M&G saw net outflows in its UK retail business in the first quarter of the year, which it attributes to moves to stem flows into Richard Woolnough’s £6bn M&G Corporate Bond and £5.5bn M&G Strategic Corporate Bond funds.
First quarter results from M&G’s owner Prudential show the business’ assets under management increased 17 per cent during the first quarter after the firm witnessed strong demand from continental Europe.
Assets under management reached a record £238.4bn at the end of March, up from the £202.9bn reported for the same period in 2012.
The asset manager’s net inflows were up 38 per cent increase to £2.4bn on the back of retail sales in continental Europe.
However, M&G says its UK retail business witnessed net outflows over the period due to the decision to stem flows into the M&G Corporate Bond and M&G Strategic Corporate Bond funds because of their size. M&G said in March it expected this to happen.
The interim results say: “The substantially higher inflows from European investors more than offset weaker sales in the UK, evidencing the benefits of M&G’s diversified business model.”