Optimising Asset management
Eastspring Investments

£50.3bn
Funds under management

Optimising asset management - Eastspring Investments

Eastspring Investments

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  AER CER
  2011
£m
2010
£m
Change
%
2010
£m
Change
%
Gross investment inflows (excluding MMF) 7,824 11,973 (35) 11,959 (35)
Net investment inflows (excluding MMF) 633 1,837 (66) 1,882 (66)
Money Market Funds (MMF) net outflows (512) (2,052) (75) (1,954) (74)
Funds under management 50.3bn 51.9bn (3) 51.3bn (2)
Total IFRS operating profit 80 72 11 73 10

Bar chart - Total IFRS operating profit: 2010 £72m - 2011 £80m +11%

Prudential’s asset management business in Asia manages investments for Asian third-party retail and institutional clients in addition to investments of Prudential’s Asian, UK and US life companies.

Markets remained challenging in 2011, with overall net outflows seen in the Asia (excluding Japan) onshore funds market. Equity markets struggled to gain traction driven by poor investor sentiment in the face of weak macroeconomic signals. Japan was also impacted by the natural disaster which occurred earlier in the year.

Eastspring Investments

In November 2011, Prudential announced that its Asian Fund Management operations would be rebranded Eastspring Investments. The new brand, which was officially launched in February 2012, will enable the business to establish a cohesive regional presence thereby penetrating the offshore segment more effectively. It also supports distribution to new markets beyond Asia.

Total funds under management of £50.3 billion were down 3 per cent over the same period last year. The effect of positive net flows from the Asian Life Business and third party retail and institutional clients, was offset by the combined effect of outflows in the low margin money market funds (MMF) and the negative market movements particularly in the second half of the year.

Net inflows from third parties (excluding MMF) were £633 million compared to net inflows of £1,837 million during 2010. This is attributed to lower bond fund returns and to Japan, where significant inflows from the launch of the Asia Oceania equity fund in 2010 were not repeated in 2011. Clearly the environment in Japan was not conducive to product launches in the first half of 2011. This situation was partially mitigated by net inflows from corporate and institutional clients in Korea, together with new institutional mandates.

IFRS profits of £80 million are a record and were up 11 per cent on prior year as a result of higher average funds under management and disciplined management of costs.

Logo - Eastspring Investments

Eastspring Investments

In November 2011, Prudential announced that its Asian Fund Management operations would be rebranded Eastspring Investments.

The new brand, which was officially launched in February 2012, will enable the business to establish a cohesive regional presence thereby penetrating the offshore segment more effectively. It also supports distribution to new markets beyond Asia.

www.eastspringinvestments.com

 
 

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