M&G is experiencing one of the strongest periods in its recent history. After returning to a solid growth trajectory, the asset manager has once again posted strong net inflows while reinforcing its international expansion strategy, driven in particular by the partnership reached last year with Japanese insurer Dai-ichi Life, now one of its largest shareholders and a strategic partner for expanding its business across Asia.
Funds Society recently attended the Media Forum organized by M&G Investments at its London headquarters, where the firm’s senior executives shared their views on the evolution of the business and the key trends shaping the investment industry.
Organic Growth at Double-Digit Rates
“Growth is what defines us.” With that message, Andrea Rossi, CEO of M&G plc, summarized the firm’s roadmap, which is built around sustained growth supported by what he considers a differentiated business model.
“Our business model is our competitive advantage, and our focus is on continuing to grow,” Rossi emphasized.
Rossi explained that 2025 was an exceptional year for M&G, with €9.1 billion in net inflows, a trend that continued into 2026, with positive net inflows during the first quarter.
Today, M&G Group manages €430.5 billion in assets, of which €394.5 billion is managed by M&G Investments. While the firm remains predominantly invested in listed assets (€302 billion), it has significantly expanded its private assets business in recent years, which now totals €93 billion, according to company data.
Rossi highlighted the strong performance of M&G’s European private markets business, a market now approaching €90 trillion and growing at roughly 10% annually—a pace the firm has successfully matched. At the same time, its international business—primarily Continental Europe and Asia—is expanding at approximately 6% annually, while M&G itself is growing at double-digit rates across those regions.
The CEO stressed that organic growth remains the firm’s top priority, although he left the door open to selective acquisitions.
“We want small acquisitions that we can successfully scale within our private assets platform,” he said.
Asia: M&G’s International Growth Engine
International expansion was perhaps the most recurring theme throughout the event.
For Rossi, “international expansion is key,” with Japan occupying a central role in that strategy. Dai-ichi Life’s investment in M&G has strengthened a partnership that extends well beyond the shareholder relationship. In addition to distributing M&G’s products in Japan, the two firms also collaborate in asset management. M&G also maintains a strategic partnership with Mizuho, one of Japan’s largest banks.
Rossi explained that Japan presents an exceptional opportunity for both institutional and retail investors. An aging population, increasing life expectancy and a prolonged low-interest-rate environment have created substantial demand for long-term savings and investment solutions. Against that backdrop, M&G sees significant potential to capture part of the nearly $4 trillion currently held in Japanese bank deposits.
The partnership with Dai-ichi Life is also serving as a platform for accelerating growth across the rest of Asia.
M&G already has an institutional presence in Hong Kong, South Korea, Japan and Australia, while also distributing products in Taiwan. Today, the firm’s Asset Management division oversees approximately €17 billion in assets across Asia, a figure the company expects to grow as insurers, pension funds and sovereign wealth funds throughout the region increase their allocations.
“What has defined our growth has been a truly international effort. Once you decide to expand internationally, you need a very clear strategy and an equally strong ability to execute,” added Micaela Forelli, CEO of Europe Asset Management Operations at M&G Investments.
Forelli stressed that consistently delivering strong investment performance remains the firm’s first priority, but added that success also requires efficient operating models and effective use of available regulatory frameworks.
She highlighted the development of the UCITS industry over the past decade, describing it as one of Europe’s greatest financial exports.
“UCITS funds have become a global standard,” she said.
As an example, she noted that M&G’s Luxembourg fund structures are already distributed across 27 countries, although the potential is considerably greater, given that UCITS products are now marketed in 50 markets worldwide.
International growth opportunities, however, extend beyond geographic expansion.
Joseph Pinto, CEO of Asset Management at M&G Investments, argued that the transformation of pension systems represents one of the industry’s most significant long-term structural drivers.
Across Europe, many countries are introducing reforms to encourage defined contribution pension plans, following the path pioneered by the United Kingdom. Germany is expected to be one of the next examples.
“An increasing number of countries need to strengthen their retirement savings systems, creating a tremendous opportunity for our industry,” Pinto said.
He added that Asia offers even greater long-term potential. Unlike Europe or the United States, many Asian markets remain at a relatively early stage of development, with a growing number of individual investors beginning to seek long-term savings and investment products.
From an investment perspective, Pinto argued that Europe has once again become highly attractive for international investors.
The need to finance infrastructure, defense and new industrial capacity is creating opportunities across both public and private markets.
“We don’t aspire to be everything to everyone, but we do want to become a leading investment manager in Europe,” he said.
Private Assets, Diversification and Structural Megatrends
The third major theme of the event centered on the structural shifts reshaping institutional portfolios—changes that M&G believes strongly favor its positioning.
Rossi argued that Europe continues to attract strong interest from global investors and that, within private markets, the region is currently even more attractive than the United States.
That growing appeal is reflected in rising demand from European institutions as well as Asian and North American investors for infrastructure, private credit and European real estate.
Rossi framed this evolution within several megatrends that will drive investment demand over the coming years.
The energy transition, infrastructure development, Europe’s push for greater energy independence, rising defense spending and the investments required to deploy artificial intelligence will all require enormous amounts of capital at a time when European governments are already carrying high debt burdens.
“Governments are highly indebted, which means private markets and capital markets will need to play a greater role in financing these investments. We have the opportunity to support infrastructure that enables the energy transition, and given our expertise, this represents a tremendous growth opportunity for us,” Rossi said.
In his view, investor interest will continue to grow because Europe is undergoing a fundamental transformation in how its economy is financed.
Historically, European companies have relied much more heavily on bank lending than their U.S. counterparts. However, banks are reducing certain types of lending on their balance sheets, creating expanding opportunities for private capital.
While Rossi acknowledged that Europe remains a complex market—with different regulatory frameworks and business practices across countries—he believes that complexity is no longer the obstacle it once was. Greater political stability and increasing international interest are helping drive a rebalancing of global portfolios toward the region.
Pinto confirmed that this trend is already evident in conversations with clients.
Since last year, he said, an increasing number of investors have been modestly reducing their exposure to the United States while increasing allocations to Europe and Asia.
“This doesn’t mean abandoning the United States, which remains a priority market. It means building more balanced and diversified portfolios,” he explained.
He added that diversification is taking place not only across regions but also across asset classes, with investors gradually shifting allocations from public to private markets.
“M&G is exceptionally well positioned to support that transition,” he said, citing the firm’s combination of active management expertise, innovation capabilities and access to permanent capital through the balance sheet of Prudential, the group’s parent company.
Finally, Kathryn McLeland, Chief Financial Officer of M&G plc, explained that the firm’s growth has also been supported by significant reinvestment.
After exceeding its cost-saving targets over the past three years, the company has been able to reinvest approximately €140 million into the business, allocating more than half of that amount to its asset management division, particularly toward strengthening its private assets capabilities.
By Magdalena Martínez