M&G reports £7bn outflows in H1 as it warns of further revenue pressures

Difficult start to year

M&G has posted outflows of nearly £7bn for the first half of 2016 as parent firm Prudential reports its half year results.

The asset management arm of the insurer has seen outflows since the second quarter of 2015, and posted a further £7bn of net redemptions for the first six months of 2016. Gross redemptions at the business came to £16.7bn, while gross inflows only amounted to £9.7bn. A large proportion of outflows was from the group's retail business, which shed some £6.1bn of investors' money, with the remainder coming out of institutional funds. The business also reported a 10% drop in operating profit from £251m in the first half of 2015, to £225m in the first six months of 2016. As a result,...