M&G reliant on Europe as outflows from UK bite

M&G Investments is becoming increasingly reliant on fund sales in Europe as its latest figures showed a £1.1bn outflow from its UK retail funds in the first nine months of this year.

The asset management arm of insurer Prudential registered total retail net inflows of £5.3bn in the first nine months of this year.

The growth was mainly driven by the firm’s continental Europe business, which attracted £6.2bn in net new money in the period.

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The percentage of the firm’s assets held by European investors has soared in the past year, up to 41 per cent at the end of September from 34 per cent a year previously.

The success in Europe contrasts with the firm’s difficulties in the UK, where it has seen substantial outflows from its Recovery and Global Basics funds, as well as Richard Woolnough’s UK corporate bond funds, in the past year.