The report, published 6 August, showed net external fund outflows of £300m in the six months to 30 June – a significant reduction on the £1.7bn drainage recorded in H1 2014.
Aviva CFO Thomas Stoddard attributed the figures to the group’s AIMS funds range, external sales of which hit £300m.
The transfer of funds directly managed by Friends Life Investments drove Aviva Investors FUM up 6.8% to £262.6bn, compared to £245.9bn 12 months previously, though this was impacted by euro depreciation costing the firm £5.6bn in H1.
However, this was impacted by a slide in fund management operating profit, down 22% year-on-year from £41m to £32m, with Stoddard citing combined product development and hiring costs of £169m as an influential factor.
Moving forward, the group outlined its plans to add a further £24bn into Aviva Investors from its Friends Life division, on top of the £22.3bn already transferred to date. This follows on from the asset management arm’s value of new business reaching £6m in H1.
“Expenses have increased as we have invested in our distribution capabilities and strengthened the management team,” said Mark Wilson, Aviva CEO.
“Our asset management business will take time to contribute material growth in group operating profit, although positive signs, particularly related to the flagship AIMS range of funds, are emerging.”
Overall profit for Aviva totalled £1.17bn for the period, with the board announcing an interim dividend of 6.75p per share – 15% higher than the 5.85p paid for the first six months of 2014.
Aviva’s results come off the back of the firm having to pay out £150m in February stemming from control failures.
