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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: The opportunity set that attracted Brett Williams to wealth management

Profile: The opportunity set that attracted Brett Williams to wealth management

Brett Williams is best known for helping to build some of the biggest platforms in the IFA market.He made the move over to wealth management to head SEI’s UK business earlier this year in the belief that this is where the best opportunities now lie.

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