LONDON (ShareCast) - (Sharecast News) - M&G on Wednesday reported steady profits for the first half, though the investment manager saw strong net flows from open business.
Adjusted operating profit before tax came in at £378m for the six months to 30 June, more or less unchanged from £375m the year before, as growth was held back by a £8m FX loss in asset management.

However, adjusted profit after tax jumped to £248m, from a £56m loss previously, due to a significant improvement in short-term fluctuations in investment returns and mismatches arising on application of IFRS 17, M&G said.

Net flows from open business totalled £2.1bn, a £3.2bn swing from the £1.1bn of outflows reported last year, helped by £2.6bn of net inflows from external clients in asset management.

"This growth has been supported by our market leading investment performance and continued international expansion," said chief executive Andrea Rossi.

"Today, 58% of our Asset Management third party [assets under management and administration] comes from International clients, up from 37% five years ago. This cements our position as a leading international active asset manager, with an established footprint in Europe and growing access to attractive Asian markets."

The interim dividend inched higher to 6.7p from 6.6p per share, in line with the dividend policy.

Looking ahead, M&G said it was confident in delivering its strategic priorities and financial targets, adding that the business is "well positioned navigate the current uncertain economic and geopolitical environment due to its diversified business model, international footprint, compelling products and services, investment capabilities and expertise".

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