M&G break-up is not on the cards, says new boss

M&G’s new chief executive has ruled out a break-up of the investment and savings group as he was unveiled as the group’s incoming boss.

Andrea Rossi, the former chief executive of Axa Investment Management, said the group’s combination of being an asset owner and asset manager was a “competitive advantage” and that a break-up was not on the cards, despite recent calls for action to drive growth.

M&G said Mr Rossi would join on October 10, when John Foley will retire after seven years in the role.

Mr Foley will remain as an adviser to M&G until December 31.

Mr Rossi told the PA news agency: “There will be no break up of M&G.

“The combination of being an asset owner and asset manager is a very competitive advantage and one of the main reasons I have joined.”

Mr Rossi said he would instead look to focus on organic growth within the group but would consider deal opportunities as long as they “deliver sufficient returns”.

He added that while market turmoil and the cost-of-living crisis may affect appetite among smaller retail investors to save, this was a time for people to stick to savings plans.

He said: “Clearly if you don’t have money to pay for your heating at the end of the month or don’t have money to eat, it’s a concern.

“You may think you don’t have money to put into your savings plan but this is the moment you should try, if you can, to stick to your savings plan.”

He said these are “volatile and unpredictable times” but added: “We invest for the long term and help our clients save responsibly over the long term.”

Mr Rossi has 22 years’ experience in the global insurance and asset management sectors, mainly through his time at Axa.

He has most recently been a senior adviser to Boston Consulting Group but will step down from this role following his appointment at M&G.

M&G demerged from insurance giant Prudential three years ago when its former parent looked to focus on Asia and Africa.

M&G has £349 billion of assets under management and also has a £211 billion retail and savings arm.