M&G PLC (MNG)

[scrumpyjack]

M&G's PE is <5, their divi covered more than twice.
If they establish a solid track record they will have been a good buy for me.
But it is a leap of faith buying in at this stage.

V8

I continually worry about what it is that I don't know here. I bought in at a lower price, locking in above a 10% yield. It seems you may have similar doubts at the back of your mind. Just wait and see. MNG is perhaps one of those shares that despite being good to me, I am never quite comfortable with.

The theory is that Pru is the high growth low dividend share, whilst M&G is the mature, no growth, high yield share. Which is why Pru got rid of it.

The other view is that the subsidiary (M&G) is freed from the dead hand of the Pru board who were only interested in the exciting bits of the business. M&G management are now free from that and able to 'focus' on their business and expand successfully.

Depends which you believe!

I have the same decision to make on my holding of Jackson Financial, also spat out (sorry 'demerged' by the Pru) - same story. The shares have risen sharply since being demerged, so so far so good. But not sure whether to hang on for longer.

[daveh]

M&G's PE is <5, their divi covered more than twice.
If they establish a solid track record they will have been a good buy for me.
But it is a leap of faith buying in at this stage.

V8

I continually worry about what it is that I don't know here. I bought in at a lower price, locking in above a 10% yield. It seems you may have similar doubts at the back of your mind. Just wait and see. MNG is perhaps one of those shares that despite being good to me, I am never quite comfortable with.

The theory is that Pru is the high growth low dividend share, whilst M&G is the mature, no growth, high yield share. Which is why Pru got rid of it.

The other view is that the subsidiary (M&G) is freed from the dead hand of the Pru board who were only interested in the exciting bits of the business. M&G management are now free from that and able to 'focus' on their business and expand successfully.

Depends which you believe!

I have the same decision to make on my holding of Jackson Financial, also spat out (sorry 'demerged' by the Pru) - same story. The shares have risen sharply since being demerged, so so far so good. But not sure whether to hang on for longer.

I held both courtesy of PRU (which I still hold). Bought more MNG, sold Jackson Financial shortly after the demerger as they didn't seem to be doing much price wise. Damn (if they've gone up), I'm not going to look as I don't want to know the gains I've missed out on.

[daveh]

acquires investment management firm:
https://www.investegate.co.uk/m--38-g-p ... 30049240B/

M&G plc acquires investment management firm  

M&G plc has announced the acquisition of investment manager TCF Investment (TCF) to become a provider of model portfolio services.  The deal has been approved by the FCA. 

TCF becomes part of M&G Wealth and will be rebranded in due course.

TCF's current service - MAPS - is tailored to meet a range of customer risk appetites and profiles through a collection of multi-asset model portfolios. M&G Wealth will take responsibility for the ongoing management of MAPS and will also launch a new range of portfolios in the coming months. 

[daveh]

Final Results

https://www.investegate.co.uk/m--38-g-p ... 00079432D/

M&G plc full year 2021 results

Continued strengthening of operational performance

Strong capital generation to support £500m share buy-back programme

Improved fund flows and investment in growth underpin longer-term confidence

Operational improvements underpin encouraging financial performance

- Adjusted operating profit before tax of £721 million (2020: £788 million), with the reduction in part due to lower benefits from changes to longevity assumptions

- Assets under management and administration increased 0.8% year on year to £370 billion, including strong net client inflows of almost £6 billion from the Institutional Asset Management franchise and continued improvement in Retail Asset Management flows

- Shareholder Solvency II coverage ratio strengthened to 218%, its highest level since demerger

- £500 million to shareholders by way of a share buy-back programme, which is expected to start shortly

- Second interim dividend of 12.2 pence per share, in line with our policy of stable or increasing dividends

- Key demerger targets completed ahead of schedule: capital generation of £2.8 billion over two years, versus original target of £2.2 billion by end 2022. Annual shareholder cost savings of £145 million achieved a year earlier than planned



