Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

M&G busts records with £6.4 billion inflow

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.

Across the wider group, Pru’s UK business rose 17% compared to the third quarter of 2011 from £194 million to £227 million.

Pru said it expected investment bond sales, in particular, to be impacted by the impending retail distribution review with a slowdown showing in the last stages of 2012.

It said individual annuity sales were up 25% to £166 million. Sales to customers who did not already have a pension with the Pru were up 41% to £62 million reflecting, it said, the popularity of its with-profits Income Choice Annuity product.

However corporate pensions sales fell 22% to £148 million despite the introduction in October of auto-enrolment. Pru said it was not focused on establishing new schemes but was focusing on increasing membership within existing schemes.

Onshore bonds sales were up 27% at £161 million.

‘We are in the right markets, with the right business models and continue to make good progress across our businesses and chosen markets,’ Thiam said.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play WMR: Why Russia will lose this war

WMR: Why Russia will lose this war

Author and journalist Adam Lebor believes a perfect storm is brewing when it comes to the Russian economy. .

Play WMR: Gerard Lyons warns Asia is the real risk, not Russia & Ukraine

WMR: Gerard Lyons warns Asia is the real risk, not Russia & Ukraine

Chief economic adviser to London mayor Boris Johnson outlines the geo-political risks in Asia and explains why the risk of another eurozone crisis must not be underestimated.

Play Japan's slump, the umbrella revolution and the battle for Brazil

Japan's slump, the umbrella revolution and the battle for Brazil

With the arrows of Abenomics appearing to be missing their targets and political uncertainty rife in Hong Kong and Brazil we take a look at investor sentiment in this week's Investment Pulse

Your Business: Cover Star Club

Profile: The adviser that tempted Robin Minter-Kemp on board

Profile: The adviser that tempted Robin Minter-Kemp on board

It is rare to meet an impassioned individual who is willing to bang the drum for investment advisory right now

Wealth Manager on Twitter