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M&G outflows slow as profit jumps

M&G outflows slow as profit jumps

Prudential has reported a stabilisation in M&G’s UK outflows, while the business’s profit has continued to climb.

UK investors pulled a net £516 million from M&G in the first half of the year, an improvement on the net £1.2 billion outflow experienced in the same period in 2013.

However, European buyers more than offset this decline with a net inflow of £4.2 billion, albeit down from £5.6 billion in the first half of last year.

In total this equated to a net retail fund inflow of £3.8 billion during the six months, taking M&G’s retail funds under management to £71.9 billion, 15% higher than a year ago.

Including institutional money, which contributed first-half net inflows of £427 million, that means M&G’s external funds under management have hit a record £132.8 billion.

From these assets M&G also delivered an 11% increase in its operating profit to £227 million and remitted £135 million in cash to Prudential, 24% more than it did for the same period last year.

M&G noted that the growth in its funds under management had helped it absorb a larger cost base, the result of investment in headcount and operational infrastructure, with the division’s cost/income ratio unchanged from the same point of 2013 at 54%.

Prudential itself, managed by Tidjane Thiam (pictured), recorded a 17% rise in its first-half profit to £1.52 billion and also hiked its dividend by 15% to 11.19 pence.

In early trading Prudential’s share price jumped by 2.7% to £13.75.

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Profile: Kevin Doran's formula for success at AJ Bell

Profile: Kevin Doran's formula for success at AJ Bell

From a degree in theoretical physics to teaching and becoming one of the youngest chief investment officers in the UK, Kevin Doran has certainly had an interesting career.

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