Investing for growth: expanding wealth & asset management in UK and Europe

- In early 2022 we strengthened M&G Wealth with the acquisition of IFA Sandringham Financial Partners, a partnership with digital wealth platform Moneyfarm, and the acquisition of TCF Investment, a provider of model portfolio services

- Building sustainable investing capability following agreement to acquire leading impact investor responsAbility (AUMA: £3 billion) as announced in January 2022

- Expanding in Italy through the launch of Future+, a European version of our UK PruFund proposition



Governance

- Edward Braham will become Chair of the Board from 14 March 2022, and subject to regulatory approval, Kathryn McLeland will join as Chief Financial Officer in May 2022



Outlook

- Growth prospects strengthened by pipeline of new propositions, including sustainable investment offerings and Future+ in Europe - competitive differentiators to deepen relationships with key distributors

- Latest target for operating capital generation of £2.5 billion over the next three years to the end of 2024

- Shareholder Solvency II coverage ratio and operating capital generation underpin future dividend policy

6. Dividend to be paid in April 2022

Ex-dividend date          17 March 2022

Record date                 18 March 2022

Payment of dividend    28 April 2022

[BullDog]

Thanks. Today is a good day at MNG. Up around 14%. Cool

[daveh]

Change of leadership:
https://www.investegate.co.uk/m--38-g-p ... 00015521E/

New Chair Appointment and Interim Roles


M&G plc ("M&G"), the international savings and investment business, today confirms the announcement on 24 February 2022 that Edward Braham has been appointed as Chair of the Board with effect from today's date. Edward will also take on the role of Chair of the Nomination Committee.

Fiona Clutterbuck, who has been Interim Chair since January 2021, now steps down from that role and will resume her role as Senior Independent Director.

Clare Thompson, who has been Interim Senior Independent Director since January 2021, also steps down from that role and continues her Non-executive role as Chair of the Audit Committee.

[88V8]

Change of leadership: Fiona Clutterbuck, who has been Interim Chair ...

So she can now cease being a piece of furniture, and return to her primary role of being a character in an Agatha Christie novel.... I am still underwater on M&G, likewise with Phoenix PHNX and Chesnara CSN, all of which have similar yields.

As has been commented on the relevant threads, they are all three candidates for a top-up, and it is hard (for me) to choose between them as potentially staid income generators so I shall just have to ignore the red ink and top them all.

I also hold L&G. And Schroders. And OH has abrdn.
Last time I looked at my sectors - a long time ago - I was overweight financials and I did try to slim down but it has crept up again. Too tempting for an income investor.

V8

[tjh290633]

I have just received my annual house insurance renewal invitation. The heading is "PRU -part of M&G Group" and the correspondence address is "Direct Line House".

I did not realise that this had become part of M&G. Previously Churchill had provided the insurance under the Prudential name. The fine print says that it is underwritten by "UK Insurance Limited". What a tangled web we weave.

TJH

[BullDog]

I have just received my annual house insurance renewal invitation. The heading is "PRU -part of M&G Group" and the correspondence address is "Direct Line House".

I did not realise that this had become part of M&G. Previously Churchill had provided the insurance under the Prudential name. The fine print says that it is underwritten by "UK Insurance Limited". What a tangled web we weave.

TJH

Churchill is a Direct Line brand.

[Dod101]

I have just received my annual house insurance renewal invitation. The heading is "PRU -part of M&G Group" and the correspondence address is "Direct Line House".

I did not realise that this had become part of M&G. Previously Churchill had provided the insurance under the Prudential name. The fine print says that it is underwritten by "UK Insurance Limited". What a tangled web we weave.

TJH

That is indeed a tangled web. UK Insurance underwrites policies issued by Direct Line and is owned by them. Surely Pru is not part of the M & G Group. In fact M & G was once part of the Pru.

If Churchill is a Direct Line brand then that would explain why UK Insurance is the underwriter but what has M & G got to do with it?

Dod

[BullDog]

I have just received my annual house insurance renewal invitation. The heading is "PRU -part of M&G Group" and the correspondence address is "Direct Line House".

