Fund Management

Aviva Investors

Following a turbulent start to the year, market conditions continued to improve alongside increased risk appetite among investors. In this environment, Aviva Investors has continued to develop its business focusing on third party and cross border sales opportunities. We have accumulated assets during 2009 and have developed a strong sales pipeline across all asset classes and markets.

Full year 2009 net inflows totalled £0.9 billion, of which £2.4 billion were sourced from third party clients, which offset outflows of £1.5 billion from Aviva group companies. The overall total from group companies included strong inflows into the French and North America Life Business, although these were more than offset by significant maturities in our UK with-profit funds.

Our liquidity fund range continued to generate interest through the year attracting strong inflows in France and the UK, and our Continental Europe distribution channel continued to contribute meaningfully to sales performance through our SICAV fund range. Convertible and tactical asset allocation funds were the primary drivers of sales into this range, supported by focused sales and marketing campaign.

Our absolute focus on our clients is bringing results. Aviva Investors was ranked first quartile in the UK-focused Greenwich Quality Index, which measures both investment quality and client service. Client service achieved a significant improvement with first quartile ranking in the 2009 survey and investment quality moved up to second quartile from fourth in 2007. In addition, we continue to deliver improving investment performance globally, with particular success in Australia and France where over 90% of our funds outperformed their benchmark. Our fund management capabilities have been recognised externally. Among many independent accolades, Aviva Investors was named SRI Provider of the year at the European Pensions 2009 Awards and the Aviva Investors Listed Property Fund won the award for best Australian Listed Property Fund at the annual AFR Smart Investor Awards.