The persistent outflows over the year negatively impacted M&G’s operating profits, which slid from £442m to £425m year-on-year.
However, considering that Prudential’s asset management arm had already recorded £7bn in net outflows for the first six months of 2016, the redemptions over the second half were not nearly as severe.
Whereas redemptions from its retail platform over the first half of the year cut into M&G’s assets under management by 14%, the assets managed for its external clients stood 8% higher at £136.8bn by 31 December.
Taken in conjunction with the assets managed for its life business clients, AUM was £265bn by the end of the period.
And by the fourth quarter, M&G had seen a return to positive net flows for its retail business with £942m entering its funds.
M&G’s negative flows also took their toll on the group at large, which chief executive Mike Wells said was “expected.”
Prudential’s operating profit on an international financial reporting standards basis, was 2% weaker at £4.3bn, despite robust growth in the life insurer’s Asia and US divisions, which expanded by 15% and 7%, respectively.
