M&G PLC reported a return to net asset management inflows in the first quarter, recording £0.7bn of net inflows compared with a £0.1bn outflow in the same quarter a year earlier, according to the company update released on Thursday.
Assets under management and administration closed the quarter at £344bn, which represents a 10% increase year-over-year and was unchanged over the quarter. The company said the positive net inflows were largely attributable to external clients and its Wholesale division, while flows from Institutional clients remained muted.
Market movements during the quarter produced a net negative impact of -£0.8bn, a figure the company noted was in line with analyst expectations for the first half. M&G recorded inflows into both private and public market strategies, with the strongest investor demand reported in European equities, structured credit and impact-oriented funds.
Within the life business, M&G said assets under management and administration declined by approximately 2% during the period. The company linked that reduction to expected outflows from legacy businesses - specifically Traditional With-Profits - combined with broader market headwinds that weighed on the segment.
PruFund, M&G's smoothing fund, experienced a £0.1bn outflow in the quarter. The company reported that PruFund saw positive net flows in January and February, with March affected by market volatility that produced the overall quarterly outflow. M&G stated that PruFund flows had stabilised in April.
Looking at distribution plans, the company intends to make PruFund available on third-party adviser platforms later this year, expanding access beyond its current channels.
M&G also confirmed that its new With-Profits BPA solution is now operational, completing the first transaction at £0.3bn. The company expects this capability to support further growth in With-Profits business, particularly during the second half of 2026.
Overall, the update portrays an asset management business regaining net inflows driven by external and Wholesale client demand, a life business experiencing modest contraction tied to legacy outflows and markets, and product distribution moves intended to broaden access to key savings solutions.