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View the article online at http://citywire.co.uk/wealth-manager/article/a634349

M&G busts records with £6.4 billion inflow

by Dylan Lobo on Nov 14, 2012 at 10:29

M&G busts records with £6.4 billion inflow

M&G Investments had a bumper third quarter with a massive net inflow of £6.4 billion in the third quarter.

The record figure, which represents a massive increase of 329% on the £300 million inflow in the corresponding period of the previous year, is in reflection of investors returning to the market after a period of 'extreme risk aversion'.

Total inflows year-to-date stand at £11.3 billion, more than four times higher than the £2.6 billion of asset flows in the previous year.  

Within this, retail funds sales have been robust, with £1.9 billion of inflows in the third quarter lifting the total for the year-to-date to £6.1 billion. However, as expected, retail sales in the UK slowed to £0.5 billion over the period, mainly due to the decision to slow inflows into two of its top leading corporate bond funds.

To counter this, Europe attracted strong inflows of £1.4 billion over the quarter. The Continent has accounted for more than half of net retail inflows since the start of the year at a total of £3.5 billion, reflecting the success of the growing power M&G brand in these newer markets.

Funds under management with European clients now exceed £12.2 billion, a 56% increase on funds under management of £7.8 billion this time last year.

Overall, total funds under management at M&G were 12% higher on the third quarter at £216.9 billion at the end of the third quarter.

Tidjane Thiam (pictured), chief executive at M&G parent Prudential, said in a statement to the stockmarket: ‘This is our best ever performance at the nine month stage, surpassing the historically high level of net inflows achieved in 2009.

‘M&G has benefited from its strong investment performance and broad range of attractive funds across asset classes as retail investors, particularly those in continental Europe, are starting to invest again after a period of extreme risk aversion observed in 2011.’

Over the third quarter of 2012 overall asset management inflows at Prudential, due largely to M&G, rose hugely, hitting £12.3 billion up from £3.4 billion in the third quarter of 2011.

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