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Can’t complain about the dividend one of the best out there and this is during a pandemic ;)
good results and almost 9% yield!
Looks great to me 12.23p dividends. fum grown at 367 billion .
outflows 6.6b v 5,1 b inflows .
solvency 182%
A good ending to the day.
Good luck everyone for tomorrow.
Results are on Tuesday 9 March.
The dividend and the ex dividend date should be part of the announcement, expect atleast a couple of weeks notice on the ex-div date, but probably in March.
Is the declaration date for divi tomorrow???????????
Add fee pressure and cost inflation to lower assets under management and it is tough for pure asset managers......
Asset Management has historically been one of the easier finance businesses to set up...we have way too many funds and asset managers at present, hence there will continue to be consolidation to gain economies of scale.
AMgrs are looking to enter wealth management where fees are higher and risks lower.
Karv the risk to all fund managers is rising rates causing stock market falls. Imv the rate rises will be tiny but it is what others think that counts . I am adding here.
Karv
I think the balance of risk / reward is on the upside.
Assets under management will have been rescued by the market recovery, the IFDL (ascentric) acquisition brings a further 14bn.
Probably an improved insurance result and a steady asset management out turn.
I suspect the dividend will be as expected, at worst flat on 2019.
Progress on the capital plan will be important it is his that supports the dividend while the business is reshaped. ,remember there is 100m tied up in the annuity reinsurance deal, this goes to court later in 2021 and is probably just delayed rather than not achieved.
The change to corporation tax rates could be a nasty surprise, but it may not be reflected in this years deferred tax number.
With my limited knowlelge of MNG learning by the day, I am fairly confident from what I have seen from other companies reporting that the FUM will go up due to the market movements.
Inflows and outflows will be unknown factors.
The dividend I think will be safe I am more confident of this than I was with AV, HSBC, and others.
Some possible RISK v REWARD
REWARD A three-year target of £2.2 billion capital generation is doing well, FUM grows, inflows grow, If the dividend is maintained or grows it will be in the top section of FTSE stocks for paying dividends in 2021, with a 9%+ dividend causing a 5% rise and as markets get used to this fact The confidence will grow to cause a 10% to 20% rise in the share price.
RISK Everything goes horribly wrong with FUM, OUTFLOWS, DIVIDEND and the stock goes down.
I was lucky with my timing on market movements with my investment in MNG on Feb 26th currently running at over 7% up which gives me a kind of safety net, I do wonder if my rose-tinted glasses are working overtime sometimes, why are others are not seeing what I/we see. What risk do others see that we do not? FORTUNE FAVOURS THE BOLD
malvolio
The SOlvency II regime did no favours for some UK lines of business requiring a lot of extra capital to make them exceptionally safe....anything with a guaranteed benefit was negatively impacted.
I doubt the Bank of England will change many areas of SII (there is no regulatory benefits and historically regulations only get tighter) so any benefit to individual companies is highly speculative until there are firm proposals. One area where change is more likely is the capital required to back long term infrastructure assets (protecting them from risk of downgrades and lower future returns) This is an area the govt wants to encourage, so a more favourable treatment may be permitted over time insurers may be able to rotate investments into this area and release some capital..
I would not change my investments on such speculation.
Coming late to this so don't know if this has been touched on previously, so stop me if you've heard this one before ...
That FT piece, published last March, refers to EU Solvency 2 Directive.
Treasury is now reviewing legislation in light of Brexit.
Part of Solvency 2 relates to "risk margin buffer."
Recent piece in Investors' Chronicle quoted one source as estimating easing this buffer could give a 12 per cent one-off boost to book value of M&G whose life policies are in run-off .
The boost would be down to two factors - increase in earnings, and gain in value of business written pre-Solvency 2.
https://www.ft.com/content/2096d5a8-62a9-11ea-a6cd-df28cc3c6a68
https://www.ii.co.uk/analysis-commentary/investors-back-mg-despite-baptism-fire-ii513182
AVIVA solvency fund up 8% in 6 months though the Singapore asset sale might have boosted this some, but this should still be a good sign of NMG solvency fund and AUM.
This should give some protection for the dividend to be protected.
let us just hope that inflow beat outflows then it a win-win.
Sorry about the acronyms. I will try not to use them.....but some typos (or predictive text errors) are inevitable.
I predict 2022 will be a bumper year ahead of the new corporation tax rate.....and 2023 will be poor by comparison.
Brilliant analysis, but your casual acronyms are sometimes unfamiliar Jatw. I looked up NCCF: Net Client Cash Flow, of course!
Lots of points of interest in M&Gs first full results, hoping they come out fighting.
See SP rising as investors buy for divi. £2.12 end of week???
MNG needs to show growth beyond market movement.
UK purchase of ascentric starts to build abetter wealth management presence in UK.
But asset management fees are under pressure so NCCF will be important and cost controls.
Global asset management and prufund to Europe were growth strategies.....let’s see how they are doing with those objectives.
last messages ignore it chatbox joined together two lists of chats and numbers
M&G 2019 final Assets under management Man group 2019 final results FUM 117.7 billion,
and administration 2019 £352 billion. 2020 interim FUM down 8% 108billion
M&G 2020 interim 339 billion 3rd quarter FUM 113 billion
M&G 2020 final ??? billion Final 2020 FUM 123 billion
I know that EMG and M&G are not the same but some aspects are which give me hope about the future results.
All so how that the market generally did better at the end of 2020.
Could M&G follow Man group on good news record year for funds under management?
Man group in a record year for funds under management maybe some of this positive movement could have rubbed off on M&G.
Man group 2019 final results FUM 117.7 billion,
2020 interim FUM down 8% 108billion
3rd quarter FUM 113 billion
Final 2020 FUM 123 billion
The dividend depends on capital generation....perhaps more than profits in the short term (3 yrs).
The annuity book and WP transfers will pay the debt down and dividends while the asset management business is reshaped for lower fees.
I have no doubt they can pay dividends at this level, unless there is a severe correction. So I am expecting the SP to rise and yield fall from here.
In terms of share price recovery from last years precipitous drops, wealth managers have done best (now slightly up), followed by insurers (still 10% down) and asset managers bring up the rear 20-30% down. It seems clear the market is valuing WM earnings higher than AM earnings, because they are stickier and higher margin, with AM fees under pressure.
A very good day today. let us hope tomorrow brings more people on board as we head towards the results.
Since June 30th markets have gone up between 5% and 20% so their funds should be looking a lot healthier as long as the withdraws have been kept under control and new money has been coming in, I suspect that is why they cut their fees.
Cutting a dividend always looks so bad for a company that you'd have to think they started paying out divis at a level they were comfortable with.