19th May 2006 07:15
Prudential PLC19 May 2006 Embargo: 07.15 Friday 19 May 2006 PRUDENTIAL PLC PRESENTATION ON THE GROUP'S ASSET MANAGEMENT BUSINESSES Prudential plc is hosting a presentation for investors and analysts todaystarting at 08.00am (BST) covering the Group's asset management businesses: M&G,PPM America and its asset management operations in Asia. The Group's asset management businesses have shown strong growth over the pastyear: • Total net inflows in 2005 were £5.2 billion, an increase of 58 per cent on 2004 • Total external funds under management had grown to £46 billion at the end of 2005 • M&G achieved record net sales of £3.9 billion in 2005 • Net inflows in both Japan and Korea were more than £900 million in 2005 as the Group continued to develop rapidly in Asia This sales growth is underpinned by excellent investment performance: • 41 per cent of M&G's funds were in the top quartile over the last three years • 24 per cent of M&G's funds were in the top decile over the last three years • In Asia, 64 per cent of mutual funds outperformed their benchmark or were in the upper half against their peer group over three years. In addition, Asia has had award winning performance in India, Korea and Malaysia. Despite UK equity market levels remaining broadly the same between 2001 and 2005, the asset management businesses produced pre-tax operating profits in 2005 of £195 million, almost double that in 2001. This was equivalent to a CAGR of 18per cent and demonstrates the quality and sustainability of these businesses,and their ability to generate cash flow for the Group. The momentum seen in 2005 has continued into the first quarter of 2006: • M&G's net flows were up 38 per cent on the first quarter in 2005 • In Asia net flows were up almost 150 per cent on the first quarter in 2005 • In the first quarter of 2006 total asset management profits across the group were £58 million. In addition to this outstanding contribution to the Group, asset management alsoadds significant value to the Group's life businesses through its investmentexpertise, demonstrating excellent investment performance across all assetclasses. With increasing trends towards open architecture, greater product portabilityand greater transparency, Prudential's asset management businesses are wellpositioned for further profitable growth. - ENDS - Notes to Editor: 1. A presentation to analysts will take place at 8.00am (BST) at Governor's House, Laurence Pountney Hill, London, EC4R 0HH. An audio cast of the presentation will be available on the Group's website, www.prudential.co.uk . The presentations will be available at www.prudential.co.uk from 9.30am BST. 2. A media briefing on the Group's Asset Management businesses will be held at 2pm today at Governor's House. To attend please call Joanne Doyle on 020 7548 3708 Enquiries Media Investors / analystsJon Bunn 020 7548 3559 James Matthews 020 7548 3561William Baldwin-Charles 020 7548 3719 Marina Novis 020 7548 3511Joanne Doyle 020 7548 3708 About Prudential Prudential plc is a leading international financial services group, providingretail financial services and fund management in its chosen markets: the UnitedKingdom, the United States, Asia and continental Europe. Prudential has been writing life insurance in the United Kingdom for over 150years and has had the largest long-term fund in the United Kingdom for over acentury. Today, Prudential has over 16 million customers worldwide and over £234billion (as of 31 December 2005) of funds under management. In the United Kingdom Prudential is a leading life and pensions provideroffering a range of retail financial products. M&G is Prudential's UK & EuropeanFund Manager, with around £149 billion of funds under management (as of 31December 05). Jackson National Life, acquired by Prudential in 1986, is aleading provider of long-term savings and retirement products to retail andinstitutional customers throughout the United States. Egg provides banking,insurance and investment products through its internet site www.egg.com. Prudential is the leading European-based life insurer in Asia with operations in12 markets as well as funds management businesses in 9 of those 12 markets. *Prudential plc, a company incorporated and with its principal place of businessin the United Kingdom, and its affiliated companies constitute one of theworld's leading financial services groups. It provides insurance and financialservices directly and through its subsidiaries and affiliates throughout theworld. It has been in existence for over 150 years and has £234 billion inassets under management, (as at 31 December 2005). Prudential plc is notaffiliated in any manner with Prudential Financial, Inc, a company whoseprincipal place of business is in the United States of America. Forward-Looking Statements This statement may contain certain "forward-looking statements" with respect tocertain of Prudential's plans and its current goals and expectations relating toits future financial condition, performance, results, strategy and objectives.Statements containing the words "believes", "intends", "expects", "plans","seeks" and "anticipates", and words of similar meaning, are forward-looking. Bytheir nature, all forward-looking statements involve risk and uncertaintybecause they relate to future events and circumstances which are beyondPrudential's control including among other things, UK domestic and globaleconomic and business conditions, market related risks such as fluctuations ininterest rates and exchange rates, and the performance of financial marketsgenerally; the policies and actions of regulatory authorities, the impact ofcompetition, inflation, and deflation; experience in particular with regard tomortality and morbidity trends, lapse rates and policy renewal rates; thetiming, impact and other uncertainties of future acquisitions or combinationswithin relevant industries; and the impact of changes in capital, solvency oraccounting standards, and tax and other legislation and regulations in thejurisdictions in which Prudential and its affiliates operate. This may forexample result in changes to assumptions used for determining results ofoperations or re-estimations of reserves for future policy benefits. As aresult, Prudential's actual future financial condition, performance and resultsmay differ materially from the plans, goals, and expectations set forth inPrudential's forward-looking statements. Prudential undertakes no obligation toupdate the forward-looking statements contained in this statement or any otherforward-looking statements it may make. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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