M&G Investments, the funds arm of UK insurer Prudential, reported a dramatic increase in flows into its investment funds over the first half of the year, thanks to retail investors piling into its bond funds and a significant institutional mandate. But profits at the company still fell a third thanks to the decline in equities markets late last year.

The company reported net inflows of £8.6bn (€10bn) from external investors over the six months, compared with £2.4bn over the same period last year. Its total assets under management stood at £149bn at the end of June, of which £56bn was from external investors, rather than managed for its parent company or other associated entities.