M&G has reported net outflows of £700m from its UK retail business for 2013 after slowing flows into some of its most popular funds.
Reporting its annual results, parent company Prudential said M&G posted record profits in 2013 but acknowledged its UK business had "slowed" following four successive years atop the UK net retail sales chart.
While Prudential said M&G remained the leading fund group by gross UK retail sales last year, the business nonetheless saw £700m in net outflows.
The group said that primarily reflected the decision to slow flows into Richard Woolnough's Corporate Bond and Strategic Corporate Bond funds - decisions which have now been reversed due to improving market conditions.
The bulk of the outflows came in the first half of the year, when the group saw a net £1.2bn leave its retail business.
Continued success in Europe, by contrast, saw record net retail fund flows of £7.6bn in the region for 2013, up 46% year-on-year.
In total, ten retail funds attracted net sales of at least £100m each, with Woolnough's Optimal Income fund and Stuart Rhodes' Global Dividend fund continuing to attract the "majority of money".
Those flows helped push M&G's underlying profits up 20% to £395m, a new record. Total funds under management rose 7% year-on-year to £244bn.
Looking ahead, the group said it is still "too early" to judge the impact of the RDR, but suggested it would be able to avoid the margin compression that may affect some of its peers.
"In the past few weeks, platforms have begun to disclose their own service pricing and any special fund fees agreed with asset managers. Those managers with strong brands and a reputation for investment performance will be expected to better withstand any such pressures on asset management fees," the gorup said.
'Failure to pay attention can result in enforcement'
200,000 LISAs opened so far
From June 2019
11 years since launch of three Chartered titles
Hired 200 extra operational staff