Aviva Investors net outflows hit £5bn

Aviva Investors net outflows hit £5bn

Aviva Investors reported a £44bn increase in assets under management (AUM) to £289.9bn in 2015 despite net outflows of £5.1bn.

The annual results record total gross inflows of £23.2bn in the 12 month period, while gross claims/redemptions accounted for £28.3bn.

In addition the firm suffered an additional £5bn loss from negative market movements and other outflows, but benefited from £54bn of assets the Friends Life acquisition.

Article continues after advert

Its Aviva Investors Multi-Strategy (AIMS) fund range, which launched in July 2014, achieved net inflows of £1bn during the year, and now has £3bn in assets.

In parent firm Aviva’s annual results, it noted: “Acquisitions in 2015 included £22.3bn of assets managed by Friends Life Investments (FLI) at acquisition, £22.8bn of Friends Life assets transitioned to Aviva Investors, and £9bn from the transfer of our Real Estate Finance and French Real Estate businesses.”

Meanwhile overall operating profit for Aviva Investors increased to £105m, up from £79m in 2014, which it hailed as an “important milestone”.

But Mark Wilson, group chief executive officer for parent company Aviva, noted in the results: “It is still early days for the Aviva Investors business and we expect the continuation of strong flows into higher margin external mandates to underpin growth.

“We will also benefit from the transfer of £45bn of AUM into Aviva Investors as part of the integration of Friends Life.”