Fund and wealth manager M&G has reported £1.8bn of net inflows in the third quarter, a considerable improvement from the net outflows reported for 2024.

The latest inflows take the firm to £3.9bn of net inflows for the year to date.

The improvement in flows is a continuation from the turnaround in the first half of this year, when M&G reported £2.1bn in net inflows in comparison to £1.1bn of net outflows in the first half last year.

M&G reported £1.9bn of outflows from open business for the 2024 financial year, which at the time it attributed to outflows from PruFund and retail asset management due to a challenging market.

Assets under management and administration (AUMA) in the third quarter reached £365bn as at 30 September, a rise of 3% over the quarter (£354.6bn in H1 2025). Of this £176bn came from external clients.

Andrea Rossi, group CEO at M&G, said he expected growth to continue.

He said: "Our Asset Management performance was particularly pleasing as we delivered £1.5 billion of net inflows from external clients, with good client demand across asset classes and geographies.

"Despite a volatile macroeconomic environment, we are seeing growing momentum across M&G, as we continue to execute on our strategy and deliver strong long-term value to both clients and shareholders."

Bulk purchase annuities also saw strong growth, with £0.3bn of new business, with volumes expected to continue to rise in the final quarter of the year.

The fund manager said in today’s trading update that it expected to begin to generate new business flows through its deal with Dai-ichi Life before the end of the financial year.

M&G struck a long-term partnership deal with Dai-ichi Life, one of Japan’s biggest investment and insurance companies, earlier this year in a deal which it expects to add around £4.5bn to its assets under management.

The two firms, Dai-ichi Life Holdings, Inc. (Dai-ichi Life HD) and M&G described the deal as a new long-term strategic partnership across asset management and life insurance.

M&G will become Dai-ichi Life HD's preferred asset management partner in Europe. The aim is to deliver, “substantial new business flows” for M&G and Dai-ichi Life HD.

M&G says it believes the deal will boost its asset management and international growth, particularly in  European private markets. It will also open new potential sources of business flows in Japan and across Asia.

M&G will support Dai-ichi Life HD's access to public and private markets capabilities in Europe.

M&G is an international investments and wealth management firm, managing money for around 4.51m retail clients and 9,000 institution clients from 391 worldwide offices.