UK – Prupim, the real estate investment management arm of M&G, is to change its name to M&G Real Estate at the end of June in what CEO Alex Jeffrey described as a logical step to clear up confusion in the market.
“People increasingly know we’re part of M&G, and that M&G is part of Prudential,” he said. “M&G markets the funds, so the Prupim name just confuses investors.”
The group already markets products for third-party clients – which represent approximately £5bn (€5.9bn) in assets under management – under the M&G brand.
Jeffrey played down the strategic significance of the rebranding, saying there would be no "structural change" and confirming that Prudential insurance company remained the fund manager’s largest client.
But he acknowledged the move followed increased collaboration between M&G and the £17bn real estate investment business.
"To manage real estate assets efficiently you need a broader perspective, managing across asset classes," he said.
Some Prupim vehicles, such as the long-lease secure income fund, have already adopted the cross-asset-class approach. In that case, Jeffrey said, the involvement of M&G’s credit analysis team had helped it understand what investors expected the investment to do within the context of their whole portfolio.
Fund manager Ben Jones recently told IP Real Estate that many investors had not initially approached the real estate team because they saw it as a fixed-income – rather than a property – investment.
"It helps the business to have a broad dialogue with investors across asset classes. You start talking to them about bonds and find out they’re interested in real estate – or vice versa," said Jeffrey.
