Continental European net retail inflows surged 46% to a record £7.6 billion at M&G Investments last year, as the Prudential-owned fund manager's push to diversify helped drive full-year operating profits up 23% to £395 million — also a record.

"Modest" net outflows in the UK were outweighed by the strong flows from the region, which pushed the continental European proportion of M&G's retail funds under management up to 35% from 26% at the end of 2012, according to Prudential's annual results this morning.