M&G UK outflows stabilise to £516m in H1

M&G Investments has seen outflows in its UK business steady to £516m in the first half of 2014 while European and institutional inflows have helped to boost profits by 11 per cent.

Results released today by M&G’s parent company Prudential point to signs of “stabilisation” in its UK business in the first six months to June after posting net outflows of £516m compared to £1.2bn in the same period in 2013.

Elsewhere net flows of £4.2bn in M&G’s European business proved the “largest contribution” to M&G’s overall net retail inflows of £3.8bn.

Despite posting stronger inflows of £5.6bn in 2013, M&G says its Continental Europe business has jumped 32 per cent in the past 12 months to reach £27.9bn and now represents 39 per cent of total retail funds under management, up from 34 per cent a year previous.

Total retail funds under management at M&G have consequently risen 15 per cent to reach £71.9bn compared to the first six months of 2013.

Institutional business also posted net inflows totalling £427m in the first half, pushing overall external funds under management at M&G to a record high of £132.8bn.

The boost to institutional and European sales also saw operating profits rise 11 per cent to £227m in the first half, £135m of which was remitted to Prudential in cash, marking a 24 per cent increase from the first six months of last year.