M&G reports rise in third quarter retail inflows

M&G has reported a 5% rise in third quarter net retail inflows compared with the same period last year, with inflows hitting £1.74 billion.

After accounting for £202m of institutional outflows, total net inflows for the period dropped to £1.5 billion, while year-to-date total net inflows stand at £6.2 billion. This represents a 44% year-on-year drop on the £11.1 billion of total net inflows recorded last year.

M&G says the slowdown in sales is largely a reflection of the strength of heavy purchases achieved in 2009.

“2009 was an outstanding year for M&G that saw heavy purchases of our top-performing bond funds from investors seeking to exploit an exceptional opportunity in fixed income markets,” says a statement from Prudential, M&G’s parent company. (article continues below)

The group’s fixed income range attracted a significant amount of the inflows achieved year-to-date, accounting for 49% of net inflows. The M&G Optimal Income Fund was the best-seller, attracting £1.2 billion of net flows.

Meanwhile net inflows into its equity range of funds rose to £2 billion, of which £800m went into the Recovery fund managed by Tom Dobell.

The statement says: “The remainder of inflows were into M&G property funds. The asset mix of inflows has fluctuated over the period with equity and property funds dominating the first two quarters before a significant switch towards bonds in the third quarter.”

M&G’s total funds under management at September 30, 2010, were £191.2 billion—up 10% on 2009 year end and 13% on the third quarter of 2009.