Aviva 2001 Annual Report Download - page 18

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Hibernian reinforced its position as a leading player in the Irish
investment market. Success in attracting third-party mandates, and
the launch of a number of new funds backed by the expertise of
Morley, saw funds under management rise 10% to £4.3 billion.
Morley Singapore was awarded enhanced fund manager status by
the monetary authority of Singapore in November, which will help
achieve our goal of establishing Morley as one of the top five fund
management brands in the Asia Pacific market.
Fund administration We continue to develop our distribution and
service capability for the important and growing mass affluent market
by providing customers with a choice of fund managers within a
single product.
The Navigator retail fund administration business in Australia
continues to be highly successful. It enables customers to
build tailored investment portfolios by drawing from a wide
range of fund managers, and is supported by pioneering new
technology. New business sales increased by 20% to £930 million
(2000: £824 million).With £2.8 billion of funds under administration
at 31 December 2001, Navigator ranks second in the Australian
market based on new funds under administration.
Along with its business-leading technology, Navigator is being
adapted for introduction to the Singapore market during the first
quarter of 2002, when significant financial reforms will pave the
way for growth through the fledgling financial adviser market.
This represents an important move as CGNU broadens its
worldwide investment management capabilities.
Global strategy Despite the market downturn during 2001,
opportunities exist to build our global fund management operations
in a way that will not only support the growth of our long-term
savings business but also create value by managing third-party assets.
The longer-term prospects are good because of the growing need
for privately funded pension schemes, stable economic policies
encouraging a switch away from traditional cash deposits into
equity-linked investments, and a demand for higher-performing
assets from increasingly sophisticated investors.
We have undertaken a global operating review of our fund
management business and have concluded that there will be a
benefit to CGNU in bringing our operations closer together.
Plans are currently being developed to put in place this increased
level of co-operation.
We will be focused on those products and markets around the world
where we can be most successful.The needs of our clients will be
addressed through a clear investment philosophy and a superior
range of funds, products and service. We will retain our strong retail
focus to support local businesses while continuing to strengthen our
institutional business, using one consistent investment process across
all our funds. We remain committed to active fund management and
achieving robust and repeatable returns for our clients.
Morley’s specialist SRI team, one of only a few in this field, undertook
a number of initiatives during 2001, including the launch of a range of
pooled pension funds. These funds focus on companies that make a
direct link between sustainable development and long-term returns.
Morley launched two new retail funds for UK private investors in
2001. It is the first time Morley has created products under its own
name for the retail market. Another development was the launch of
Morley Absolute Growth Investment Company (Magic), which
incorporates a hedge fund element with the objective of delivering
high income while maintaining capital value. This was fully
subscribed and raised £226 million of new funds.
The launch of these new products adds to the comprehensive
range of investment funds offered by Morley to the institutional
and retail markets.
Morley also has particular expertise in property. It manages the
second-largest property portfolio in the UK, which is valued at
about £9 billion and covers commercial and residential markets
and property development.
Victoire Asset Management returned an excellent level of investment
results in France in 2001, with 70% of its funds ranked in the top
quartile for investment performance over three years.Victoire was
chosen by monthly financial magazine Mieux Vivre Votre Argent as best
asset management team in the insurance industry for 2001, an award
it had previously won in 1999.
In the Netherlands, where Delta Lloyd and Ohra are among the
leading fund managers, 2001 was a difficult year. We launched a new
mutual fund product for institutional investors, and our fixed income
mutual funds portfolio was also successful. Total assets under
management grew during 2001 to £29 billion. We are taking
advantage of this expertise by launching mutual funds into
Germany and Belgium.
2nd largest in UK
Morley property
portfolio
500%
increase in new
UK institutional
mandates
16 CGNU plc Annual report + accounts 2001 Operating review continued