Aviva Investors’ operating profit has more than doubled, according to the group’s half year results, as profits soared to £19m.
The year prior, operating profit for the company during the same period was just £9m, signalling 7% revenue growth driven by high origination fees on real assets, it said.
Aviva Investors also reported a drop in controllable costs to £168m, compared to £171m in the first half of 2020, resulting in an improvement to income cost ratio.
Net flows soared to £829m during the six months, compared to £574m in the first half of 2020.
Aviva Investors’ external asset net flows fell from £1.3bn in the first half of 2020 to £1.1bn in 2021, but remain positive.
Assets under management fell to £260bn, down from the final year 2020 figure of £262.bn, though it increased from the interim figure in 2020 at £249bn.
The company reports business pipeline from third-parties also remains strong, while the wider group says its focus is on its “strongest and most strategically advanced businesses in the UK, Ireland and Canada including Aviva Investors,” according to group chief executive Amanda Blanc (pictured).
The Aviva group lifted its interim dividend to 7.3p, up 5%, and revealed it would return a minimum of £4bn to investors in the next 12 months, following an initial share buyback programme aiming for at least £750m.
Yesterday, Aviva Investors announced it will close its Multi-Strategy Target Income fund, run by Peter Fitzgerald and Ahmed Behdenna, following an intense period of redemptions.
Aviva shares are up at 423p, an increase of 4%.
