M&G Shares Slide Despite Improved Net Inflows in Q1 Update

M&G plc (LON: MNG) shares have declined on Thursday as investors digested the savings and investment group’s first-quarter 2026 trading update, even though headline flow figures improved year-on-year.

The stock, which had been trading in the mid-340s pence range through late August, slipped further this week, changing hands around 332p.

The FTSE 100 insurer and asset manager reported £0.6 billion of net inflows from open business for the three months to 31 March, a marked improvement on the £0.1 billion of net outflows recorded in the same period last year. Group assets under management and administration stood at £371 billion, down from £376 billion at the end of 2025, reflecting market volatility rather than client withdrawals.

Asset Management was the standout performer, with AUMA of £344 billion and net inflows of £0.7 billion, driven by strong Wholesale demand and continued support from Daiichi Life Group. However, Institutional client activity remained subdued, posting a £0.1 billion net outflow.

The Life division proved a drag on sentiment. AUMA fell 2% to £188 billion amid adverse market movements and expected outflows from legacy Traditional With-Profits business. PruFund also swung to a modest £0.1 billion net outflow after March’s volatility offset positive flows earlier in the quarter, though management said flows had since stabilised.

Chief executive Andrea Rossi struck a confident tone, pointing to the group’s first With-Profits Bulk Purchase Annuity transaction, worth £0.3 billion, and the pending launch of PruFund on third-party adviser platforms as catalysts for growth later in 2026. Investors, however, appeared more focused on near-term flow softness and legacy business run-off than management’s longer-term optimism.