Finance and Capital Management
Sources of earnings
Institutional Asset Management
Savings & Asset Management
Assets
3rd party Institutional net client flows (in £bn)
Fees
1.2
6.6
4.1
(6.5) 1
(0.8)
3rd party Institutional AuM (in £bn)
74
74
71
-64
illI
2016
2017
2018
2019 H1
Institutional Asset Mgmt. average fees (in bps)²
26
25
22
22
22
2016
2017
2018
2019 H1
1. Outflow of one particular £6.5bn low-margin Institutional mandate as referred to in Prudential plc's Full Year 2018 results; 2. Includes fees on Prudential Assurance Company internal assets managed by M&G
Key points
• Flows are less volatile than
retail due to long duration,
liability-linked mandates
•
Tenure is typically 7+ years vs.
2-3 years for retail customers
• 3rd party clients predominantly
UK-centric but ongoing
international expansion to
support growth
• Resilient fees underpinned by
.
gradual shift of product mix
towards high-value added
solutions and private assets
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