Aviva 2006 Annual Report Download - page 53

Overview Business review Governance Financial statements Other information
Aviva plc
Annual Report and Accounts 2006 49
Rest of the w orld
Our International fund management businesses consist primarily
of Navigator, operating in Australia and Singapore, and a small
fund management operation in Canada.
In Australia, Navigator offers full-service and low-cost platforms
that give customers access to wealth-creation and post-retirement
products and we are ranked seventh in this platform market.
Navigator had an excellent year with overall new business growing
by 34% in 2006 to £1,110 million (2005: £848 million),benefiting
from ongoing improvements in the product offering and a strong
focus on customer service. In the 2006 S&P (Assirt) adviser survey,
we improved our overall ranking for the third consecutive year and
are now above the industry average for overall service levels.
During 2006, we completed a strategic investment in the financial
advisory group Infocus Wealth Management as part of our strategy
of acquiring strategic stakes in high potential distribution groups.
Professional Investment Holdings and Financial Technology Services,
in which we purchased stakes in 2005, are performing well.
The Australian financial services market is one of the fastest
growing in the world, due in part to compulsory superannuation
contributions. Wearewell placed to take advantage of this rapidly
expanding market. Recently announced changes to pension laws
and strongly favourable tax legislation areexpected to have a
positive impact on the platform and fund management industry.
In Singapore, Navigator is a fund administration platform that
offers customers cost effective access to a range of mutual funds
from different fund managers through one product wrapper.
The business continued to grow strongly during 2006 with
significantly higher sales of £261 million (2004: £90 million),
reflecting strong distribution relationships with key brokers,
an increased fund choice and an ongoing buoyant
economic environment.
Our businesses reported operating profits of £12 million
(2005: £7 million) reflecting strong product offerings and the
benefit of buoyant investment markets.
iMorley – Awards:
Morley has enjoyed a year of award-winning progress,
with expansion into Europe, innovative product
launches and strong performance for our investors.
Our property team continues to be recognised by the
industry, winning property fund manager of the year at
Property Week Awards 2006 and Property Investment
Manager of the Year at Pensions Management 2006,
and winning tw o European awards – Outstanding
Company of the Year and Investor of the Year at the
Central and Eastern European Real Estate Quality Awards.
Our sustainable and responsible investment (SRI) team
continues to be highly regarded in the market and was
the only UK-based team to be awarded a UK equities
mandate by France’s state pension reserve fund. We
were recognised as SRI provider of the year by Global
Pensions 2006, and w e retained our top ranking for our
understanding of SRI and extra-financial issues in the
Thomson Extel Survey for the fourth successive year.
We aredelighted that our hardwork, forwardthinking
approach to asset management and focus on SRI issues
continues to be recognised by our peers, clients and
industry associates.
UFor moreinformation on Morley visit
www.morleyfm.co.uk