09/08/2013
Aviva Investors has to further increase its profitability
In first half, operating profit generated by Aviva Investors was GBP31m, an increase of GBP17m compared with the prior year. This improvement was driven by higher revenues, reflecting positive market movements and performance fees, and lower costs as a result of the cost saving initiatives undertaken over the last year. Overall operating expenses have fallen by GBP4 million compared with the first half of 2012, with reductions in staff and recruitment expenditure. However, Aviva Investors continues to be viewed within the group as a “turnaround” business, according to the first half report released on Thursday. “Aviva Investors has underperformed from a shareholder perspective and we expect it to play a more prominent role in the group going forward. We have recently appointed Euan Munro who will play a pivotal role helping Aviva Investors, a core part of the Group, improve its profitability and contribution to Aviva,” the financial document says. In the first six months of the year, the asset management firm has seen net outflows of EUR2.333bn. Its assets have nonetheless increased by GBP8.5bn, to GBP344.7bn.
