The asset manager attributed the growth to recruiting, in-house training and the completion of its acquisition of its stake in national IFA firm Continuum.

M&G’s wealth and retail division saw net inflows rise to £0.8bn (H1 2022: £0.1bn) for the first half of the year.

The asset manager said the biggest contribution to these flows came from gross inflows of £3.8bn to PruFund, the highest for a six-month period since 2019.

The firm launched PruFund Growth, PruFund Cautious and PruFund Risk Managed on its M&G Wealth platform in May.

M&G said it expects to continue to see strong flows into PruFund via the M&G Wealth platform in the second half of the year and beyond.

During the half, M&G appointed Caroline Connellan as its new M&G Wealth CEO. She will join the asset manager from Abrdn this month.

M&G said strong net inflows from asset management and wealth offset anticipated redemptions from UK institutional clients (outflows of £1.4bn), with overall net client inflows for the six months to 30 June being £0.7bn.

Adjusted operating profit for the group rose to £390m (H1 2022: £298m).

Andrea Rossi, group CEO at M&G, said: “Against the backdrop of ongoing market volatility and uncertainty we have made progress against all three pillars of the strategy that we launched in March - maintaining our financial strength through capital discipline; mobilising the transformation programme to simplify our business and improve client outcomes; and delivering growth with positive net client inflows.

“As we look ahead, I remain confident we have the right ingredients for success that will enable us to continue to deliver attractive outcomes for our clients and shareholders. We are, however, not complacent and will continue to focus on ensuring that our balance sheet remains strong and we deliver on our purpose and strategic objectives.”

The transformation programme is expected to deliver £50m in savings to the asset manager’s 2023 cost base. It included a voluntary redundancy scheme which has now completed. The scheme has seen around 200 people choosing to leave the business in the final quarter of 2023 to first quarter of 2024.

In the first half of the year the asset manager also returned to the defined benefit and annuity markets.

Matt Britzman, equity analyst at Hargreaves Lansdown, said annuities were the star performer for M&G in the first half of this year.

He said: “Annuities were the standout, as higher rates made operations more profitable. M&G’s looking to capitalise on the more favourable conditions, back in the bulk purchase market with two deals closing after the half ended. This marks the first business it’s done in the area since closing the annuity book back in 2016 – it’s becoming a hot spot for some of the big insurers so competition is likely to heat up, but nonetheless provides another string to M&G’s bow.”