M&G Investments' journey as a signatory of CityHive’s ACT Framework

ACT Signatory Journey: ‘This is a long-term movement, not a passing trend’

A conversation with Alex Matcham, Head of UK Wholesale Distribution at M&G, who shares the firm’s ongoing learning as a result of being an ACT Signatory and Partner, and its place in the industry evolution.

City Hive’s ACT Framework is helping investment firms understand their corporate culture and commit to transparency for investors who are increasingly requesting this information for their fund due diligence. We spoke with Alex Matcham, Head of UK Wholesale Distribution at M&G, about the firm’s journey as a Signatory and what it means for their business.

M&G was one of the founding signatories of the ACT Framework in 2022. What was the motivation behind signing up?

Alex Matcham: A key driver was recognising the changing nature of our industry and society. One of my colleagues at the time, Jasmine Miller, identified ACT as a unique partnership that went beyond traditional networks. What resonated with us was its ability to quantify corporate culture, something often overlooked despite being a fundamental part of our people-focused industry. We believe good culture translates to better client outcomes, particularly in mitigating risk. The level of industry support behind ACT also signalled that this was a long-term movement, not a passing trend.

What was the initial reporting process like? Were there any challenges?

AM: The process did come with challenges, particularly in making certain internal data more publicly available. Every company has sensitivities about sharing information externally. That said, the exercise surfaced a wealth of existing processes, timetables, and targets we had in place, which was a positive outcome. It helped us refine how we communicate our cultural initiatives both internally and externally.

ACT is an ongoing commitment rather than a one-time exercise. How does M&G continue to engage with the Framework?

AM: That’s a crucial point—there’s no ‘end point’ to cultural improvement. We reassess our progress annually and are continuously learning. The Framework encourages transparency, prompting us to reflect on areas needing improvement. City Hive has helped us take our internal efforts and communicate them externally, ensuring our clients can assess our progress.

M&G has been proactive in setting diversity targets. Can you share some key achievements?

AM: We’ve set clear diversity targets for senior leadership—by 2025, we aim for 20% ethnic diversity and 40% female representation. As of our 2023 report, we were close to 40% women but at around 12.5% for ethnic diversity, so there’s more work to do. Beyond leadership, our recruitment efforts have significantly improved representation at entry levels. For example, our apprenticeship and graduate programs consistently see near-equal gender balance, and over a third of new hires come from ethnically diverse backgrounds. These numbers have been improving year-on-year since 2018.

Some assume corporate culture is solely HR’s responsibility. How do you ensure it permeates throughout M&G?

AM: Internal communications play a big role. We have regular initiatives covering well-being, diversity, and inclusion, which are visible around the office. That said, there’s always room for improvement. Awareness of ACT, in particular, is higher within our sales team and stewardship-related roles, but we recognise the need to embed it more widely across the business.

You recently took the additional step of becoming an ACT Framework Partner. Why was that important?

AM: We see this as a long-term commitment. Real change in the industry will take a decade or more. Becoming a partner demonstrates our belief in the Framework’s value and aligns with our corporate values. Additionally, the ACT Stewardship Council, which represents over a trillion in assets, is a key network, and we want to be actively involved in shaping industry standards.

How important is industry-wide collaboration on culture and governance?

AM: It’s essential. We know that not every firm has signed up yet, but we see it as an investment in improving industry standards. While ACT may not be for everyone yet, its influence is growing, and we encourage peers to engage.

What have you learned through the ACT process?

AM: One of the biggest takeaways is that we already had strong cultural initiatives in place. The Framework helped us surface and refine them. M&G has always been a people-first organisation, and ACT complements that ethos, helping to future-proof our business.

Are clients asking about culture and ACT Signatory status?

AM: Yes, particularly from firms within the Stewardship Council. Some clients are increasingly relying on this information when assessing managers. We expect ACT participation to become a growing factor in manager selection over time.

What are M&G’s current cultural priorities?

AM: Alongside our diversity targets, we’re focusing on well-being. We have initiatives like Wellbeing Wednesdays, mental health first aiders, and financial empowerment programs. Additionally, our Life Stages policies support employees through major life transitions, including parental leave and fertility treatments. These policies make a real difference in fostering an inclusive workplace.

Final thoughts: How would you summarise ACT and the impact it is having on the industry?

AM: It’s not about getting a rating or ticking a box—it’s about industry evolution. Culture plays a crucial role in investment outcomes, and firms need to approach it as an ongoing journey. ACT provides a structured way to embed and showcase cultural progress. As scrutiny on corporate behaviour increases, those who engage now will be better positioned for the future.