New M&G chief exec shrugs off market turbulence as he rules out break-up of the UK fund manager

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Confident: New M&G boss Andrea Rossi (pictured) tried to refute talk of a business split

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A new M&G chief has ruled out a spin-off of one of Britain’s best-known fund management firms and expects growth despite turbulent markets and rising costs of living.

Industry veteran Andrea Rossi, who was named chief executive of M&G yesterday, replacing John Foley next month, has been keen to deflect talk of spinning off the £154bn asset management business from the £193bn retail and savings division.

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“There will be no parting,” he said.

But Rossi, the former head of AXA Investment Managers, is facing a volatile environment, including extreme financial market volatility and runaway inflation, in part because of the war in Ukraine.

“These are uncertain times and my job is to manage the business well regardless of the external environment and help our clients manage further investments responsibly,” he said, adding: “I think these are opportunities – that’s when you will see the winners and losers.” Clearly, with the solid foundation we have, I see this as an opportunity for us.”

M&G’s assets under management fell 6% in the first half of 2022 to £349bn, although net cash inflows from customers were £1.2bn.

But shares are down nearly 20% as worries about the pound and the stability of the UK economy intensify.

The appointment of Rossi, who will receive a base salary of £875,000 plus benefits, has been approved by British financial regulators, M&G said.

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