Tel Aviv Institutional Conference March 12 th 2018 Brice Anger, Country Head M&G France & Israel With Jonathan Labaton, M&G Representative in Israel
M&G Investments Ownership Structure: Prudential plc - A strong sponsor Balance Sheet Mike Wells strength Group Chief Executive S&P A+ Asia US UK/Europe Moody ’ s A2 Fitch A Ratings for LT Seniors current as at 29 June 2016 Prudential South Prudential Jackson National Life UK & Europe Africa Corporation Asia Insurance Co (US) Insurance Operations Bernard Fick Tony Wilkey Barry Stowe Clare Bousfield Chief Executive Chief Executive Chief Executive Chief Executive M&G Prudential , John Foley , Chief Executive the combined business will manage $450 billion Eastspring PPM America, Inc. M&G Investments Investments of assets for more than Anne Richards Guy Strapp Mark Mandich 6 million customers. Chief Executive Chief Executive Chief Executive 2 Source: M&G management information, August 2017
Fund management overview All about active asset management • Founder of the mutual fund industry in the UK • Fund manager for a wide range of retail and institutional clients including the internal life fund of Prudential plc – 68% of the UK ’ s top 50 pension schemes* – 44 UK Local Government clients – $11bn from third party European insurance companies • Fund management centralised in London • 496 investment professionals across the full range of asset classes 3 Source: M&G, 30 June 2017. * S&P Money Market Directories as at December 2016.
A UK based company …
… very visible in ski resorts across Europe Switzerland 5
M&G assets under management Breakdown of M&G total assets: $365bn By asset class By client type Cash $19bn Property Retail $32bn Internal Equities $94bn $171bn $81bn Fixed Institutional Income $100bn $233bn Total assets under management of $365 billion Source: M&G, 30 June 2017 . Conversion rate: £ 1 = US$1.29895 6
M&G assets under management Significant scale across all major asset classes • Fixed Income FI Breakdown by asset class* ( £ bn) – Largest private credit investor in Europe and 2nd largest Other Infrastructure in the world*** Instruments**, Equity, $3.8 Index Linked $5.2 Government Long Lease – Bonds, $10.6 Property, $8.2 Ability to structure solutions to meet client needs Private debt, • Real Estate $30.6 Government Bonds, $36.3 – World ’ s 6 th largest manager of real estate separate accounts^ High Yield, $16.4 – Experienced and well resourced global platform • Equities & Multi-Asset – Innovative funds across the asset classes, each designed to meet specific client requirements Investment Grade Credit, $131.1 – Ability to structure multi-asset solutions Trusted partner and strong alignment of interest as asset manager for Prudential Source: M&G, 30 June 2017. *Please note, the constituents of methodology of the Fixed Income assets breakdown may differ slightly to the overall Fixed Income AUM due to differing methodology and the inclusion of the 7 separation of Infrastructure equity and Long Lease Property **Includes derivatives, non-cumulative preference shares and convertible bonds. *** Based on figures quoted in Private Debt Investor magazine as at 1 November 2017 based on inflows over the past five years. ^Institutional Real Estate, Inc ‘ Global Investment Managers 2016 ’ as at 31 st December 2016.
MIFID impact our communications Marketing EQUITY: UNPRI A+ Strategy & Governance 154 holdings where M&G owns 5% or more of the company equity Score 2017 INFRASTRUCTURE: IN AODP Infracapital ’ s significant equity stake 4 th Global Climate allows M&G to drive the ESG agenda Index for Asset Managers and promote ESG best practice FIXED INCOME: TIER ONE Significant funder of UK solar UK Stewardship Code energy capacity REAL ESTATE: SENIOR ADVISORY 6 funds awarded Greenstars in the 2016 Global Real Estate COMMITTEE dedicated to ESG Sustainability Benchmark Survey 8
Our history • Founded as M unicipal and G eneral Securities 1901 • Launched Europe ’ s first mutual fund for the general public 1931 • Acquired by UK insurer Prudential plc 1999 • First subsidiary outside the UK founded in Germany; 2001 subsequently, entering further markets in continental Europe and, since 2012, Asia • Today we manage assets of $365bn 2017 (as at 30 June 2017) • People are our greatest asset – employing more than 1,900 globally 9 Source: M&G, 30 June 2017
