UK – M&G says it saw net institutional fund inflows of 704 million pounds (996 million euros) in the first six months of 2003.

M&G, part of insurer Prudential, posted a first-half profit of 38 million pounds, a 12% increase over the same period last year. Its funds under management rose 10%. M&G has around 13 billion euros of European pension fund assets under management.

“This reflects M&G's strengths in retail fund management, institutional fixed income, pooled life and pension funds, property and private finance, combined with a broad distribution base,” Prudential said in its first-half earnings statement.

Prudential said M&G’s decision to reposition itself is paying off. “M&G's strategic decision three years ago to exit balanced and equity institutional pension fund management and focus on fixed income and pooled pension funds has continued to bring significant benefits as the industry moves towards more specialist offerings.”

It said that net institutional fund inflows for the first six
months of the year were £704 million. Prudential’s total investment product funds under management rose 11% to 28.2 billion pounds over the end of 2002.

Chief executive Jonathan Bloomer said: “The first half of 2003 has been the harshest operating environment for life insurers in the UK and the US for a long time.” He added that the company is well placed to grow and gain market share as the industry consolidates.