M&G hit by loss of bond brief
UK - M&G had a net outflow of 879 million-pounds (1.3 billion euros) in its institutional business in the first quarter of 2004 - hit by a client withdrawing a segregated fixed income brief.
"In its institutional business, M&G's first quarter net fund flows were
significantly affected by a single large redemption by a segregated fixed income client," said parent company Prudential. Gross inflows amounted to 365 million pounds.
A Prudential spokeswoman declined to name the client. "Institutional fund flows are by their nature volatile and this redemption reflects a change in strategy by the client," Prudential said.
Total assets under management at the end of the first quarter were 23.65 billion pounds, from 24.2 billion pounds at the start.
The company added that M&G's private finance business would report inflows of 375 million euros in the second quarter.
Prudential added that sales of corporate pensions rose 21% to 35 million pounds. "This performance reflects continued success in winning new scheme mandates (up 167%) and in adding new members to existing schemes (up 23%)."
Overall, Prudential posted a six percent rise in first-quarter sales to 433 million pounds. "This is a very positive set of results, reflecting the healthy position in which the group ended 2003," said chief executive Jonathan Bloomer.
"The UK sales are particularly pleasing given the low level of consumer confidence in medium and long-term savings."