RBC Capital downgrades M&G to ‘sector perform’

The bank said headwinds for asset management now appear more acute and persistent than it expected.

"While acknowledging positive impacts of the higher rate environment on M&G’s Life insurance earnings and capital generation, which supports upgrades to group adjusted operating profit, our cautious outlook for AM means we are below consensus for 2024E/25E," it said.

"Given M&G’s year-to-date total shareholder return of 20%, and the material de-rating of UK Life and Euro AM sector peers with each sector returning -4% YTD on average, we reduce our conviction in the shares."

At 1250 GMT, the shares were down 2.7% at 202p.