M&G plc

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M&G plc is a UK-based asset management business, formed in 2017 through the merger of Prudential plc's UK and Europe savings and insurance operation and M&G Ltd, its wholly-owned international investment manager. In Oct.2019, the company was demerged from Prudential plc, and listed on the London Stock Exchange as an independent company.

M&G operates through two brands:

  • Annuities and pensions management for private and corporate clients;
  • Savings and investment fund management of retirement savings, pension funds, investment funds and mutual funds (equities, fixed income securities, multi-asset securities, real estate assets, etc.) for institutional clients and independent managers: private and retail banks, pension plan managers, wealth managers, investment advisors and independent brokers.

M&G plc continues with two customer-facing brands:

  • M&G Investments: an international asset manager for asset management clients globally;
  • Prudential UK: manages long-term savings, investments, retirement solutions and insurance for clients in the UK and Europe, and for asset management in South Africa.ref M&G Investments, Prudential UK, PruAdviser

As an independent company, M&G has a single corporate identity and continues with two customer-facing brands; Prudential for savings and insurance customers in the UK and Europe and for asset management in South Africa and M&G Investments for asset management clients globally.

M&G Investment Management Ltd

M-and-G-Investments-2013.svg
M&G Investments (Municipal & General Securities Company Ltd) is an autonomous investment manager within the Prudential Group, running its own retail and institutional funds operation, and functioning as the asset manager for Prudential in Europe.

M&G invests in and manages a wide range of assets including Equities, Fixed Income and Property. M&G also manages more esoteric assets within the private finance arena such as Structured Products (including CDOs), Leveraged Finance, Project and Infrastructure Finance.

Company

Shareholders

Total float: 99.6%
Source: MarketScreener.svg, Mar.2020

Structure

  • M&G plc
    • The Prudential Assurance Company Ltd, not affiliated in any manner with Prudential plc.ref
      • Prudential International Assurance plc, reg. Ireland, life assurance company, regno. 209956, branded as "Prudential International".ref Website
  • M&G Investment Management Ltd: t/a Prudential M&G, a trading name owned by M&G Investment Management Ltd and used by that company, by Prudential Pensions Ltd and by other companies within the Prudential Group.

Timelines

Up to 1970, it was standard practice to retain a substantial amount of uninvested cash as a reserve for contingencies. Additionally, the bulk of investment income was derived from govt and govt-guaranteed securities such as ConsolsWikipedia-W.svg and fixed-income stocks, with a relatively small percentage from commercial property. See for eg., pp.8,9 By ??, the situation was reversed.

1972, inflation: The erosion of the domestic purchasing power of the currency in Britain ... the investment freedom traditional to the insurance industry in Britain has enabled us to shift the weight of our investments over the years into equities and property which might be expected to show some long-term resilience to the ravages of inflation. == lack of confidence in money as a store of value.

~1972/1973: ? Insurance Companies bill ? AR-1972, p.5

? Vehicle & General collapse ? the insurance industry developed relatively free from statutory restrictions.

  • 1981: Vanbrugh Inheritance Trust was introduced to help the private investor to reduce the burden of capital transfer tax without losing access to existing capital. A Jersey subsidiary was established to manage a currency fund.AR-1981, p.14 The Finance Act 1986 brought in a specific inheritance tax, but Prudential quickly devised "suitable new arrangements".AR-1986

Prudential Portfolio Managers acts as investment advisers to the Jersey-based Vanbrugh Currency Fund, launched in Apr.1981. Prudential Portfolio Managers Ltd, CH

Property Development: property portfolios were traditionally assembled by the acquisition of existing buildings, or through finance arrangements whereby a property company constructed a new building in return for a share in the equity and the Prudential as investor provided all or most of the capital cost. The use of an external developer has generally meant we were able to reduce our level of risk, but in return we had to concede a significant share of profit. In the mid-1970s it was decided that we should undertake a higher proportion of of direct development. We pursued our objective by the acquisition of a small property development company, Edger Investments Ltd, and by the formation of our own in-house development team.AR-1981,p.19

mid-1980s: increasing diversification into non-insurance activities.

