Market positive

M&G shares rise on ‘resilient performance’

John Foley

John Foley: ‘we have laid the foundations’ (pic: Terry Murden)

Shares in fund manager M&G rose sharply after the company, in its first full year as an independent company, posted a rise in assets under management and administration.

AUMA rose 4% to £367.2bn and the company proposed an increase in its dividend from 11.92p in 2019 to 12.23p per share. This lifted the total payout for the full-year to 18.23p.

Both were enough to offset the sharp fall in adjusted operating profit before tax to £788 million from £1.149bn which reflected head office and debt interest costs associated with the split from Prudential.

John Foley, chief executive, said: “In our first year as an independent company, we have delivered a strong and resilient performance in one of the most challenging operating environments ever.

“We laid the foundations for M&G’s return to growth, including actions to fix Retail Asset Management and the creation of M&G Wealth following the acquisition of Ascentric.

“As responsible stewards of £367.2 billion in Assets Under Management and Administration (AUMA), we are also pivoting the entire company to sustainable investing – a shift which we believe will benefit customers, clients and shareholders, as well as wider society and the planet.

“Our balance sheet has remained robust throughout the COVID-19 pandemic and capital generation was strong at £995 million for the year.

“We remain committed to our ambitious three-year £2.2 billion target for total capital generation to the end of 2022 and to our current policy of a stable or increasing dividends.”

Shares closed 9.7p higher at 214.8p.

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