M&G has reported net retail outflows of £3.9bn for the third quarter of 2015, taking year to date outflows from the division to £7.3bn.
Reporting the figures in an interim management statement, parent company Prudential said these redemptions were offset by £1.2bn in net inflows into its institutional business over the period, which left total net outflows across M&G at £2.7bn.
In contrast to the retail figures, institutional flows have improved as the year continues, with year to date net flows now standing at £2.3bn versus £600m for the same period in 2014.
M&G said it expected the headwinds for its retail business - weak sentiment on fixed income, and high levels of volatility and macroeconomic uncertainty - to persist into the fourth quarter of 2015.
Prudential added that M&G’s multi-asset and property funds had continued to see inflows over the quarter, but total retail funds under management nonetheless fell to £63.5bn as of September 30, down from £69.2bn as of June 30.
Major mandates such as Richard Woolnough’s Optimal Income fund are among those to have seen further withdrawals over the third quarter. The fund, almost £25bn in size at the turn of the year, had £18.4bn in assets at the end of the reporting period.
