The group took in £8.6bn in the first six months of the year compared to £2.4bn over the same period 12 months ago.
M&G has taken in a record £4.1bn of retail inflows, beating the previous high of £3.1bn for 2006. The group saw £0.9bn of inflows in 2008. M&G attributes much of the success to its fixed income range, with more than £3bn going into the corporate bond markets.
Last month, Money Marketing revealed that M&G has leapfrogged Fidelity to become the second-biggest asset manager for UK retail funds under management.
External funds now represent 37 per cent of M&G’s total funds under management.
Despite the strong inflows the group has seen its overall operating profit fall 34 per cent from £113m for the first half of 2008 to £75m this year, while revenue also fell from £235m to £195m. Total funds under management fell 6 per cent from £159bn to £149bn.
M&G says: “We believe that this success is primarily the result of a relentless focus on investment performance. Over the three years to the end of June 2009, 69 per cent of M&G retail funds under management were invested in funds which delivered top quartile performance, whilst over the same period, 71 per cent of fixed income segregated mandates performed at or above benchmark.”