M&G PLC (MNG)

[monabri]

New Ticker "MNG"

https://www.londonstockexchange.com/exc ... 73268.html

[richfool]

New Ticker "MNG"

https://www.londonstockexchange.com/exc ... 73268.html

You beat me to it by about 4 minutes. I have been searching for the ticker and new M&G share info, and just found it.

M&G (MNG) is currently trading around 221p.

https://uk.advfn.com/stock-market/londo ... r/80955120

https://www.morningstar.co.uk/uk/news/A ... ondon.aspx

https://www.hl.co.uk/shares/shares-sear ... rd-gbp0.05

PRU down about 9% trading at 1370 -1380p

[barchid]

I have probably missed it but I can not see anywhere on the RNS what the dividend policy for MNG will be, anyone have any thoughts on this please ?

[PinkDalek]

I have probably missed it but I can not see anywhere on the RNS what the dividend policy for MNG will be, anyone have any thoughts on this please ?

daveh posted extracts from the Demerger Transaction Documents over here (at High Yield Portfolios (HYP) - Practical):

viewtopic.php?p=253869#p253869

[daveh]

I have probably missed it but I can not see anywhere on the RNS what the dividend policy for MNG will be, anyone have any thoughts on this please ?

daveh posted extracts from the Demerger Transaction Documents over here (at High Yield Portfolios (HYP) - Practical):

viewtopic.php?p=253869#p253869

So I did - I'd completely forgotten that - must be getting senile.
So if the 11.92p turns out to be correct that puts MNG on a yield of 5.4%, well into HYP territory and better than itsparent. Plus there is mention of a one of special of 3.5p. Maybe I should be topping it up on yield grounds. I may top it up anyway, just because it is such a small holding size at the moment - only a few hundred pounds worth.

[barchid]

Dave&Dalek
Many thanks indeed for your pointing this out to me, I knew I must have missed it. Most grateful to you both

[richfool]

Well I sold my MNG shares yesterday at 227.8p.

I wanted to reduce my exposure to UK asset managers. I was already overweight UK asset managers. (I kept my PRU shares as I wanted to maintain my exposure to the Far East).

[barchid]

Richfool
With the benefit of hind sight, what a good sale !
Now we are at about £2 and the finals due, I believe, on March 10, does anyone have a view ?
To me it looks attractive but we really need to know the dividend likely to be paid, I think the divi to be announced then had been predicted to be 11.92p by several analyses late last year but presumably the interim, which was inside the Pru, will be paid later this year. Not to be confused with the special divi paid just after the split, if my understanding of this is correct, these shares appear to be on a rather high prospective yield.
Interestingly in the research put out by Deutsche last autumn, as reported by Questor, I seem to recall it said that in the event of a 25% fall in markets M&G's capital generation would only be reduced by 8%.
We have had a fall, but if something looks too good to be true it probably is......
Does anyone have a clearer understanding of the likely dividend for a full financial year please ?

[monabri]

Well I sold my MNG shares yesterday at 227.8p.

I wanted to reduce my exposure to UK asset managers. I was already overweight UK asset managers. (I kept my PRU shares as I wanted to maintain my exposure to the Far East).

Jupiter asset managers held their divi but culled the special (and the special was the more attractive part...but never rely on specials eh?).

[barchid]

Absolutely, never rely on a special !
My query, however, was if anyone has any thoughts on the possible annual divi fot MNG as the final should be known for sure next week, 10th, but what about the interim, probably around Sep/Oct ?

[Dod101]

Many UK asset managers (the active ones) are suffering because of the move towards passive funds, and there has also been a lot of pressure on management charges. The only one I hold is Schroders Non Voting. I have not looked at M & G. The combined Pru was OK though.

Dod

[pixtel]

I bought this on Friday at sub 200p to add to those I received from the Pru split late last year.

The Final dividend is supposed to be 11.92p . (Plus one off special 3.85p)

As the 11.92p is supposed to be two thirds, that means next year's total dividend should be about 17.88p.

[barchid]

Pixtel
Thanks, I thought it could be around that figure but at £2 it is a prospective yield of 9% which intuitively I thought was just too high, hence my post.

[pixtel]

Dividends

As announced at the time of demerger an Ordinary Dividend of 11.92 pence per share will be paid on 29 May 2020. Consistent with our dividend policy the expected 2019 Ordinary Dividend is broadly two-thirds of the amount that the Board would have anticipated paying in respect of the full year 2019 as a standalone business.

The Board has agreed to pay a one-off demerger-related Special Dividend of 3.85 pence per share. This is in recognition that for the majority of the 2019 financial year, the Company was operating without incurring certain costs, e.g. debt interest costs, which it would expect to bear in future and which have been allowed for in determining the initial level of ordinary dividend. This will also be paid on 29 May 2020.

[PinkDalek]

Dividends ...

