M&G recorded a £0.3bn net inflow from UK retail investors in the third quarter of 2013, reversing the outflows seen in the first six months of the year in the wake of the RDR.
According to parent company Prudential’s third quarter interim management statement, M&G’s retail inflows totalled £1.1bn between July and September, lower than the corresponding period last year.
Although UK flows turned positive, Prudential said M&G’s UK business continued to be affected by the decision to slow inflows into Richard Woolnough’s giant Corporate Bond and Strategic Corporate bond funds.
In spite of this, the company said M&G “continues to be successful” in diversifying flows to other asset classes. While Mr Woolnough’s M&G Optimal Income fund and Stuart Rhodes’ M&G Global Dividend are still the company’s top selling products, Prudential said “the third quarter saw an increased proportion of net fund sales being derived from equity funds, multi asset and property”.
“A total of eight funds [attracted] net inflows of at least £150m each in the year-to-date, highlighting the strength and breadth of our overall product portfolio,” Prudential said.
Retail inflows for the nine months to the end of September were also down slightly compared to the same period in 2012. The £5.9bn of net retail new money recorded in 2013 was once again dominated by European inflows.