Fund Management

Aviva Investors

Aviva Investors attracted net new business inflows of £0.7 billion in the first quarter of 2010. Net inflows from external clients were £0.4 billion. The most significant external inflows were to our UK cash and real estate products and our absolute tactical asset allocation fund via the European SICAV, reflecting improved performance and growing investor confidence in higher risk assets.

A highlight of the quarter was our acquisition of River Road Asset Management, a leading value-oriented US equity manager. The acquisition supports the expansion of our third party institutional business by combining existing fixed income expertise in North America with River Road’s equity investment capability.

Our focus on building third party business is beginning to deliver results. We won a number of significant, unfunded mandates from notable pension schemes and financial institutions in the UK, Europe and the US in the first quarter. Importantly, these sales have been in line with our strategy to deliver higher revenue generating mandates for Aviva Investors core capabilities including, fixed income, convertible bonds, real estate and real estate securities.

We continue to focus on growing external assets under management and pursuing higher margin opportunities with our target client groups.