken as predicting outcomes in the second half. However, he noted that “the pipeline is high”. Private markets are broadening out as a source of not only investor funds being committed, but also investments being made.
The announcement within the interim results repeating the target of Japan’s Dai-ichi Life taking a 15% stake in M&G Plc added that “the partnership will accelerate both our expansion in European private markets and open new potential sources of business flows in Japan and across Asia.”
To this, Pinto added that M&G’s own move to acquire stakes in P Capital Partners – announced earlier this year – and BauMont – announced last year – have added capabilities supporting continued international growth, although this does not reflect working less hard on UK opportunities. Consideration of new products and strategies, approaching defined contribution (DC) clients and local authorities remain in mind for the UK market, he said.
Sustainability
Further to sustainability objectives implemented by P Capital Partners, Pinto stressed the importance of investing in sustainability and impact ongoing.
“We remain…dedicated to the area,” he commented, “and we keep pushing into it in public markets but also in private markets”.
P Capital Partners has a transition fund and are “extremely serious” about Article 8.
Sustainability is “very much embedded in what we do everywhere. And as long as it fits also the client needs. It’s not a ‘trendy’ topic for us, It’s part of who we are. It’s not everywhere either, to be clear. But whenever we do it, we do it extremely seriously.”
Future concerns
M&G’s interim statement referenced the uncertainties facing markets in the first half of 2025, including those linked to US trade policy.
Looking forward, Pinto identified government debts, pressures on rates and inflation as key topics to keep a careful eye on.
Tariffs remain an issue in respect of how economies evolve, and here is too a link to levels of government debt.
Geopolitics are another area. Tensions between China and the US are an example. The topic of defence in Europe, while high on the agenda, necessitates investments but investors need budget visibility, Pinto added.
