Aviva Unveils Strategy to build a powerful new global asset manager: Aviva Investors
28 February 2008
• Aim to build globally integrated asset management business from an existing base of £316 billion funds under management
• Significant growth potential – new model will grow asset management’s profit contribution to Aviva plc
• Aviva Investors senior executive team, led by CEO Alain Dromer, to be drawn from Aviva asset management firms worldwide and externally
• Transformed investment model will deliver enhanced capability to sell to and service clients across borders
Aviva plc, the savings, investments and insurance group, has today unveiled a strategy for combining its asset management businesses to create a single, globally integrated asset manager to be known as Aviva Investors. The new business has an initial £316 billion (US$623 billion) of funds under management and significant potential for future growth.
Aviva Investors will unlock the Group’s combined strengths in investment manufacturing and distribution. The business will comprise a differentiated product offering and strong investment performance with a large asset base.
The existing investment management model will be transformed to deliver greater specialisation and focus. A newly formed Global Investment Solutions team will manage those investment capabilities that require scale and a global outlook. This team will focus on a diverse range of products and solutions including quantitative, index, convertibles, asset allocation and structured products. In addition small, local autonomous teams will concentrate on generating high outperformance through active portfolio management. Property will be managed as a separate global entity.
The new business aims to significantly increase asset management’s contribution to Aviva plc profit over the next five years.
Aviva Group Chief Executive Andrew Moss said:
“Aviva Investors is the third pillar of Aviva’s composite model of long-term savings, general insurance and asset management. Over the past six months, Alain Dromer and his team have worked at pace to put together a strategy that builds on our existing, considerable strengths. Aviva Investors represents a new approach to asset management for Aviva and will be a global business with an exciting future. “
Aviva Investors will operate under a single brand with more than 1,300 employees in 15 countries across Europe, the UK, North America and Asia. Subject to regulatory approval, Aviva Investors will include businesses in the UK (Morley Fund Management), North America (Aviva Capital Management, MFM International, Aviva Investment Canada), France (Aviva Gestion d’Actifs), Australia (Portfolio Partners), Poland (CUIM Polska), Ireland (Hibernian Investment Managers), Spain (Aviva Gestion SGIIC (Gestora)) and Romania (CertInvest). It will have Delta Lloyd Asset Management (Netherlands) as a partner.
In terms of funds, from 1 April, the Luxembourg-domiciled Aviva Morley SICAV will be re-branded as the Aviva Investors SICAV and this will be the primary vehicle through which Aviva Investors distributes funds globally. Aviva Investors also plans to launch new funds managed in Australia, the US and Ireland.
Aviva Investors Global Chief Executive Alain Dromer said:
“Aviva Investors is all about capitalising on the strength of being part of the world’s fifth-largest insurance group. Today, we have a powerful starting point. In the future, we can broaden the range of our existing capabilities and invest to accelerate our growth.”
Aviva Investors will look to strengthen its ability to sell to and service clients across borders. The new business will be supported by dedicated distribution, operations and support services and anticipates investing further in people, technology and solution development.
Mr Dromer said:
“Our business will require our people to embrace a very different perspective: one of a single business with a global outlook and specialist expertise; one where pace, accountability and collaboration across borders will deliver superior investment solutions.
“We have a very diverse client base which we want to develop even further. Our decision to specialise and focus our investment teams satisfies the requirements of those clients who want to build portfolios themselves and those who expect us to devise new solutions for their needs.
“Our work starts now. We will manage carefully the transition to becoming Aviva Investors and, as this vision takes shape, the positive momentum will provide exciting developments for our people and outstanding service for our clients.”
Over the next few months, the Aviva Investors Executive team will transition the current businesses to one global organisation under one leadership with one name - Aviva Investors - which will be launched formally in September 2008.
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Fiona Baker, head of corporate communications +44 (0)20 7809 8617
Notes to editors:
A separate press release details the newly appointed Aviva Investors Executive team
About Aviva Investors
Aviva Investors is the global asset management business of Aviva plc, the world’s fifth-largest insurer. Aviva Investors will have an initial £316 billion ($623 billion) of assets under management and significant growth potential.
It will operate under a single brand with more than 1,300 employees in 15 countries across the UK, Europe, North America and Asia. Subject to regulatory approval, Aviva Investors will combine businesses in the UK (Morley Fund Management), North America. (Aviva Capital Management, MFM International, Aviva Investment Canada), France (Aviva Gestion d’Actifs), Australia (Portfolio Partners), Poland (CUIM Polska), Ireland (Hibernian Investment Managers), Spain (Aviva Gestion SGIIC (Gestora)) and Romania (CertInvest) and work in partnership with Delta Lloyd Asset Management in the Netherlands.
• Building a global asset management capability is one of Aviva's strategic priorities and as such Aviva Investors will be a key component in Aviva's composite model of long-term savings, general insurance and asset management.
• Aviva is the leading provider of life and pensions to Europe with substantial positions in other markets around the world, making it the world’s fifth largest insurance group based on gross worldwide premiums at 31 December 2006.
• Aviva’s principal business activities are long-term savings, fund management and general insurance, with worldwide total sales of £49.2 billion and funds under management of £364 billion at 31 December 2007.
• The Aviva media centre at www.aviva.com/media includes images, company and product information and a news release archive.
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