I did not realise that this had become part of M&G. Previously Churchill had provided the insurance under the Prudential name. The fine print says that it is underwritten by "UK Insurance Limited". What a tangled web we weave.

TJH

That is indeed a tangled web. UK Insurance underwrites policies issued by Direct Line and is owned by them. Surely Pru is not part of the M & G Group. In fact M & G was once part of the Pru.

If Churchill is a Direct Line brand then that would explain why UK Insurance is the underwriter but what has M & G got to do with it?

Dod

Can't answer the question, but I do know some (all?) Prudential branded investment products are run by M&G.

[monabri]

I have just received my annual house insurance renewal invitation. The heading is "PRU -part of M&G Group" and the correspondence address is "Direct Line House".

I did not realise that this had become part of M&G. Previously Churchill had provided the insurance under the Prudential name. The fine print says that it is underwritten by "UK Insurance Limited". What a tangled web we weave.

TJH

That is indeed a tangled web. UK Insurance underwrites policies issued by Direct Line and is owned by them. Surely Pru is not part of the M & G Group. In fact M & G was once part of the Pru.

If Churchill is a Direct Line brand then that would explain why UK Insurance is the underwriter but what has M & G got to do with it?

Dod

Churchill is indeed a subsidiary of DLG.

https://en.wikipedia.org/wiki/Direct_Line_Group

"The group owns a number of general insurance brands operating within the United Kingdom, including Direct Line, Direct Line for Business, Churchill, Privilege, Darwin, NIG and Green Flag. Direct Line is a company that specialises in selling insurance and other financial services, sold directly to consumers by telephone and the internet"

[idpickering]

Share Buyback Programme of up to £500,000,000

M&G plc (the "Company") announces that, as outlined in its announcement on 8 March 2022, it will commence a share buyback programme to purchase ordinary shares of 5 pence each in the Company ("Ordinary Shares") for up to a maximum consideration of £500,000,000 (the "Buyback").

The Company has entered into an irrevocable agreement with Goldman Sachs International ("Goldman Sachs") in relation to the purchase by Goldman Sachs, acting as principal, of Ordinary Shares. Under this agreement, the Company has instructed Goldman Sachs International to purchase shares up to a maximum consideration of £500,000,000 pursuant to the Buyback.

The purpose of the Buyback is to reduce the share capital of the Company. The Directors consider the Buyback to be in the best interests of the Company and of its shareholders generally, and it is expected that the implementation of the Buyback will enhance earnings per share.

Purchases of the Company's Ordinary Shares pursuant to the Buyback will commence immediately and will end no later than 23 March 2023.

Ordinary Shares acquired by Goldman Sachs will be simultaneously on-sold by Goldman Sachs to the Company. The majority of the Ordinary Shares purchased under the Buyback will be cancelled. The remaining Ordinary Shares will be held in Treasury and then transferred to the Company's Employee Benefit Trust to satisfy obligations arising from awards and options granted to employees under the Company's employee share plans.

Goldman Sachs will make trading decisions in relation to the Buyback independently of, and uninfluenced by, the Company with regard to the timing of the purchases. Any purchase of Ordinary Shares by Goldman Sachs contemplated by this announcement will be carried out on the London Stock Exchange and/or Cboe Europe Limited through the BXE and CXE order books and/or on Turquoise Equities Trading.

Any purchases of Ordinary Shares by the Company from Goldman Sachs under the Buyback will be carried out on the London Stock Exchange in accordance with certain pre-set parameters set out in the agreement between the Company and Goldman Sachs.

Any purchases under the Buyback shall also take place in accordance with (and subject to the limits prescribed by) the Company's general authority to repurchase Ordinary Shares granted by its shareholders at the annual general meeting on 26 May 2021 (the "2021 Authority") and any subsequent authority, Chapter 12 of the Financial Conduct Authority's Listing Rules, the Market Abuse Regulation (EU) No 596/2014 (as in force in the UK and as amended by the Market Abuse (Amendment) (EU Exit) Regulations 2019), the Commission Delegated Regulation (EU) No 2016/1052 (as in force in the UK and as amended by the FCA's Technical Standards (Market Abuse Regulation) (EU Exit) Instrument 2019). The Buyback will be discontinued in the event the Company ceases to have the necessary general authority to repurchase Ordinary Shares. The details of the 2021 Authority can be found here https://www.mandgplc.com/~/media/Files/ ... g-2021.pdf .

