M&G posted a 32% jump in net retail inflows over the second quarter, with the asset manager recording £1.92bn of net sales.
The net retail inflow increased from the £1.45bn generated over the first quarter of the year.
After a substantial year for net inflows last year, largely due to the strong sales for Richard Woolnough's Corporate Bond fund, M&G says sales have come in higher than expected over the first six months of 2010.
"We had expected inflows to return to more normal levels this year after a record 2009 for M&G, when clients invested heavily in its top-performing bond funds to exploit a near unique opportunity in fixed income markets," the group says.
"However, retail fund flows have continued to be exceptional and are now spread across a wider range of funds. In the UK market M&G has now been the top net seller of retail funds for six consecutive quarters."
M&G's operating profits for the first half climbed 63% to £122m, with the group saying sales of more profitable equity products helped contribute to the rise.
The group's total funds under management now stand at £178.5bn, up 2% on end 2009. Total external funds under management climbed 8% over the period, to £75.7bn.
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