Andrea Rossi, chief executive of FTSE 100 investment firm M&G, has voiced cautious optimism about the potential for growth within the UK economy despite ongoing economic challenges and political uncertainty. Visiting Pragmatic Semiconductor, a Durham-based company developing innovative microchips, Rossi highlighted his firm’s commitment to backing British technology and entrepreneurship with significant investment.
M&G’s Catalyst fund has invested over £47 million in Pragmatic Semiconductor, a Cambridge-founded firm known for producing ultra-thin, flexible computer chips with diverse applications ranging from counterfeit medicine detection to smart wound dressings. Among its experimental projects is a chip designed to monitor body odor, which alerts users via smartphone when they may need to reapply deodorant. Pragmatic, established in 2010, raised more than £180 million in capital three years ago, exemplifying the dynamic tech innovation present within the UK.
Rossi emphasized the abundant capital and talent available in the UK, noting that despite having more unicorn startups than Germany, France, and Sweden combined, the country’s growth is hindered by political instability and a perceived decline in ambition. He pointed to the widespread adoption of remote working post-pandemic as a factor contributing to a reduced work ethic and diminished economic dynamism.
“There is £2 trillion sitting in UK cash deposits earning minimal returns when it could be better deployed to support savers and the economy,” Rossi said, calling for measures that encourage more investment in domestic businesses. He expressed concern about the increasing trend of UK companies being acquired by foreign buyers and advocated for incentives similar to those found in France and Italy, where both individuals and institutions are encouraged to invest in their home markets. Rossi criticized the UK's stamp duty on shares as a deterrent to investment.
Since taking the helm at M&G in 2019, Rossi has focused on clarifying the company’s purpose and strengthening its financial position. Under his leadership, M&G has generated total returns exceeding 180% for investors, realized £250 million in cost savings, and reported record operating profits in the first half of the current fiscal year. The firm has also launched new branding initiatives aimed at connecting with savers and highlighting its £100 billion investments in innovative businesses.
A core part of M&G’s strategy involves revitalizing PruFund, a longstanding life assurance fund with £73 billion in assets, which Rossi describes as an underutilized asset with potential to attract a new generation of investors. He plans campaigns to increase individual accessibility to such investment products.
Looking ahead to UK government policy, Rossi called for consistent, growth-oriented measures that avoid excessive taxation and foster stability, which he views as essential for both corporate and national economic progress. He critiqued the frequent changes in political leadership as counterproductive and stressed the need for long-term governance to support sustainable development.
Rossi’s remarks underscore a strategic effort within M&G to leverage substantial capital and technological innovation to drive growth in the UK economy amid a backdrop of economic skepticism and political flux.