New M&G chief exec shrugs off market turbulence as he rules out break-up of the UK fund manager
Confident: New M&G boss Andrea Rossi (pictured) sought to dismiss talk of splitting the business
The new boss of M&G has ruled out breaking up one of Britain’s best-known fund management companies, 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, replacing John Foley next month, sought to dismiss talk of separating the £154billion asset management business from its £193billion retail and savings division. ‘There will be no break-up,’ he said.
But Rossi, a former head of AXA Investment Managers, faces a choppy environment, including extreme financial market volatility and rampant inflation, partly due to war in Ukraine.
‘These are volatile times and my job is to manage the business well whatever the external environment and help our clients manage further investments responsibly,’ he said, adding: ‘I think these are opportunities – it is when you will see winners and losers. Clearly, with the strong foundation we have, I see it as being an opportunity for us.’
M&G’s assets under management dropped 6pc in the first half of 2022 to £349billion although it posted net inflows of cash from clients of £1.2billion.
But shares are down almost 20 per cent as worries about the pound and the stability of the UK economy escalate.
The appointment of Rossi, who will earn a base salary of £875,000, plus incentives, has been approved by Britain’s financial regulators, M&G said.