3. Geographical analysis of fund management

3 – Geographical analysis of fund management operating profit

	2009 £m	2008 £m
United Kingdom	66	64
Europe	28	35
North America	22	14
Asia Pacific	(1)	1
Aviva Investors	115	114
United Kingdom	(14)	(18)
Aviva Europe	3	4
Delta Lloyd	28	10
Europe	31	14
Asia Pacific	1	13
Total	133	123

Aviva Investors

Aviva Investors reported an operating profit of £115 million (2008: £114 million) for the year. The underlying drivers to the variances compared to 2008 were broadly similar across each of our four regions, including the benefit of favourable movement in foreign exchange.

The downwards trend in global equity markets experienced since mid 2008 continued until Spring 2009, and despite their subsequent partial recovery, average 2009 levels tended to be lower than their 2008 comparatives with associated pressure on management fee income. However, this was offset by positive funds flows through our external distribution channels and good investment performance in all of our key manufacturing units, resulting in an increase in the level of performance fees recognised in the year. Additionally, capital appreciation in US corporate bond markets resulted in a significant increase in management fee income in North America.

We continue to maintain our focus on cost control, while investing in our operating platform to drive future increases in third party revenue streams. For example we have made a significant investment into externalising the excellent investment performance capabilities of our French asset management company and have further developed our presence in China, the cost of which has contributed towards the reduction in profit in these regions.

Other fund management businesses

United Kingdom operating loss of £14 million (2008: £18 million loss) reflects the decline in sales, offset by operational efficiencies in our UK retail investment business and our collective investment business with Royal Bank of Scotland Group.

Delta Lloyd operating profit of £28 million (2008: £10 million) increased reflecting the higher funds under management during the year and lower expenses.

Asia Pacific, comprising our Navigator business in Australia and Singapore, contributed £1 million (2008: £13 million), as a result of lower investment returns and lower fees from reduced funds under management, and the loss of funds managed on behalf of the Australian Life business which was sold on 1 October 2009.

Total funds under management at 31 December 2009 of £379 billion (2008: £373 billion) were broadly in line with prior year.

	2009				20081
	Life and related businesses £m	General business and other £m	Total £m		Restated Total £m
Total IFRS assets included in the balance sheet	308,216	46,175	354,391		354,562
Less: Third party funds included within consolidated IFRS assets	—	(9,980)	(9,980)		(6,025)
	308,216	36,195	344,411		348,537
Third party funds under management
Unit trusts, OEICs, PEPs and ISAs			21,618		15,901
Segregated funds			48,770		52,322
			414,799		416,760
Non-managed assets			(35,388)		(44,176)
Funds under management			379,411		372,584
Managed by:
Aviva Investors			245,176		236,178
Other Aviva managers			113,786		111,532
Total funds managed by Aviva			358,962		347,710
External fund managers			20,449		24,874
Funds under management			379,411		372,584

1. Third-party and total funds under management has been adjusted as a result of a double count of £6,782 million in 2008.

Funds managed by Aviva Investors were £250 billion (31 December 2008 £236 billion). The increase in the year is primarily a result of market appreciation as some of the previous equity market losses are reversed together with capital appreciation in some fixed income markets, offset by the impact of sterling appreciating against the Euro and US dollar.