At the end of last year M&G ran £201bn of assets, up from £198bn on 31 December, 2010. Its 2011 total includes £26bn of gross inflows which nets down to £4.4bn, of which its retail funds contributed a net figure of £3.9bn.
The majority of the company’s business is assets run on behalf of Prudential, with third-party assets of £89.3bn in 2010 up by 3% to £91.9 in 2011. The internal client numbers are £108.9bn (2010) and £109.1bn (2011).
Overall, M&G’s net retail investment flows were down considerably from the end of 2010 to the end of 2011, with retail business down 47% (£7.4bn to £3.9bn) and institutional business down 71% (£1.7bn to £190m).
Its underlying profits, however, rose by 22% before performance-related fees, the same amount by which its operating profits grew, to a record level of £301m.
The focus of Prudential is well and truly on its business in Asia, with group chief executive Tidjane Thiam, explaining: “Regarding our asset management activities in Asia, we announced in November 2011 that our Asian asset management business would be rebranded Eastspring Investments. This new branding will enable it to establish a more cohesive regional presence, and to market its Asian expertise in Europe and North America.”
From a Prudential perspective, he added: “The heart of our strategy remains Asia, where our positive momentum has been maintained in 2011, with total IFRS (International Financial Reporting Standards) operating profit up 30% and a cash remittance to the group of £206m. Asia is generating both growth and cash and our focus on the fast-growing markets of Southeast Asia continues to pay off.”
