| McLintock: Europe is seeing strong growth |
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Traditional institutional fund management no longer holds much appeal for Prudential. Earlier this year the UK insurer sold off its pension fund equity business - some £11.5 billion ($18.5 billion) of assets under management - because it was not turning enough profit.
Instead Prudential is putting its focus on higher margin retail business, although it is retaining its institutional fixed income accounts.
Michael McLintock, chief executive of M&G, Prudential's asset management division, says: "We took a view that the traditional balanced and equity pension fund mandates were essentially a very mature business. Given that on a combined basis, PPM and M&G's businesses together barely made a profit, we decided to withdraw from the business because it was taking up a lot of funds under management and obviously delivering an unsatisfactory return."