The maximum number of Ordinary Shares that the Company is authorised to purchase under the 2021 Authority is 259,990,600.

The Company will make further regulatory announcements to shareholders in respect of purchases of Ordinary Shares under the Buyback as they occur.

https://www.investegate.co.uk/m--38-g-p ... 00078329F/

[idpickering]

Group Solvency and Financial Condition Report.

M&G plc has today submitted its single group Solvency and Financial Condition Report ("SFCR") for the year ended 31 December 2021 to the Prudential Regulation Authority.

A copy of the SFCR is now available on the M&G plc website.

https://www.investegate.co.uk/m--38-g-p ... 00014853H/

[Alaric]

Can't answer the question, but I do know some (all?) Prudential branded investment products are run by M&G.

At one time, they were looking to rid themselves of the Prudential's annuity and life assurance business, to be mostly the long established fund management group M&G. Ironically at one time, M&G was a relative minnow swallowed by the big fish Prudential.

On the general insurance side, it would seem they've kept the Prudential name, but it's really just another front for Direct Line, operating as UK Insurance.

[monabri]

Can't answer the question, but I do know some (all?) Prudential branded investment products are run by M&G.

At one time, they were looking to rid themselves of the Prudential's annuity and life assurance business, to be mostly the long established fund management group M&G. Ironically at one time, M&G was a relative minnow swallowed by the big fish Prudential.

On the general insurance side, it would seem they've kept the Prudential name, but it's really just another front for Direct Line, operating as UK Insurance.

Is Direct Line Group linked to Prudential or M&G?..

Edit.....see previous posts above?

[Alaric]

Is Direct Line Group linked to Prudential or M&G?..

Only as a busness arrangement. Durect Line in its UK Insurance guise has quite a bit of market share, I think the general insurance products offered by both NatWest and Nationwide are UK Insirance.

[idpickering]

M&G plc leadership update: John Foley to retire as Chief Executive.

M&G plc announces that John Foley, Group Chief Executive, has informed the Board of his intention to retire. The Board will now initiate a process to appoint a new Chief Executive, which will be led by Edward Braham, Chair of the Board and of M&G plc's nomination committee. John will continue to serve as Group Chief Executive until a successor is in place.

https://www.investegate.co.uk/m--38-g-p ... 00124438J/

[daveh]

Acquisition of responsAbility Investments AG

https://www.investegate.co.uk/m--38-g-p ... 00010711K/

M&G completes the acquisition of responsAbility Investments AG



M&G plc ("M&G"), the international savings and investments business, has completed the acquisition of Swiss-based responsAbility Investments AG ("responsAbility"), a leader in impact investing, focused on private debt and private equity across emerging markets with approximately USD 3.7 billion in assets under management (as at 31 December 2021).



M&G has reached agreement to acquire 100% of the issued share capital of responsAbility. The acquisition, which has secured regulatory approval, enhances M&G's capabilities in impact investing. It also expands and strengthens M&G's international footprint, adding an investment hub in Zurich, and offices in new markets, enhancing M&G's existing asset origination capabilities.

[daveh]

New CFO confirmed:
https://www.investegate.co.uk/m--38-g-p ... 36251921K/

M&G plc

New Chief Financial Officer Appointment and Interim Role

This announcement replaces the earlier announcement released at 16:07 on 3 May 2022.

M&G plc, the international savings and investment business, today confirms the announcement made on 17 January 2022 that, subject to regulatory approval, Kathryn McLeland has been appointed as Chief Financial Officer with effect from 3 May 2022. Kathryn will also join the M&G plc Board as an Executive Director.