* Inflows 1.2 bln stg
* AUM 349 bln stg
* Operating profit 182 mln stg
* Shares up 1.9%
LONDON, Aug 11 (Reuters) - M&G recorded net inflows
into its asset management business in the first half, the
British insurer and asset manager said on Thursday, helping its
operating profit to come in above forecast and sending its
M&G, which split off from Prudential in 2019, has
suffered from net outflows and failed to boost its share price
A reduction in fees, improved risk analysis and
rationalisation of some funds enabled M&G to post inflows from
retail and institutional investors totalling 1.2 billion pounds
($1.47 billion) versus 2.0 billion in outflows a year ago.
"We've applied a lot of medicine and it's worked," CEO John
Foley told Reuters, adding the firm had already won a "couple of
significant mandates" from institutional investors in the second
M&G suffered a 44% fall in adjusted operating profit to 182
million pounds, but beat analysts' expectations of 144 million.
Insurers and asset managers have faced hits to their
investment income and assets under management as a result of
market shocks this year, while high inflation is encouraging
potential customers to economise.
Rival abrdn's shares slid this week after its
half-yearly profit missed expectations.
M&G's assets under management and administration dropped 6%
in the first half to 349 billion pounds, but again this was
above forecasts of 340 billion pounds.
Foley said M&G could make further acquisitions to strengthen
its wealth business after buying financial advice provider
Continuum this month, though he added valuations are high.
M&G's shares were up 1.9% at 0726 GMT, one of the top
gainers in the FTSE 100. KBW analysts described the
results as "respectable", reiterating their "outperform" rating
on the stock.
Foley, who earlier this year announced plans to retire, said
he had not yet set a date for his departure. A succession
process is underway led by Edward Braham, who became chair in
M&G said it would pay an interim dividend of 6.2 pence per
($1 = 0.8178 pounds)
(Reporting by Carolyn Cohn, editing by Sinead Cruise and David