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M&G retail assets up 24% as UK inflows return

The amount of money managed by M&G Investments’ retail business is approaching £65bn as net inflows from UK retail investors returned during the third quarter.

M&G’s retail funds under management reached £64.5bn as of 30 September, which is a 24 per cent increase on the same period in 2012.

UK net retail flows continue to be hampered by the firm’s move to stem inflows into Richard Woolnough’s M&G Corporate Bond and M&G Strategic Corporate Bond funds because of their size. Despite this, the firm saw net UK retail inflows of £300m in Q3.

Over the first half of 2013, M&G was hit by net outflows of £1.2bn from its UK business.

M&G’s European businesses continue to be the main engine of growth within the retail space. Total net retail inflows for the quarter were £1.1bn, although this is down from 39 per cent from the £1.9bn reported a year earlier.

European clients account for £22.1bn of total funds under management. This is more than one-third of its retail assets and up from just £12.3bn in the same period of 2012.

M&G adds that Woolnough’s M&G Optimal Income and Stuart Rhodes’s M&G Global Dividend remain its best-selling funds.

Skerritts head of investment Andrew Merricks says: “We have been in Richard Woolnough’s funds in the past but we have moved out of those in our models because it doesn’t matter who it is, if the fund is a bit too big then it causes issues and there are always alternatives.”

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