UK asset manager M&G’s launch of a wealth management business last week has been called “credit positive” by ratings agency Moody’s.
According to Moody’s, demand for retail investment products has increased as more UK consumers continue to build their pensions and take advantage of reforms allowing them to invest retirement savings.
M&G Wealth Management, which has £28 billion of assets under management and administration, was called credit positive as it increases the firm’s access to this growing market segment.
“An ageing population and shortfall in retirement savings support growth in the UK retail savings and investment market. Growth is also supported by 2015 pension reforms that give consumers more freedom to invest their retirement savings,” Moody’s said in a statement.
Moody’s added that growth in the retail market has created “attractive” opportunities for asset managers because margins on retail and wealth management products are comparativelyhigh, despite some competitive pressure.
M&G Wealth Management brings together Ascentric, a digital wealth manager that M&G acquired from life insurer Royal London, and M&G’s existing UK retail investment businesses.
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