Aviva Investors “has fallen short of aspirations”, claims parent group

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Insurance group Aviva has claimed its asset management arm Aviva Investors has fallen short of its aspirations by failing to expand the business externally.

The group is currently undertaking a review of its asset portfolio to make the asset management business “a more compelling external proposition”.

A spokesperson says: “We have initiated a programme to review the overall asset portfolio of the group and the appropriate mix for a low interest rate environment.

“As part of this review, we will be undertaking additional work with Aviva Investors to develop a more compelling external proposition.

“While Aviva Investors continues to serve the group well, it has fallen short of our aspirations to expand the business externally.”

In its third quarter results, the group revealed net sales for Aviva Investors had dropped to £2bn, £800m lower than the third quarter of 2011.

Net sales were affected by redemptions related to the refocusing of its distribution offices in Europe.

Aviva Investors saw its operating profits drop by 13 per cent during the first half of the year and has been targeted by the parent group for improvement.

Former chief executive Alain Dromer left the Aviva Investors earlier this year as part of a restructure, which saw it announce plans to scale back its retail business.