M&G is in talks with big European financial firms to bring its flagship £58bn PruFund range onto the continent, City AM understands
The FTSE 100 listed money manager is seeking partnerships in France and Germany. Under the partnerships, the PruFund model would be used to sell products under new names.
The expansion would build on M&G’s movement into Italy and Ireland last year under the Future brand, which offered investors outside the UK access to a PruFund-style product.
The PruFund range, which was launched in 2004, has more than 450,000 customers making it one of the largest multi-asset funds in Europe. It offers consumers a ‘smoothed’ fund where investors are shielded from the full effects of market volatility. PruFund sales grew to £1.6bn in the first quarter of this year.
The news was first reported by The Sunday Times.
Chief executive Andrea Rossi, who has been in place since October, is under pressure to boost the performance of M&G, which was spun out from Prudential in 2019.
Over 200 members of staff – around four per cent of its workforce – signed up for M&G’s voluntary redundancy programme, launched to help streamline the business.
The asset manager has been the subject of takeover chatter, with Australian finance giant Macquarie rumoured to be interested in making a bid with the intention of splitting up the firm.
Fellow London-listed asset manager Shroeders explored a takeover bid back in 2021 but abandoned it over fears of a culture clash.
Rossi has repeatedly tried to quash takeover rumours and said he would never pursue the break-up of M&G.
In the three months to the end of March, M&G reported a £400m boost in flows helping to lift assets under management to £344bn.
M&G was contacted for comment.