M&g Share Discussion Threads

[lord gnome] 28/2/2023 14:32

Surely you mean ker-ching?

[adejuk] 28/2/2023 14:19

i'll do the i ching :-)

[adejuk] 28/2/2023 14:17

i should add that i've been in and out since launch and done well so far.

[adejuk] 28/2/2023 14:12

i bought 25k at 182ish - should have increased
this is all to do with rumours of a TO which are probably groundless
it's trading below nav and historical peak, rsi is toppy but falling.
it's due a re-rate
all TA is favourable
maybe i should add?

[adejuk] 28/2/2023 13:58

Q is
do i sell the spike?

[makinbuks] 27/2/2023 17:27

As an aside I happen to have a pension pot with the Pru which is incidental to my retirement plans but its performance is utterly incomprehensible despite the six or seven pages of regulatory guff that drop through my letter box once a year

[makinbuks] 27/2/2023 17:23

And two good responses thank you, I'll take a look at Moneyfarm, I wasn't aware.

I understand the chinese walls within the distribution chain but as a fairly sophisticated investor have no faith in them simply wouldn't use a tied IFA for just that reason

[1jat] 27/2/2023 17:01

Makinbucks…230;.both good points

1 The IFAs bought by MNG and others need to either become tied or need to provide a range of provider solutions to clients…..the regulators say the Firms need to be able to justify decisions to use an intragroup solution such as the admin platform or DFM solution….and the provider eg the admin platform cannot be used to subsidise internal clients….each business needs to be independently minded although of course the internal politics can stymie full independence.

2 Moneyfarm has very recently launched an App called &me (v silly name I know) for the target market you describe….investments go into discretionary portfolios of funds managed by M&G Wealth (most funds are not provided by MNG).

This is the result of the 20% stake taken by MNG in Moneyfarm.

Further details can be found in the press release dated 31/01/23 on the company website.

[makinbuks] 27/2/2023 16:32

Surely for an IFA business the clue is in the title? How could an independent service supplier be seen as "owning more of the distn chain"? If they lack true independence they will lose credibility and business.

I'd be more interested in what they're doing in the digital space to grow and own more of the distribution chain. There will be a lot of holders in MNG who have IFA's because they are retired or close to retired or at least have decent retirement pots, but the youngsters are not walking through the doors of an IFA, they are downloading apps, rounding up their spending into a savings pot, etc,etc. Thats where MNG needs to be focused

Asset management is another game entirely. I'm not against it per se but I've been through the Standard Life debacle from demutualisation to the Abdn merger and I can't see MNG creating any more value through that sort of strategy

[1jat] 27/2/2023 13:25

IFRS17 gives a boost to the P&L from the PruFund and traditional WP business as any investment returns added to policies get credited to the shareholder as they emerge rather than waiting to crystallise at a claim event.

Last CEO probably favoured the insured business…..current CEO favours asset management…ok with me as long as the Board considers both and puts its cash where it gets the better return…..

[1jat] 27/2/2023 11:33

All good points……the Wealth business is subscale and very much a work in progress.
Market fashion has been to talk up the wealth management market….as having sticky revenues and being a gatekeeper to asset managers.
With asset management seen as low quality business (ie highly volatile and driven by market movements) and Heritage in a natural run off, I cant blame MNG management for thinking they need to create a wealth management business.

….but at the moment it is consuming cash and does not account for much market value….it may come good with enough investment and time….mgmt needs to set out its ambition and strategy more clearly to the market.
Maybe the new CEO will do so soon…

[freedomexpress747] 27/2/2023 10:17

Agree with last poster, a fantastic income generator, conservatively managed, with some hope value. £100bn with profits fund, very good comparative returns over Covid, hence a great annuity stream. Very sticky client money, all it has to do is to beat cash rates over the medium term. Platform mentioned, not very well regarded in my view.

[cjac39] 27/2/2023 10:06

The ifas they bought were overpriced and a waste of time. Ascentric is still lossmaking and its tech needs large investment to remove the overweight people costs. The dfm was also a waste of money. The rest however is incredibly valuable and hence why this is my largest holding by some distance. But of course its value will only come good in a break up. It’s 3 distinct businesses in one after you ignore all the wealth stuff.

[cjac39] 26/2/2023 19:57

1jat - wrong on every level. MNG should not be in wealth space - its a rubbish business that requires scale. ascentric has people costs of 23bps that is going nowhere soon and is competing against seccl and hubwise at 10bps. an awful purchase compounded by all the rubbish bought after eg the ifas, the dfms. they should just stop and break up.

as for JUST pls dont. they have a unique model approvement for their internal model that no one else will get such that anyone buys them and it costs c£1bln of capital. they shoudl close to new biz and be done with.

[makinbuks] 26/2/2023 19:39

Big conglomerates long out of favour in all but the insurance sector. They have to follow suit at some point and focus on their core. Break ups, mergers, M & A all on the table as this happens. I agree scale is the key

[1jat] 26/2/2023 15:01

Personally I would like to see MNG take part in consolidating the industry…through mergers to bulk up….there are some businesses that can be acquired at good prices - eg Quilter, Just that would compliment the Wealth and Annuity businesses that are under developed/sub scale and where additional heft of MNG could do much better together….there will also be asset management opportunities….

A bit of bid speculation is good for my retirement planning…

[unastubbs] 26/2/2023 12:47

if it were to be taken out I'd want more than £3.00. I hold these for income (obviously) so if they went for £3.00 I'd then have to find a share with a yield north of 6% just to get the same amount of dividend return I currently get now with M&G. That's not impossible but tricky right now since I hold most of them already! So I'd want it quite a bit further than £3 and I don't think we're in the right sort of market for that.

[skinny] 26/2/2023 12:45

"Any deal would probably have to involve more than one party — someone to take the asset management business and someone for the life insurance side. Schroders had partnered with insurer Rothesay Life. It’s a fiddly proposition, but the former Chelsea Flower Show sponsor may be ripe for the plucking."

[tuftymatt] 26/2/2023 12:25

I am sure that would be factored into any price and my guess is this would go for closer to what Spud suggested than where we are today.

[cfro] 26/2/2023 11:26

Seems like it could be just rumours right now but if there were to be a proper bid we mustn't forget that being taken out now means missing out on the bumper full-year dividend due in just two months.
Therefore personally speaking i would want to see a decent premium to make up for my loss of dividend.

[spud] 26/2/2023 10:22

Probably go for circa 300p with Schroders in the mix.spud

[tuftymatt] 26/2/2023 09:05

Very positive and that would explain why the price moved to the high it did on Friday 👍🏻

[unastubbs] 26/2/2023 06:24

Oliver Shah in today's Sunday Times, Friday's price rise WAS on the back of bid talk...

[boozey] 25/2/2023 18:00

2wild, I agree the interims were poor but the overall fall was in part due to the FTSE 250 index collapsing last year where Jupiter is a constituent. Anyway am happy with where we are now. Let's hope it helps lift MNG further.