Overall, net outflows from its retail business was £172m, compared to net inflows in Q3 last year of £1.74bn, a drop of 110%.
Including institutional business, the company saw £288m of net outflows, saying in its announcement to the Stock Exchange this morning that this is a “a clear indicator of the increasing risk aversion of retail investors particularly across continental Europe”.
In gross terms, the company saw inflows of £6.4bn (14% up) during the latest quarter compared to £5.6bn in Q3 2010.
Overall, funds under management currently stand at £194.4bn, down 4% from £202.2bn last year.
External funds under management now make up 45% of the total, a 5% hike in 12 months. This includes the contribution from this year of £19.8bn gross (£2.6bn net).
M&G’s UK business remains strong, with gross inflows of £2.9bn (£1.1bn net) in Q3.
“This performance from our UK distribution channels has helped to offset the difficult conditions encountered in mainland Europe, where risk-averse investors have been withdrawing money from funds.”
Outside the UK, M&G is hoping to complete the registration of its Oeic funds range in Norway, Denmark and Finland during Q4.
