Aviva Investors FM profits up 32% as AIMS range hits £9bn


Aviva Investors has delivered a 32 per cent increase in fund management operating profits, up from £105m to £139m.

The division also trebled funds under management in its Aviva Investors Multi-Strategy range of multi-asset funds from £3bn last year to £9bn, as announced in its annual results to 31 December 2016.

Revenue for the business unit increased by 12 per cent to £506m, driven by external new business flows, a boost to infrastructure and other illiquid assets primarily for Aviva, and the completed onboarding of Friends Life assets.

Value of Aviva Investors’ new business increased 81 per cent, from £16m to £29m.

Assets under management increased by 19 per cent, up from £290bn to £345bn, attributed to positive net flows, positive market returns and the internal transfer of £14bn of Friends Life assets.

At group level, Aviva’s operating profit increased from £2.69bn to £3.01bn while operating earnings per share grew 3 per cent, from 49.7p to 51.1p.

Operating expenses increased by 6 per cent to £367m, which it says reflected “continued investment in the business”.

Reflecting the “strong progress” made on its commitments of cash flow and growth, the group is increasing its total dividend per share by 12 per cent to 23.3p.

Group chief executive Mark Wilson says: “Aviva’s results are simple and clear cut: more operating profit, more capital, more cash, more dividend. And there is more to come.