If I may, the accepted practice when providing an extract from 3rd party sites is to provide the source, such as here:

Final Results
Released 07:00 10-Mar-2020
RNS Number : 5695F

M&G plc full year 2019 results
https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/MNG/14453976.html

[daveh]

Update for the AGM can be found here:
https://www.investegate.co.uk/m--38-g-p ... 13110478O/

Highlights
- M&G plc is financially strong. Our shareholder Solvency II coverage ratio has remained comfortably above our risk appetite throughout this crisis, and stood at 168% at 31 March 2020
- Given our financial strength and the importance of dividends to investors, we will pay our dividends of £410m (comprising an ordinary dividend of 11.92 pence per share and a special demerger dividend of 3.85 pence per share) on 29 May as previously announced
- M&G's 6,000 colleagues will continue to serve our customers and manage their assets from their homes until it is safe for them to return to our offices. No colleague has been put on furlough and we have not taken any government financial assistance related to COVID-19
- Total assets under management and administration (AUMA) were £323bn as at 31 March 2020, compared with £352bn at the end of 2019. The fall largely reflects the shock to markets in March from the disruption associated with the outbreak of COVID-19
- Our Institutional Asset Management business continues to perform well through the crisis, attracting net inflows of £2.1bn during the first quarter. Similarly, in the UK, our Retail Savings franchise saw net inflows of £0.7bn. These positive movements were offset by Retail Asset Management net outflows of £5.6bn in the quarter.
- Adjusted operating profit of £134m reflected strong underlying business performance, offset by negative mark to market impacts
- Our Heritage segment - the Prudential UK life insurance and annuity book which is closed to new customers - continues to generate steady cashflow
- High quality credit book: 98% of our shareholder annuity debt portfolio is investment grade
- We continue to be sharply focused on costs, and remain committed to our target of £145m of annual shareholder cost savings by the end of 2022
- The rating agencies Moody's and Fitch have affirmed M&G's insurance financial strength ratings at 'Aa3' and 'AA-' respectively, with stable outlooks, following the assessment of coronavirus impact on UK insurers
- Further details on our financial performance for the first quarter of the year are provided below
- M&G also announces today an agreement with Royal London to acquire its digital wrap and wealth management platform for UK independent financial advisers, Ascentric

My bold.

[scottnsilky]

I thought MNG was a reasonable choice when they were spun off from Prudential a few months ago, forgot all about them until after the crash and the dividend was announced, around 11% I think, at the post Covid price, and just managed to buy them before they went ex-div. After this week's surge I'm up about 25% inc dividend.

Very satisfied!

dp

[Alaric]

I note that historically it has often been a better idea to invest in asset management company shares than to invest in their funds.

I believe they are intending to offload it, but until it happens M&G is also the (closed) book of a leading UK insurer, namely the Prudential.

[daveh]

Interims can be found here:
https://www.investegate.co.uk/m--38-g-p ... 00038446V/
and I have posted on HYP-P here:
viewtopic.php?f=15&t=24793

Paying 6p interim dividend

Highlights

- Adjusted operating profit of £309 million and IFRS profit after tax of £826 million

- Shareholder Solvency II coverage ratio of 164%, comfortably above risk appetite

- Assets under management and administration (AUMA) reduced to £339 billion, reflecting negative market movements in March

- £2.8 billion of net inflows into Institutional Asset Management and £0.8 billion of net inflows into Retail Savings, partially offsetting £7.7 billion of outflow from Retail Asset Management

- Completion of the acquisition of Ascentric scheduled for 1 September following FCA approval of change in control

- Interim dividend of £155 million equal to 6.00p per share, in line with our policy of paying one-third of the previous year's final dividend

Paid 30 September, Ex/record dates 20/21 August

[daveh]

I am quite hopeful of my purchase a few weeks ago of MNG. I swapped out a very ill judged pre-divi cancellation purchase of HSBA into MNG on the basis that they had both fallen by a similar percentage but MNG was still looking like it could support a decent dividend. Since purchase I have enjoyed a bit of capital appreciation on MNG (165 > 181p) and I am hopeful of getting my money back from the HSBA purchase that I swapped out. The dividend will help repair the damage. I don't think I am a long term holder here but I'll judge that if/when I am breaking even on capital. I have pretty much given up on (UK) income stocks after my very, very badly timed foray pre-retirement in to what I thought were quality UK income stocks. I foresee a sale of MNG and a purchase of an appropriate IT if I can find one without a huge premium or a dire track record on capital performance. For now, I'm comfortable holding MNG. Medium term I am shifting to more emphasis outside of the UK which I think is a common enough theme these days for income seekers.

RVF.

I commented on the HYP MNG post that I was thinking of selling my PRU holding and transferring it into MNG, as the PRU is now yielding less than 2% with the divi cut. The one worry about doing that is that I'd be moving from a company that is focussing on the quickly growing Asian and African markets and focusing further on the UK.