Aviva 2006 Annual Report Download - page 45

Overview Business review Governance Financial statements Other information
Aviva plc
Annual Report and Accounts 2006 41
Europe – Fund management
Operating profit IFRS basis Operating profit EEV basis
2006 2005 2006 2005
£m £m £m £m
France 33 26 10 8
Netherlands 37 32 33 32
Other Europe 3232
Continental
Europe 73 60 46 42
France
Aviva Gestion d’Actifs (AGA) is widely recognised in the French
market as a leading asset manager and we primarily focus on
managing funds of the Aviva group. At the end of December 2006,
96% of our managed funds were ranked in the top half for returns
over five years. Our strong performance continues to be recognised
through a number of awards. In September 2006, Mieux Vivre
Votre Argent magazine ranked AGA as the best fund manager over
the last five years. Eric Duval de la Guierce, head of AGA, was
ranked top in Citywire’s August league table of the 59 leading
French fund managers for his performance over the last three years.
Operating profit has increased to £33 million (2005: £26 million),
reflecting our well-established fund management expertise, an
inflow of funds from unit-linked sales in our life business and
strongly performing equity markets in the early and latter quarters
of 2006. We have £50 billion (2005: £46 billion) of funds under
management, mostly on behalf of group companies, including the
non-linked funds of Antarius, our bancassurance partnership with
Crédit du Nord.
Netherlands
Delta Lloyd Asset Management manages investments both for
Delta Lloyd’s own insurance operations and for third-parties
including individual and institutional customers. As well as
managing equity and fixed interest funds, our operations also
include management of a property portfolio comprising residential
premises, offices, shops, and participating interests in unlisted Dutch
property funds.
Awareness of the Delta Lloyd mutual funds has improved markedly
in the past two years following distinctive marketing campaigns.
This development has been supported by recognition of strong
investment performance that in 2006 included two Standard &
Poor’scash fund awards over three and five years.
Operating profit from our fund management business in the
Netherlands was £37 million (2005: £32 million previously reported
within non-insurance business).This improvement reflected an
increase in funds under management of 9% during 2006, which
included an increase in net inflows into institutional funds of
£913 million (2005: £573 million).Inflows from individual
customers have been lower in 2006 following the exceptional
success of Delta Lloyd’s select dividend fund in 2005.
Other Europe
Our other European fund management businesses primarily consist
of a small operation in Poland, which generated operating profits
of £3 million (2005: £2 million).
iFrance: Aviva Gestion
d’Actifs wins top
investment awards
In France, we won the prestigious Corbeille Long
Terme de M ieux Vivre Award for our leading investment
position over five years. The Corbeilles, awarded
annually by the newspaper Mieux Vivre Votre Argent,
are a leading benchmark in French asset management.
This accolade, repeating our success of 2003, along
with the La Tribune/S&P Golden Trophy award that
we won in 2004 and 2005, has reinforced Aviva’s
reputation. This was in addition to the five gold
investment awards our investment team had already
won during 2006.
UFor more information on Aviva Gestion d’Actifs please
visit www.vam.cgu.fr