M&G outflows hits Pru profits despite Q4 uplift

Returned to net inflows in Q4

Outflows suffered by M&G hit profits at parent arm Prudential in 2016, despite the fund management arm returning to net inflows in the fourth quarter.

Prudential reported group IFRS operating profit, based on longer-term investment returns, was 2% lower at £4.3bn for the 12 months to end of December 2016, while M&G's operating profit were also 4% lower at £425m, which the group said reflected the "earnings impact of the recent period of net fund outflows". M&G's Felton to depart after 11 years "[The decline in profits] reflects the impact on revenues of lower average assets under management during the year, following the net outflows experienced since the second quarter of 2015. "As these net outflows were primarily from the ...