The new CEO rules out the dissolution of the fund manager M&G

New M&G CEO shrugs off market turbulence, rules out breakup of UK fund manager







Confident: New M&G boss Andrea Rossi (pictured) tried to dismiss talk of breaking up the business

M&G’s new boss has ruled out breaking up one of Britain’s best-known fund management companies and expects growth despite turbulent markets and rising costs of living.

Industry veteran Andrea Rossi, who was appointed chief executive of M&G yesterday, taking over from John Foley next month, sought to dismiss talk of separating the £154bn asset management business from its retail division. and savings of £193 billion.

“There will be no break,” he said.

But Rossi, the former head of AXA Investment Managers, is facing a tumultuous environment, including extreme volatility in financial markets and runaway inflation, in part due to the war in Ukraine.

“These are volatile times and my job is to manage the business well, regardless of the external environment, and to help our clients manage more investments responsibly,” he said, adding: “I think these are opportunities – that’s when you’ll see winners and losers.” Clearly, with the solid base we have, I see it as an opportunity for us.’

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

But stocks are down nearly 20 percent as concerns about the pound and the stability of the UK economy mount.

Rossi’s appointment, who will earn a base salary of 875,000 pounds sterling, plus incentives, has been approved by Britain’s financial regulators, M&G said.