Prudential Investment Managers is becoming M&G Investments

By: Prudential Investment Managers

We’re very pleased to announce that after a very successful 27-year history of operating in Southern Africa, Prudential Investment Managers will be changing our name to M&G Investments before the end of 2021.

The name change reflects our return to being majority-owned by M&G plc, the London-listed global investment manager that has been our largest shareholder since our founding. We will be working even more closely with M&G going forward to take greater advantage of their global scale and expertise, with the goal of further enhancing our clients’ investment outcomes.

Our ownership and identity changes will have no impact on the way Prudential’s unit trust funds or institutional mandates are managed. Our consistent investment process and philosophy remain the same. Equally, our local investment team and management structure remain unchanged. Our existing teams of experienced portfolio managers continue to be backed by a team of analysts focusing on specific sectors and companies. Now, however, they will benefit increasingly from M&G’s global experience.  

The small 0.13% increase in M&G’s ownership (to 50.12%) has not impacted our black empowerment rating – in fact at the end of July we received our first-ever FSC Level 1 B-BBEE rating.

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Small ownership changes

Following M&G’s unbundling from Prudential in 2019 and its separate listing on the London Stock Exchange, it made a strategic decision to expand its global investment management presence. It was therefore a logical step forward for M&G to seek closer ties with Prudential Southern Africa, to add Southern Africa to its existing centres of investment expertise based in London, Paris, Singapore and Chicago.

In July 2021 M&G plc completed its purchase of a further stake in our Southern Africa holding company, increasing its ownership from 49.99% to 50.12%. In a parallel cash-funded transaction, the Prudential Staff Investment Company (PSI) raised its shareholding from 28.01% to 28.08%. Thesele Group, Prudential’s black empowerment partner for the past 14 years, facilitated these changes by decreasing its shareholding from 22.0% to 21.8%.

Despite the small sale by Thesele, Prudential’s B-BBEE shareholding increased to 31.4%, and when the strategic M&G shareholding is excluded, 63.0% of Prudential’s South Africa resident shareholding is now owned by black people.

Enhanced global investment expertise

M&G and Prudential have been working together over the past two decades and share a similar active, valuation-based investment process and philosophy. In fact, our close collaboration, specifically in areas like global asset allocation, has already benefitted our clients and cemented our investment philosophy.

Successful investing today requires global expertise with a global perspective. Return opportunities come from myriad sources that can best be identified by teams of experts who combine their knowledge to deliver outperformance for clients. Our closer integration with M&G will enable us to give our clients greater access to global best investment ideas and solutions that have proven to be successful, including broad global investment themes and cutting-edge, technology-driven solutions.

Examples span areas as diverse as:

  • Machine Learning-driven funds that process large quantities of data much more efficiently and expediently than analysts could do on their own;
  • Different types of sustainability- and impact-focused funds;
  • International private (unlisted) equity;
  • Investment funds targeting global listed and unlisted infrastructure and credit;
  • ESG-centric, positive impact and climate-focused solutions, etc.  

Changing Prudential’s identity to M&G Investments

As we more closely align with our majority shareholder and our international M&G colleagues, it makes sense for us to adopt the M&G Investments global investment management identity.

The name change will involve:

  • Changing company names throughout the Prudential Southern Africa group, including subsidiaries in Namibia. For example, our main investment management company, Prudential Investment Managers (South Africa) (Pty) Ltd, is in the process of being renamed MandG Investment Managers (Pty) Ltd.
  • Changing the names of all our institutional investment capabilities. For example, the “Prudential Core Equity” institutional proposition will change to “M&G Core Equity”.
  • Renaming our South Africa- and Irish-domiciled unit trust funds to M&G; i.e. the “Prudential Balanced Fund” will become the “M&G Balanced Fund”.
  • Changing our website and email domains, from prudential.co.za to mandg.co.za (in South Africa) and from prudential.com.na to mandg.com.na (in Namibia).
  • Replacing Prudential’s logo featuring the face of “Lady Prudence”, with the M&G Investments logo.

We are proud to have been operating under such a historic and globally successful brand as Prudential for over 25 years in Southern Africa. As this chapter closes and a new one opens, however, we are looking forward to taking advantage of the new opportunities open to us through M&G, which is an equally respected business around the world. As always, our aim remains to deliver even better returns to investors going forward.

For further information, please see our detailed Q&A.

Visit the official COVID-19 government website to stay informed: sacoronavirus.co.za