M&G sees net inflows halve as profits climb above £300m

M&G saw its net inflows halve in 2011, while operating profits jumped 26% over the year, its results revealed.

Operating profit increased to £357m in total, with £301m from asset management operations, and £56m delivered from Prudential Capital. Total funds under management at M&G climbed 2% to £201bn, while external funds under management rose 3% to £92bn. However, net inflows plunged 52% in total, from £9.1bn in 2010 to £4.4bn last year. The decline in inflows was caused primarily by a fall in retail flows of 47%. M&G’s parent company Prudential saw its total pre-tax profits jump 33% during 2011, driven by its Asian business. The insurer reported total profit before tax of £1.9bn over ...