View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. News
March 8, 2022

M&G chief deems investments in Russia ‘unthinkable’

UK insurer and asset manager M&G’s CEO John Foley has deemed any future investment in Russia as ‘unthinkable’ as the firm looks to shed its existing holdings in the country, reported Reuters.

Free Report
img

How attractive are current investment opportunities in Europe?

Europe has been identified as one of the most favorable regions for investors, seeing high investment activity in the past year. Most of these investments have been through Debt Offering, valued at close to $700 billion. The region has provided attractive investments in a diverse set of companies. Companies who tend to major themes such Digital Media, Cloud, Artificial Intelligence, E-commerce, and Big Data are recording the highest number of deals, with Digital Media recording close to 2,000 deals. However, GlobalData’s whitepaper offers a full view of the market, analyzing less successful or attractive points of investment as well, examining statistics on Equity Offering investments and PE/VC deals. Understand how government agencies for economies around the world use GlobalData Explorer to:  
  • Track the M&A and Capital Raising volumes into their target market
  • Identify the top sectors in the target market attracting the investments
  • For any investment segment, identify the top Investors inside and outside the target economy that are already investing in the Segment
  • Assess and showcase the growth potential for various Industries in the target economy
Don’t miss out on key market insights that can help optimize your next investment – read the report now.
by GlobalData
Enter your details here to receive your free Report.

The company has only 0.1% of its assets under management linked to Russia and would divest it is when possible, said Foley.

He added that M&G marked its Russian assets almost to zero and has no plans for further investments in Russia for the foreseeable future.

Foley was quoted as saying: “Russia is an uninvestable market from a ratings perspective, any additional investment is clearly unthinkable.”

M&G did not have funds at risk of suspension.

Foley said: “There isn’t a fund where there is any significant enough exposure into these markets that would warrant our attention.

“We are monitoring the situation all the time but there’s nothing that we need to do.”

Several asset managers, including Pictet, Amundi, and BNP Paribas, were forced to freeze Russia-linked equity funds with over $3bn in assets amid the market turmoil following Russia’s military attack on Ukraine. 

Meanwhile, M&G reported a fall in 2021 pretax profit. The group’s adjusted operating profit before tax stood at £721, compared to £788m in the previous year.

However, the firm’s assets under management and administration rose 0.8% year-on-year to £370bn in 2021.

The firm also announced a £500m share buy-back programme.

Foleysaid: “In light of this performance and our strong capital generation we are able to announce today £500 million to be returned to shareholders by way of a buy-back programme, expected to start shortly.

“Together with dividends paid, we will have returned £1.8bn of capital to shareholders, equivalent to 32% of M&G’s market value at demerger. Alongside this, we have achieved our annual shareholder cost savings target of £145m one year ahead of schedule.”

Free Report
img

How attractive are current investment opportunities in Europe?

Europe has been identified as one of the most favorable regions for investors, seeing high investment activity in the past year. Most of these investments have been through Debt Offering, valued at close to $700 billion. The region has provided attractive investments in a diverse set of companies. Companies who tend to major themes such Digital Media, Cloud, Artificial Intelligence, E-commerce, and Big Data are recording the highest number of deals, with Digital Media recording close to 2,000 deals. However, GlobalData’s whitepaper offers a full view of the market, analyzing less successful or attractive points of investment as well, examining statistics on Equity Offering investments and PE/VC deals. Understand how government agencies for economies around the world use GlobalData Explorer to:  
  • Track the M&A and Capital Raising volumes into their target market
  • Identify the top sectors in the target market attracting the investments
  • For any investment segment, identify the top Investors inside and outside the target economy that are already investing in the Segment
  • Assess and showcase the growth potential for various Industries in the target economy
Don’t miss out on key market insights that can help optimize your next investment – read the report now.
by GlobalData
Enter your details here to receive your free Report.

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. A weekly roundup of the latest news and analysis, sent every Wednesday. The industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Private Banker International