Fund manager M&G claimed “adverse market movements” caused its assets under management to dive £28bn to £342bn during 2023.
M&G’s adjusted operating profit before tax during the 12 months was £529 million compared to 2021’s £721m as it took a hit losses in its annuity portfolio and foreign exchange costs on its US dollar debt.
M&G said it returned nearly £1bn to shareholders through dividends and share buy-backs and it was on track to achieve £2.5bn operating capital generation target by 2024.
Andrea Rossi, group chief executive officer of M&G, said a transformation programme to drive simplification, unlock growth and deliver £200m cost savings was underway.
He added: “I am pleased with how M&G has performed in 2022. Through exceptional market volatility we have clearly demonstrated the diversification and resilience of our business model, which has enabled us to deliver consistently attractive returns for both our shareholders and for our clients.
“We achieved positive net client flows in asset management and Wealth for the second year in a row driven by the ongoing turnaround in Wholesale Asset Management and increased client inflows into PruFund.”
Rossi said that adjusted operating profits had been impacted by market volatility but had benefited from the contribution of its wealth unit more than doubling.
The results threatened to be overshadowed by news of a potential takeover, after it was reported that Australian financial services giant MacQuaries was mulling a bid for the firm.
Rossi told Reuters in an interview that he would not comment on “market speculation”, but added that he was determined not to break apart the business.
“That’s what our strategic priorities are, that’s what our plan is,” he said. “I think we have all the capabilities within each one of these business units in order for us to unleash profitable growth going forward.”
Shares are trading up over two per cent today following the results.