M&G PLC (LSE:MNG) (LSE:MNG) reported lower assets under management (AUM) than expected for the first half of 2021 as net outflows were lower than the prior year.
At the end of June, AUM stood at £370bn, up from £367.2bn at the end of December but 1.5% short of consensus forecasts, which was mostly due to Heritage, the run-off annuity business.
Net outflows were £5.3bn, which was not as bad as analysts had predicted, with net client outflows more than halved compared to the prior year, which chief executive John Foley put down to the improved investment performance of the company, with 63% of funds in the top two quartiles over a one-year timescale.
Institutional assets flows were positive at £2.2bn, slightly better than expected.
Total adjusted operating profits of £327mln were up 6% and some way ahead of market expectations.
An interim dividend of 6.1p was declared, in line with the board's policy of paying one third of prior full-year dividend, and with strong total capital generation of £869mln and Solvency II capital coverage now at 198%.
The results "show good progress on our actions to reposition the business for sustainable growth and continued strong total capital generation", said Foley, also highlighting last month's launched of PruFund Planet, "the UK's first smoothed savings proposition that offers positive societal and environmental outcomes".
The shares fell 2% to 233.1p on Tuesday morning.
Broker Shore Capital noted the shares currently trade at 8.3 times 2021 forecast earnings and offer a 9.4% dividend yield.