Insurer Aviva has stated the “turnaround” in its asset management business, which includes Aviva Investors is “progressing with the first tangible signs of higher margin fund inflows emerging”.
In its preliminary results statement the parent company of Aviva Investors added there was now a “clear strategy” for its third party proposition, while it’s recently launched Aviva Investors Multi Strategy (AIMS) fund range had garnered £1bn of assets eight months after launch.
The results statement showed Aviva Investors saw assets under management increase 2 per cent to £245.9bn in 2014, of which £45.5bn are external.
It added: “The expected migration of Friends Life’s assets to Aviva Investors will add scale with little additional cost. This, along with more third party assets under management, should ensure a more meaningful contribution to group profits from asset management.”
The figures showed Aviva Investors generated an operating profit in 2014 of £79m, while new business was recorded at just £9m. Funds under management, however, increased £5.8bn in 2014, with strong external sales in its real estate and fixed income funds, although it added these were more than offset by gross outflows during the year, which totalled £31.9m across both internal and external business.
In the statement the chief financial officer’s report noted: “Our fund management segment, led by Aviva Investors, was largely flat, ending the year with assets under management of £246bn. The AIMS fund range has started well and we are confident in this external market proposition. The proposed Friends Life transaction provides the opportunity to add up to approximately £70bn funds under management to Aviva Investors.