Investor M&G reported its profits had slumped by nearly half in the first six months of the year after it was rocked by “adverse market movements” and soaring inflation.
Pre-tax profits at the Lodon-listed investment manager hit £182m at the end of June, down from £327m in the same period last year, as assets under management fell by £21.1bn to £348.9bn.
Total capital generation also plunged to £24m, down from £86m last year as a result of increasing yields and falling equity markets.
Bosses said they were encouraged by a boost in inflows however, with net inflows hitting £1.2bn, reversing £2bn in net outflows.
“This is an encouraging set of results and provides evidence that M&G is continuing to build momentum,” said John Foley, chief executive of the firm.
“Improved client flows underpinned a resilient operational and financial performance despite a period of volatility when many investors reduced their exposure to markets.”
Foley said that the firm was now bolstering its investment in M&G Wealth positions to become a “major player in the UK wealth market”, alongside recently announcing an agreement to acquire Continuum Financial Services.
M&G is “well on track” with plans to claw back shares from investors, it said, having deployed almost £150m to date.
Shares in M&G jumped by over 2.5 per cent today despite the profits slowdown.