The asset management arm of London-listed Prudential saw its 2015 financial results hit by a “market-wide” move away from bond funds.

M&G saw net outflows of £7 billion ($10 billion) for 2015, compared to the £7.1 billion it generated in net inflows in 2014.

Significant redemptions from bond funds drove retail net outflows to £10.9 billion over the year. In the fourth quarter, the firm suffered net retail outflows of £3.5 billion, including £2.4 billion from Europe, at the hands of “softer” investor sentiment on fixed income assets. 

“This reflected the continuation of a market-wide change in investor sentiment away from fixed income, against a backdrop of high levels of volatility and macroeconomic uncertainties, conditions that have continued into the early part of 2016,” Mike Wells, chief executive of M&G's parent company, Prudential, said in its results statement.

“Our strategy of diversification by asset class has helped attract good net inflows into several M&G multi-asset funds (totalling £2.0 billion) and into our retail property fund in 2015.”

M&G's total funds under management fell 7 per cent year-on-year to £246.1 billion, with retail funds 18 per cent lower year-on-year at £60.8 billion. Still, it generated an IFRS operating profit of £442 million, broadly in line with 2014.

Meanwhile, Eastspring Investments, M&G's Asia asset management business, delivered a strong performance in 2015, with third party net inflows of £6 billion, up from £5.4 billion in 2014.

Last month, Michael McLintock announced that he is retiring as chief executive of M&G Investments after 19 years in the role. He will be succeeded later this year by Anne Richards, previously chief investment officer and head of Europe, the Middle East and Africa at Aberdeen Asset Management. She will join the board in June.