M&G Investments Distribution across the globe Netherlands* Norway Sweden Finland Belgium 2010 2011 2010 2011 2014 Denmark UK* 2011 1931 Germany* France* 2001 2007 Luxembourg Spain* 2002 2005 Austria* 2001 Portugal 2015 Greece 2016 Israel 2017 Japan* 2016 Asia 2011 USO / LatAm Singapore* 2015 Hong Kong* Chile 2006 Switzerland* Italy* 2005 2003 Funds registered local offices To interact with our clients locally * 10 Source: M&G internal data as at Feb 2018
M&G Investments Leading brand awareness across Europe Cross border brands M&G brand at market level Rank Group name Country Rank 1 BlackRock UK 2 2 JP Morgan Italy 2 3 Fidelity Spain 4 4 Franklin Templeton France 7 5 M&G Germany 8 6 Schroders Austria 9 7 Deutsche Asset & Wealth Management Switzerland 11 8 Invesco Sweden 17 9 Pictet Belux 30 10 Aberdeen Netherlands 38 Top five UK groups by primary business drivers Brand Product Sales & account Marketing and Pricing & Rank preference quality management communications costs 1 Schroders Schroders Schroders M&G Vanguard 2 M&G M&G M&G Schroders Schroders 3 Invesco Invesco Standard Life JPMorgan Fidelity 4 Artemis BlackRock Fidelity Fidelity BlackRock 5 BlackRock Jupiter BlackRock Invesco Baillie Gifford 11 Source: FERI Fund Brand 50 report, March 2015
Distribution channels Distribution support tailored to client requirements Institutional Discretionary Partnerships Advisory Direct (since 2007) • Investment • Asset managers • Fund • Wealth • Total: of 184,000 consultants (fund of funds) supermarkets managers Direct customers • Pension funds • New model • Discretionary • Life company advisers managers links • SWFs • Stockbrokers • Pension links • Financial planners • Wealth • Offshore links • Nationals managers • (Branches and • Networks • Banks head office) • Family offices • Key provincial IFAs • Charities • Mass IFA market (UK only) UK, Europe UK, Europe & Asia UK, Austria, Germany, France, Italy UK (all markets), Asia 12 Source: M&G, 31 December 2017
M&G Investments A history of firsts in the UK First high yield corporate First bond fund commodity fund First recovery equity 1998 fund First unit 1994 trust for 1976 charities First 1971 mutual fund 1969 First 1964 corporate 1961 bond fund First 1954 Japanese 1931 equity First fund equity income First fund regular savings plan 13
M&G Investments … and the spirit of innovation continues M&G M&G M&G (Lux) M&G (Lux) M&G (Lux) M&G M&G M&G M&G M&G Income Global Global Absolute Global Global Optimal Global Dynamic European Allocation Floating Target Return Listed Income Dividend Allocation Inflation Corporate Rate High Return Bond Fund Infrastructure Fund Fund Fund Fund Linked Bond Fund Fund Yield Fund Fund Corporate Bond Fund 2004 2017 October November October December December December July December September September 2017 2013 2014 2016 2016 2006 2008 2009 2010 2013 The value of investments, and the income from them, will fluctuate. This will cause the Fund price to fall as well as rise and you may not get back the original amount you invested. 14 Source: M&G, 30 November 2017
M&G Investments - Our capabilities Investment Teams - Overview by scope Private MULTI EQUITY FIXED INCOME Equity ASSET REAL ESTATE MA Mutual FI Mutual Real Estate Fund of Equity Mutual Funds Public Debt ABS Private Debt Infracapital Funds Funds Income funds Multi- Commercial High Grade European Episode Global Bond Government Asset Mortgage Income Value Libor +1.5- Loans Core Europe Brownfield Funds Funds Bonds Illiquid Lending 1.75% Libor +4% Credit L+4-5% Investment Multi- Private Secured Absolute Buy & Grade Mezz Asset Corporate Property Leaders Recovery Gilt Funds Asian Greenfield Return Maintain Libor +2.5- Inflation Lending Income 4.5% Linked (Seg) RPI +3-4% Impact Secured Best Multi- Emerging UK Dynamic/ High Yield Investment Financing Lease UK Opportunities Asset Markets Equities Prudent Funds Grade Fund Income Residential 6-10% IRR Fixed Rate Libor +3% RPI +1-2% Restructuri Inflation Regulatory ng UK Enhanced Select Basics Income Linked Bond High Yield Capital Solutions Value Funds 8-10% IRR 8-10% IRR European Specialty Distressed Convertible Multi-Asset Japan Corporate Finance Fund Debt UK Core s Credit Bond Funds 8-10% IRR 12-15% IRR Listed UK Corporate M&G Institutional Strategies Infrastructure Bond Funds Flexible Bond Funds M&G Mutual Funds Absolute Return Some of these strategies are capacity constrained and may be unavailable at certain points in time. 15 Source: M&G Internal data by Investment teams.
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