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(Recasts with CEO comments, adds shares, analyst)
By Carolyn Cohn
LONDON, Aug 12 (Reuters) - M&G is planning to launch
its flagship Prufund retail savings product in mainland Europe
by year-end, it said on Wednesday, as the British insurer and
asset manager reported above forecast first-half profit.
M&G, which was spun out by parent Prudential last
year, has signed memorandums of understanding (MOUs) with two
banks in Europe to distribute Prufund, Chief Executive John
Foley told Reuters. He declined to name the banks, citing
confidentiality agreements.
The 136 billion pound ($177.4 billion) Prufund, which pools
long-term investments, saw net inflows of 800 million pounds in
the six months to end-June.
Overall net outflows from savings and asset management
totaled 4.1 billion pounds, however, as retail investors pulled
money out during the coronavirus-led market sell-off.
"The pandemic was obviously unhelpful, people ran for cash,"
Foley said, adding that going forward: "The basic drivers don't
change, people still need to save for their retirement."
Assets under management and administration totaled 339
billion pounds at end-June, above 329 billion seen in a
company-supplied consensus poll.
Adjusted operating profit fell 57% to 309 million pounds,
slightly ahead of the 299 million pounds forecast. Extra costs
related to the demerger contributed to the fall in profit, M&G
said.
The pandemic has hit insurers and asset managers across the
board.
Asset manager Standard Life Aberdeen last week
recorded a 30% drop in pre-tax profit, while life insurer Legal
& General posted a 2% fall in first-half operating
profit.
M&G's shares were up 2% at 178 pence at 0716 GMT, one of the
strongest performers in the FTSE 100. JPMorgan analysts
described the results as "solid", reiterating their "overweight"
rating.
M&G said it would pay an interim dividend of six pence per
share, in line with forecasts.
($1 = 0.7668 pounds)
(Reporting by Carolyn Cohn, editing by Sinead Cruise and Emelia
Sithole-Matarise)
