The outflows from M&G’s UK retail business accelerated in 2014 as the firm became more reliant on inflows from overseas.
The asset management arm of Prudential suffered a net outflow of £1.7bn from its UK retail business in 2014, compared to a £0.7bn outflow in 2013.
However, increased fund sales from overseas, particularly with a record net inflow of £8.1bn, continental Europe, meant the firm still saw a £6.7bn net inflow across its retail business, which now has £74.3bn in assets under management (AUM).
The net inflow in 2014 was 9 per cent lower than the £7.3bn pulled in by M&G’s retail business in 2013.
The growing importance of international clients on M&G’s fund sales has meant that they now account for 44 per cent of all AUM, up from 16 per cent five yeas ago.
The firm highlighted that seven of its retail funds, across all major asset classes of equities, bonds and property, generated net inflows of at least £250m in 2014, while Lipper named Richard Woolnough’s M&G Optimal Income as the top-selling cross-border fund in Europe.
But the firm has continued to suffer outflows from its M&G Recovery and M&G Global Basics funds, while Mr Woolnough’s corporate bond funds also saw net outflows on the year.
