In its annual results statement, the company confirmed it is to “scale back distribution to retail investors” although in the UK it will “continue to offer investment products and solutions to retail investors through Aviva and our network of banks, insurers and brokers”.
This is the result of a strategic review carried out in Q4 last year that proposed “to streamline our business, concentrating on our core strengths in fixed income, real estate and multi asset solutions, and focusing sales and marketing activity on institutional markets”.
The 2011 results announced a fall in its operating profits to £88m from 2010’s figure of £97m (in the UK, Aviva Investors’ operating profit was up from £3m to £11m). This was despite net funded external sales rising to £5.6bn, up by 137%.
The rise in sales and drop in profits is blamed in part on customers lowering their risk outlook thanks to the weak economic outlook which saw a transition to lower fee-paying asset classes.
In terms of assets under management, the figure at the end of last year was £337bn, down slightly from the £340bn at the end of 2010.
