M&G PLC (LSE:MNG) has reported better-than-expected interim operating profit, alongside positive net client inflows.
The asset manager posted positive net client flows, excluding Heritage, of £0.7 billion in the six months ended 30 June 2023, down from last year’s £1.2 billion, remaining positive for a third consecutive year despite known headwinds from UK institutional clients.
Gross inflows to PruFund UK of £3.3 billion are the highest for a six-month period since 2019, M&G said.
Adjusted operating pre-tax profit of £390 million was up 31% from £298 million last year, which M&G said reflected the strength of diversified businesses.
It was also above consensus forecasts of £284 million.
M&G said solvency II coverage ratio remained strong and above the top end of its target range. It raised the dividend by 5% to 6.5p per share.
The firm reported further momentum in Wholesale Asset Management with net client inflows of £1.3 billion, up from £0.8 billion, and continued strong investment performance.
Cost savings initiatives are expected to deliver a £50 million reduction, M&G said.
Andrea Rossi, chief executive officer, said: “I remain confident we have the right ingredients for success that will enable us to continue to deliver attractive outcomes for our clients and shareholders.”