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M&G posts record profit as Europe sale boom offsets weak UK
by Dylan Lobo on Mar 12, 2014 at 10:01
It has since emerged the firm is represented on Hargreaves Wealth + list of 27 discounted funds through Tom Dobell's M&G Recovery fund, which has cut its standard annual charge from 0.75% to 0.65% to be on the platform.
However, in today's results, M&G indicated it is unlikely to make sweeping changes to its pricing structures.
'It is still too early to offer a definitive assessment of the impact of the retail distribution review, although we do expect more focus in the market on price. In the past few weeks, platforms have begun to disclose their own service pricing and any special fund fees agreed with asset managers,' the firm told the market.
'Those managers with strong brands and a reputation for investment performance will be expected to better withstand any such pressures on asset management fees.'
After a period of strong sales M&G said it expects business to return to 'less elevated' levels in 2014.
Yet it still confident it can build 2013's record-breaking profit.
'The business remains focused on delivering excellent investment performance and service to its clients while continuing to seek diversification by both asset class and geography,' it said.
'It is the commercialisation of this investment performance through the acquisition of new fund flows that produces attractive profits and cash flow for the group.'
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