M&G inflows halve in 2011

Asset manager M&G has reported a 52% drop in inflows during 2011 following two successive years of “extremely high net sales”.

The drop in inflows “closer to historic levels” was expected during 2011, but had been “amplified” by the European sovereign debt crisis.

Net inflows to M&G dropped from £9.1 billion in 2010 to £4.4 billion last year. Total funds under management increased by 2% to £201 billion.

The asset manager reported a 26% rise in operating profits, under international financial reporting standards, to £357m from £284m.

The asset manager revealed that retail funds had contributed the majority of net inflows, accounting for £3.9 billion of the £4.4 billion figure. (article continues below)

It adds: “The strength of our UK distribution channels has helped to offset the difficult conditions encountered in mainland Europe, where risk-averse investors have been withdrawing money from funds.”