M&G, the fund management arm of Prudential, the UK insurer, saw its operating profits rise by 64% to £136m (€200m) in the year to last December, as it benefited from a bounce in stock markets and an increase in performance-related fees from its private equity arm.

Performance-related fees totalled £26m, of which £20m was generated by PPM Ventures, the private equity arm of Prudential, on the back of profitable realisation of several investments during the year.