Proforma reconciliation of group operating profit to profit after tax – IFRS
3. Geographical analysis of fund management operating profit
| 6 months 2009 £m |
Restated 6 months 2008² £m |
full year 2008 £m |
||||
|---|---|---|---|---|---|---|
| United Kingdom | 14 | 28 | 64 | |||
| Europe | 15 | 20 | 35 | |||
| North America | 8 | 13 | 14 | |||
| Asia pacific | (1) | 1 | ||||
| Aviva Investors¹ | 36 | 61 | 114 | |||
| United Kingdom | (12) | (8) | (18) | |||
| Netherlands | 9 | 10 | 10 | |||
| Other Europe | 1 | 3 | 4 | |||
| Europe | 10 | 13 | 14 | |||
| Asia Pacific | 1 | 9 | 13 | |||
| Total | 35 | 75 | 123 | |||
1. Half year 2008 has been restated to reflect the new management structure of Aviva Investors to include France, USA and Canada. Aviva's retail investment business and the collective investment business with RBSG do not form part of Aviva Investors UK operations.
2. Following the establishment of Aviva Investors, the fund management portion of the US business, previously recognised in long-term business, has been separately identified and transferred to fund management. This has increased the half year 2008 life IFRS operating profit by £12 million.
Our worldwide fund management operating profit decreased to £35 million (six months to 30 June 2008: £75 million) on an IFRS basis.
Aviva Investors
Operating profit reduced to £36 million (six months to 30 June 2008 restated: £61 million) reflecting the significant decline in management fees seen in the period. The decline in fees can be attributed to the decrease across all major equity markets during the second half of 2008 and the continued fall in real estate capital values, resulting in a reduction in average funds under management when compared to the prior period.
Other fund management businesses
United Kingdom operating loss of £12 million comprises £1 million loss (six months to 30 June 2008: £2 million loss) from our Aviva UK retail investment business and £11 million loss (six months to 30 June 2008: £6 million loss) from our collective investment business with Royal Bank of Scotland Group due to a decline in sales.
Europe operating profit of £10 million (six months to 30 June 2008: £13 million) reflected lower investment management fees from funds under management due to volatile stock markets.
Asia Pacific, comprising our Navigator business in Australia and Singapore, contributed £1 million (six months to 30 June 2008: £9 million).
Total funds under management at 30 June 2009 decreased by 7% to £352 billion (31 December 2008: £379 billion).
| 30 June 2009 |
Restated 31 December 2008 |
|||
|---|---|---|---|---|
| Life and Related businesses £m |
General Business and other £m |
Total £m | total £m | |
| Total IFRS assets included in the balance sheet | 288,657 | 42,835 | 331,492 | 354,562 |
| Third party funds under management: Unit trusts, OEICs, PEPs and ISAs |
19,250 | 20,876 | ||
| Segregated funds | 42,878 | 48,104 | ||
| 393,620 | 423,542 | |||
| Non-managed assets | (41,720) | (44,176) | ||
| Funds under management | 351,900 | 379,336 | ||
| Managed by: Aviva Investors |
222,120 | 236,178 | ||
| Other Aviva managers | 106,580 | 118,314 | ||
| Total funds managed by Aviva | 328,700 | 354,492 | ||
| External fund managers | 23,200 | 24,874 | ||
| Funds under management | 351,900 | 379,366 | ||
Funds managed by Aviva Investors were £222 billion (31 December 2008 £236 billion). The decrease reflects the decline across all major equity markets during the second half of 2008 and in property capital values.
