Despite this, the asset management arm of Prudential saw total AUM largely unchanged at £204bn, which the group said was partly due to its decision to reduce its stake in M&G’s South African subsidiary.
Total net inflows for the six months to 30 June were £4.9bn, with retail net investment flows increasing by 53% to £4.3bn from £2.8bn a year earlier.
Unsurprisingly, fixed income products led the surge in new business, with the Richard Woolnough’s Optimal Income Fund the sixth best-selling cross-border fund in Europe over the 12 months to the end of May.
But even equity fund sales were not shabby, with the M&G Global Dividend Fund run by Stuart Rhodes achieving the rank of tenth best-selling cross-border fund in Europe during the same period.
Institutional net new business also rose, from £0.1bn in the first half of 2011 to £0.6bn in 2012.
The firm said: “M&G continues to be number one for gross and net retail sales in the UK, a position it has now held for 14 consecutive market, and is now ranked as the largest player in the UK retail market by funds under management [according to the IMA].”
Operating profit for M&G in the first half was £199m, consistent with 2011.