New chief executive rules out break-up of fund manager M&G 

M&G’s new boss has ruled out a split of one of Britain’s best-known fund managers and expects growth despite turbulent markets and the rising cost of living.

Industry veteran Andrea Rossi, who was named chief executive of M&G yesterday, to replace John Foley next month, wanted to get rid of rumors of the £154bn asset management business being sold off from its £193bn retail and savings division. “There will be no breakage,” he said.

But Rossi, a former head of AXA Investment Managers, faces a tumultuous environment, including extreme volatility in financial markets and rampant inflation, partly as a result of the war in Ukraine.

“These are volatile times and my job is to manage the business well, regardless of the external environment, and help our clients manage further investments responsibly,” he said, adding: “I think these are opportunities – then you see winners and losers. With the strong foundation we have, I clearly see it as an opportunity for us.”

M&G’s assets under management fell 6 percent to £349 billion in the first half of 2022, although it posted net customer cash inflows of £1.2 billion.

But shares are down nearly 20 percent as concerns over the pound and the stability of the UK economy escalate.

The appointment of Rossi, who will earn a basic salary of £875,000 plus bonuses, has been approved by UK financial regulators, M&G said.