M&G inflows down sharply but profits rise

M&G, the asset management arm of insurer Prudential, saw profits rise 39% in the first half of 2011 despite a sharp decline in inflows.

The group reported profits had jumped 39% to £199m, from £143m the previous year. However, net inflows at M&G fell 37% to £2.9bn, down from £4.7bn. Overall inflows across Prudential and M&G were down 25% to £3.3bn, with operating profit up 34% to £259m. The group, which has been the number one seller to retail investors for the last 10 quarters, said sales had slowed as expected. It said: "After two years of very high net sales at M&G, as expected, net fund flows have slowed as we had previously indicated."