M&G and Insight Investments, the UK fund management arms of Prudential and HBOS, both increased profits in 2002 thanks to strong fixed income franchises.

Operating profit excluding investment income at M&G, the UK and European fund management business of Prudential, rose £2m (€2.9m) to £52m for the year, against the backdrop of tumultuous global equity markets. The figures were helped by fixed income wins totalling £1.2bn. M&G also claims that a further £400m of institutional money was won in 2002 but has not yet been received. The retail business also saw net inflows despite prolonged market uncertainty.