Despite UK outflows, M&G experienced a 23% rise in operating profit to £395m.
Net inflows across the board rose to £9.5bn from £9.3bn last year, excluding £7.4bn debt from one institutional client, driven by record levels of retail sales in Europe.
Positive growth in the European arm of the business was further reflected in net retail fund flows, which surged 46% to £7.6bn year on year. This brought European net retail funds under management to total £23.7bn up 64% from last year, representing 35% of total retail funds under management compared to 26% at the end of 2012.
The group was cautious that after this period of sustained net sales, it expected business “to return to less elevated levels in 2014”.
Prudential chief executive Tidjane Thiam said, "Looking ahead, we believe that the global economic outlook is improving.”
“However, investment markets are impacted by short-term volatility as the market adjusts to policy normalisation in the US. The macro-economic adjustments that we are seeing in emerging markets, partly driven by the return of robust US growth, are ultimately a net positive for these countries, the global economy and Prudential,” he added.
M&G said it has continued to pursue the diversification of its fund range. In January earlier this year, it rejigged the management of three of its retail fixed income funds.
