Aviva Investors sees profits dip amid restructure
Fund business reports £34m operating profit in the first half of 2012.
Aviva Investors has reported operating profits of £34m in the first half of 2012, lower than the £39m of profits reported in the same period last year.
The profit dip came even as Aviva Investors’ total funds under management rose by 4 per cent to £274bn at the end of the first half, compared to £263bn at the end of last year.
The group said it won investment mandates in the UK, the Middle East and the US, generating “net funded external sales” of £1.6bn in the reporting period - compared to £2.5bn last year.
Aviva is restructuring its investment business to operate in fewer countries, in a move that is seeing the London-based arm of Aviva Investors slimmed down sharply.
“A programme is underway to improve the financial performance of this business,” the results statement added.
The Aviva Investors results were announced as part of overall reporting by the giant Aviva insurance group this morning, which showed the group’s operating profits fell by 10 per cent compared to last year.