M&G was hit by net outflows of £1.2bn from its UK business during the first six months of 2013, according to parent company Prudential’s half year results.
This is down from the £2.8bn net inflow that the asset management house benefited from in the same period of 2012.
Overall, M&G recorded net retail inflows of £4.8bn for the first six months of 2012 after seeing strong demand from international investors.
Regarding the UK business, M&G points to RDR’s implementation as having an adverse affect on inflows and its proactive limiting of new business to two of its corporate bond funds.
The firm moved to stem flows into Richard Woolnough’s M&G Corporate Bond and M&G Strategic Corporate Bond funds owing to their size.
Over 2013’s first half, the firm had eight funds attracting net sales of at least £150m each – with the majority of new money going into the Woolnough’s M&G Optimal Income and Stuart Rhodes’ M&G Global Dividend funds.
M&G’s total retail funds under management reached £62.7bn by the end of the six-month period, a 30 per cent increase compared to 30 June 2012.