Unprecedented level of retail inflows boosts UK asset manager M&G Investments, one of the UK’s leading asset management companies, recorded extremely strong net inflows during the first quarter of the year. Despite a continued backdrop of difficult market conditions, M&G attracted gross inflows of €4.7 billion over the three months to the end of March 2009, a 32% increase on the same period in the previous year.
Total net inflows reached €3.0 billion, more than four times the level achieved in the first quarter of 2008. This was the highest quarterly net sales figure recorded by M&G this decade and reflects extremely strong fund sales.
M&G’s Retail Business had an outstandingly successful start to the year, posting gross sales of €3.4 billion, up 79% on the previous year. New flows for the quarter hit a record high of €3.0 billion, against approximately zero for the first quarter of 2008.
Bond funds dominated gross inflows, accounting for 74% of sales compared with 24% in the same period in the previous year. Despite an investor preference for bonds, retail equity funds remained in net inflow, attracting €0.2 billion compared with a small net outflow in 2008.
In the institutional market, M&G recorded gross sales of €1.2 billion for the quarter, down 27% on the previous year. Net flows were €0.3 billion, compared with €0.5 billion in 2008. The figures fail, however, to reflect strong sales activity including the win of a €4.3 billion fixed income mandate which will be included in the half-year results.
Michael McLintock, Chief Executive of M&G, said: “These outstanding results reflect M&G’s focus on investment performance and the merits of its diversification strategy. We have been able to benefit from changing investor preferences because of our considerable strength across all the principal asset classes.”
M&G’s total funds under management (“FUM”) at 31st March 2009 were €145.1bn, down by 5% on 2008 year-end and 16% on the first quarter of 2008. M&G’s external FUM were down 1% year to date at €50.2bn and down 7% on the March 2008 level.
