At the end of 2011 Aviva Investors announced plans to streamline the business, which was created by parent group Aviva four and a half years ago.
Uncertainty surrounding its intentions to stay in the retail market followed, as the firm said it would aim to “leverage its strengths in key asset class and prioritise its distribution effort towards the institutional market”.
In its annual results statement a year ago, the company confirmed it was to “scale back distribution to retail investors” although in the UK it said it would continue to offer investment products and solutions to retail investors through Aviva and its networks of banks, insurers and brokers.
Savings made from the implementation of the strategic review were partially offset by lower performance fees, Aviva Investors said.
Disappointing net external sales of £1.7bn also showed a substantial drop from £3.6bn in 2011.
Total funds by Aviva Investors were up 5%, however, at £274bn compared with £263bn at the end of 2011, with assets managed for external clients increasing 4% to £54bn from £52bn. The firm said the growth in funds under management was due to positive third party net flows and capital appreciation, which made up for negative internal flows.
But the firm seemed to confirm its commitment to institutional investors, stating 69% of institutional funds performed above benchmark (where a benchmark exists) and 68% ahead of their peer group.
Read about Aviva Group’s 16% share price fall and find out the fund managers who hold it…
