Aviva Investors saw redemptions of £4.5bn in the third quarter of the year in a period of “difficult industry conditions”, cancelling out its £4bn in gross sales.
Aviva group chief executive Mark Wilson says Aviva Investors continues to make progress but although gross sales are “encouraging” redemptions remain “too high” at £4.5bn.
In its third quarter results, published today, the strong sales at Aviva Investors were helped by the AIMS flagship range of funds, which has now £1.9bn of funds under management.
The investment unit contributed only £9m to the firm’s new business, although increasing from £5m in the same period last year.
Wilson says: “We are maintaining the momentum of Aviva’s transformation with a further quarter of improved performance.
“In asset management, our flagship fund range, AIMS, continues its strong investment performance and the Target Return Fund has recorded returns of 6.6 per cent over the past 12 months. We expect this growth to continue.”
As a result of the acquisition of Friends Life, which was completed in March this year, £23bn of assets will be transferred from AXA Investment Managers in November, the firm also said.
Wilson says: “The acquisition of Friends Life is everything we expected it to be. We have now achieved £91m of savings against our target of £225m.
“At the same time our UK Life business continues to grow and our customers are responding positively to the full range of pensions freedoms we offer.”