M&G Investments' net flows improved to £1.2bn in the first half, up from outflows of £2bn a year earlier, following a turnaround of its wholesale asset management franchise.
Capital generation also grew 40% on the same period of last year to £433mln, as it looks to target £2.5bn of operating capital generation by the end of 2024.
However, its pre-tax profit fell 44% to £182mln in the first half, down from £327mln in the same period of 2021.
Its losses magnified during the period to nearly £1.05bn of loss after tax, widening from a £248mln post-tax loss in the first half of last year.
M&G warned that ongoing macroeconomic uncertainty has the potential to impact its results, but said it was “cautiously optimistic” about the turnaround of its Wholesale Asset Management platform.
Its Institutional Asset Management segment has £4.4bn of committed client capital for private assets and more clients in the pipeline, it said.
It is also building M&G Wealth, recently agreeing to acquire Continuum Financial Services and launched PruFund Planet on its digital platform.
John Foley, M&G’s chief executive, said: “Improved client flows underpinned a resilient operational and financial performance despite a period of volatility when many investors reduced their exposure to markets.
“The turnaround in flows builds on the progress we made in 2021. In only 12 months, we have reversed our position from being £2bn in net client outflows, to achieving £1.2bn in net client inflows excluding Heritage.”
The firm declared a 6.2p dividend per share, up 2% as a result of its £500mln share buyback programme.