The group took a proactive decision last summer to slow funds into Richard Woolnough’s Corporate Bond and Strategic Corporate Bond funds, resulting in outflows during Q1.
There was an upturn in business during Q2, and this along with stronger performance in Continental Europe offset the UK losses. Total net retail flows reached £5.6bn, more than double the £2.2bn made in the first half of 2012.
Total funds under management have now reached £62.7bn, a 30% year on year increase.
The firm’s institutional business saw a net outflow of £900m as scheduled withdrawals from a low margin £7.6bn mandate begin.
Overall underlying profit rose by 16% to a half year record of £195m.
In a statement to the stock exchange, the group said: “In the UK after four consecutive calendar years and 15 consecutive quarters as the number one house for both net and gross sales, new business has slowed.”
“In asset management, all of our operations have continued to focus on delivering superior investment performance for our customers. M&G has delivered a good performance with net retail inflows of £4.8 billion driven by strong new business from Continental Europe. “
