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M&G posts net asset management inflows in Q1
Global Banking & Finance Review®
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LONDON (Reuters) – M&G recorded 1 billion pounds ($1.25 billion) of net inflows into its wholesale asset management
LONDON (Reuters) – M&G recorded 1 billion pounds ($1.25 billion) of net inflows into its wholesale asset management business in the first quarter, the British insurer said on Thursday, offsetting expected redemptions from institutional clients.
The group said net client inflows, excluding Heritage, stood at 0.4 billion pounds, despite redemptions triggered by the ‘mini-budget crisis’ in September 2022. The figure was up from 0.3 billion in the comparative 2022 period and helped to boost the firm’s assets under management and administration by 2 billion pounds to 344 billion pounds.
“Notwithstanding an uncertain external environment, we are building on the inherent strengths of our differentiated business model, delivering profitable growth alongside attractive shareholders returns,” said Chief Executive Andrea Rossi.
($1 = 0.8032 pounds)
(Reporting By Kirstin Ridley, editing by Sinead Cruise)
Asset management refers to the systematic process of developing, operating, maintaining, and selling assets in a cost-effective manner. It involves managing investments on behalf of clients to achieve specific financial goals.
Net inflows refer to the total amount of money that is invested in a fund or investment product minus the withdrawals made by investors. Positive net inflows indicate that more money is being invested than withdrawn.
A financial crisis is a situation in which the value of financial institutions or assets drops significantly. It often leads to a loss of confidence in the financial system and can result in economic downturns.
Institutional clients are organizations such as banks, insurance companies, pension funds, and mutual funds that invest large sums of money in financial markets. They typically have different investment strategies compared to individual investors.
Assets under management (AUM) refers to the total market value of the investments that a financial institution or investment manager manages on behalf of clients. It is a key metric for assessing the size and success of an investment firm.
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