Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

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.

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 Video special: what Scottish DFMs think of SNP election flop

Video special: what Scottish DFMs think of SNP election flop

As delegates gathered for Citywire Scotland, we asked them their take on the election.

Play Keith Skeoch: 'passive has a part to play'

Keith Skeoch: 'passive has a part to play'

In the third part our series, Skeoch outlines his vision for Standard Aberdeen.

2 Comments Play Keith Skeoch: why I believe markets will make 'substantial returns'

Keith Skeoch: why I believe markets will make 'substantial returns'

In an exclusive interview, Standard Life CEO Keith Skeoch tells us why he takes an optimistic view on markets just about everywhere.

Read More
Your Business: Cover Star Club

Profile: Rathbones' fund boss on spotting emerging talent

1 Comment Profile: Rathbones' fund boss on spotting emerging talent

A great fund manager is really easy to spot, says Mike Webb, chief executive of Rathbones Unit Trust Management

Wealth Manager on Twitter