M&G suffers £3.4bn retail outflows as investors flee fixed income

M&G has seen £3.4bn retail net outflows in the first six months of the year and has warned profits are expected to be "dampened" for the rest of the year as investors continue to shun fixed income funds.

In its parent group Prudential's half yearly report, M&G reported a 11% increase in profits to £251m, compared to £227m for the same period last year. However, in a similar vein to some of its UK peers, the group has seen "sizeable" retail net outflows, particularly in the second quarter, and has warned it expects this trend to continue. The report said: "M&G experienced sizeable outflows in the second quarter, bringing the total net outflows for the first six months of 2015 to £3.4bn. "As these are driven by consumer sentiment moving away from fixed income funds, the trend is ex...