M&G Group Ltd

ToDo: www.mandg.co.ukArchive-org-sm.svg global.mandg.com, now M&G plc. Prudential M&GArchive-org-sm.svg

Done: M&G Group plc/Ltd CH, M&G plc CH


  • M&G Real Estate, formerly Prudential Property Investment Management (PruPIM), the real estate investment management arm of M&G Investments, is one of the largest institutional property investors in the UK, with growing investment in the international property market. M&G Real Estate (formerly known as PRUPIM) is a global real estate investment manager, providing integrated services for fund management, asset management and property management. M&G Real Estate, part of M&G Investments, is the real estate investment arm of Prudential plc in the UK and Europe. M&G Real Estate is headquartered in the United Kingdom. M&G Real Estate owns or co-owns properties including Manchester Arndale, Finsbury Circus, Westfield Fashion Square, Westfield Garden State Plaza, Bluewater, Cribbs Causeway, and Fremlin Walk, Maidstone.[4] [Webpage]

Renamed as M&G Real Estate from PruPIM in Apr.2013.ref Jan.2013: Acquired the freehold of the new Hilton Hotel at Terminal 5, Heathrow Airport.ref


M&G plc

  • Oct.2019: M&G plc: M&G Prudential plc was demerged,ref and listed on the London Stock Exchange as a stand-alone business.ref

M&G Group Ltd

  • Jun.2019: Prudential Vietnam Finance Company Ltd was sold to Shinhan Card Company Ltd.
  • Jul.2018: Voyager Dallas Holding Company Ltd, as the company was known at the time, was incorporated and domiciled in the UK as a subsidiary of Prudential plc. The company was set up to act as holding company for the UK and Europe savings and investments business of Prudential plc. In Jul.2018, the company changed its name to M&G Prudential Ltd. In Nov.2018 the company issued share capital as consideration to Prudential plc for the acquisition of The Prudential Assurance Company Ltd, M&G Group Ltd, Prudential Financial Services Ltd and Prudential Property Services Ltd. On 24 July 2019, the Company was re-registered as a public limited company and changed its name to M&G Prudential plc. On 16 September 2019, the Company changed its name to M&G plc. On 20 September 2019, the Company acquired Prudential Capital Holdings Company Ltd, and its subsidiaries, Prudential Capital plc and Prudential Capital (Singapore) Pte. Ltd, from Prudential plc. On 21 October 2019, the Company demerged from Prudential plc and listed on the London Stock Exchange.ref, p.31
  • Mar.2018: Prudential plc announced its intention to demerge M&G Prudential and to float it on the London Stock Exchange.ref In Nov.2018, ownership was transferred from Prudential plc to a new holdco, M&G Prudential Ltd, a subsidiary of Prudential plc.AR-Dec.2018
  • February 2018, the Board of The Prudential Assurance Company Ltd approved a plan to sell its subsidiaries, Prudential Hong Kong Limited and Prudential General Insurance Hong Kong Limited, to Prudential Corporation Asia Limited.ref, p.34
  • Aug.2017: M&G Prudential plc: the Prudential UK and Europe businesses announced they would merge with M&G in order to create a new entity,ref which was described as "a savings and investments business".ref OpenCorporates-sm.svg
  • Nov.2002: Outsourcing: M&G and International Financial Data Services LtdOpenCorporates-sm.svg announced the signing of an outsourcing agreement for IFDS to provide M&G with retail administration services for its UK-based range of funds.ref
    International Financial Data Services is a joint venture between Boston-based State Street Corporation, a financial services company providing investment servicing, investment management, trading services and investment research, and DST Systems Inc, a Kansas City-based provider of shareholder accounting services and proprietary systems. International Financial provides Application Service Provision and Business Process Outsourcing solutions to the global collective investment industry, supporting over 12m accounts for 50+ organisations, based in three locations: Canada, Luxembourg & the UK. ifdsgroup.com, dstsystems.com
  • Oct.2000: M&G was re-registered as a private limited company.CH

M&G Group plc

From M&G Group plc/Ltd, CH, OC

  • AR-Sept.1986: Kleinworth Benson sold most of its shares, retaining ~4%.
  • Dec.1984: Kleinworth Benson held 41.94% ordinary shares; Trustees of the Esmee Fairbairn Charitable Trust held 31.85%; and the Merchant Navy Officers Pension Fund/Ensign Trust plc held 5.15%.[AR-Sept.1984]
  • Mar.1981: M&G Group plc: the company changed its name again.[AR-Sept.1981]

Origins

  • Jun.1976: M&G Group (Holdings) Ltd: White Drummond changed its name.[AR-Sept.1976]
  • M&G Group Ltd, direct subsid of White Drummond, parent co of a load of subsids. See AR-Sept.1974.
  • Jul.1959: White Drummond & Company Ltd was incorporated as a limited company.

  • 1931: First British Fixed Trust, the first unit trust in the UK, was launched. The idea was brought to Britain by a stockbroker impressed by the way American mutual funds had withstood the 1929 Wall Street Crash.ref,ref
  • 1901: Municipal & General Securities Company Ltd was founded as the investment management subsidiary of White Drummond & Company, a civil and constructional engineering company.[1]

References

  1. ^ Our history. Prudential plc. Original archived on Apr.13.2014.