M&G has been hit by investors turning away from fixed income, clocking up net outflows of £5bn for the year to 30 September.
In its latest results, published today, M&G saw retail net outflows of £7.3bn, compared to net inflows of £5.3bn this time last year. These outflows have been partially offset by inflows on the institutional side of £2.3bn.
Pru group chief executive Mike Wells says: “In asset management, M&G’s retail business continued to experience net outflows in the third quarter, mainly reflecting softer consumer sentiment on fixed income assets.
“Flows in the third quarter continued to be influenced by weak investor sentiment for fixed income in addition to high levels of volatility and macroeconomic uncertainties; conditions we expect to persist into the fourth quarter.”
Total retail funds under management at the end of September £63.5bn, down from £73bn in the same period last year.
Wells says the group is focused on diversifying its assets from fixed income, with its multi-asset and property funds seeing inflows for the period.
At group level Pru posted an overall increase in UK sales of 21 per cent to £762m for the first nine months of the year. Retail sales are up 26 per cent to £613m for the same period.
The PruFund multi-asset range has seen sales rise by 84 per cent to £395m, with total assets under management up 29 per cent since the start of the year to £14.9bn.
Wells adds: “Overall, our strong performance in 2015 continues to demonstrate the successful execution of our strategy in pursuing clearly defined long-term opportunities in Asia, the US and the UK.
“We remain optimistic about the outlook across the group, particularly in Asia where the compelling long-term fundamentals of the region are unchanged.”