A weak performance by life insurer and wealth manager Prudential’s (PRU) investment manager M&G sends shares 1.8% lower to £15.21 in early trading, but the core business continues to generate enviable levels of growth.

Retail investors took £3.9 billion out of M&G during the three months to 30 September, with management blaming failing interest in fixed-income assets. Net outflows fall to £2.7 billion after institutions put more money in to the company.

This contributed to funds under management falling by £10 billion to £247.5 billion, which was also the victim of negative market movements-linked to concerns over China’s economy.

Investors should be looking at the £39.1 billion cap’s new business profit, which improved 13% to £1.7 billion compared to the same quarter a year earlier.

Web - Prudential - 10 November 2015

Asia looks set to continue being the focus for Prudential despite Mike Wells replacing Tidjane Thiam as boss in June. New business profit in Asia grew by almost a quarter (24%) to £976 million.

The region is proving popular with insurers and banks as despite concerns over China as the region has a growing middle class with money to invest and spend buying protection products.

There was also good news for the Pru in the UK. Retail sales improved 12% to £47 million, despite government’s move to halt the compulsory buying of annuities on retirement.

Issue Date: 10 Nov 2015