M&G net inflows strengthen despite AUMA decline

(Sharecast News) - Savings and investments business M&G reported a "resilient" start to the year on Thursday, with group assets under management and administration edging down to £371bn at 31 March from £376bn at year‑end, as modest market weakness offset improving business flows.

However, despite the AUMA decline, M&G said net flows from open business came in at £600m for the quarter, a sharp improvement on the £100m outflow recorded a year earlier, supported by stronger wholesale activity and steady contributions from the group's life operations.

In asset management AUMA stood at £344bn, broadly unchanged since the start of the year and 10% higher than in the first quarter of 2025, with the division delivering net inflows of £700m, compared with flat flows a year earlier, driven by £800m of wholesale inflows that more than offset subdued institutional activity. M&G said momentum was evident across both public and private markets, with £400m and £300m of net inflows, respectively, supported by continued client demand for European equities, structured credit and impact strategies.

Life AUMA slipped 2% to £188bn, reflecting "modest adverse market movements" and expected outflows from legacy books. PruFund saw small net outflows of £100m in the period after market volatility in March offset a positive start to the year, though M&G said flows had stabilised in April and were expected to return to positive territory over the remainder of FY26, helped by the planned launch of PruFund on third‑party adviser platforms.

The FTSE 100-listed group also highlighted progress in bulk annuities, having launched its with‑profits BPA solution and completed an initial £300m transaction, with volumes expected to grow year‑on‑year and skew towards the second half.

Chief executive Andrea Rossi said: "We have made a strong start to 2026, with net inflows in Asset Management, driven by demand from Daiichi Life Group and other external clients, and the completion of our first With-Profits Bulk Purchase Annuity deal in Life.

"Thanks to a strong new business pipeline, the introduction of our innovative With-Profits BPA, and the upcoming launch of PruFund on third-party adviser platforms, we are confident in our ability to deliver continued growth this year."

As of 0900 BST, M&G shares were up 0.23% at 306p.

Reporting by Iain Gilbert at Sharecast.com

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