M&G, the asset management company owned by Prudential, has posted an 8% fall in funds under management to £8.7bn (€14.1bn) in the first quarter of 2002, compared with the same period last year.

The firm's retail operations have been hard hit by difficult markets, with fund inflows from individual savings accounts (ISA) sales down 20% to £89m on the equivalent period last year. However, this is roughly in line with sales across the retail industry.