Aviva 2007 Annual Report Download - page 34
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Please find page 34 of the 2007 Aviva annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.Aviva plc
Annual Report and
Accounts 2007
Business review continued:
UK – Fund management continued
30
Business
review
Morley announcing an
asset management JV
with COFCO in October
Morley is working to form a fund
management joint venture in
China with COFCO. We plan to
use this as a platform for developing
a substantial asset management
business in China and have already
opened an office in Shanghai.
The Chinese sector has grown
rapidly in recent years with
cUS$440 billion of assets under
management and is expected
to increase dramatically over the
next decade. This joint venture
strengthens the close relationship
the Aviva group has had with
COFCO since 2003 and marks
the next step in Morley's expansion
in the Asia Pacific region.
For more information visit
www.aviva-cofco.com.cn or
www.morleyfm.com
Our primary fund management business in the UK is
Morley Fund Management. Morley also has operations
in Europe and Asia Pacific regions which are reported in
the numbers above as they fall under the management
of Morley in the UK rather than the other regional offices.
Morley
Morley is one of the UK’s largest active fund managers
and the largest fund management business in the Aviva
group, with £165 billion (2006: £166 billion) of total
funds under management.
Our aim at Morley is to build a client-centric business
that is among the best in our chosen asset classes and
markets and in line with the One Aviva strategic priority
to build a global asset management operation.
Morley’s strategy is to optimise client satisfaction
and service by offering a suite of high quality products
differentiated by performance and focused on our core
areas of fixed income, pan-European equities, property
and asset allocation. We continue to develop products
in specialist areas such as alternatives, strengthen our
infrastructure and maintain our focus on developing
the talent and skills of all our people.
Our commitment to excellence was recognised
several times in 2007. Morley was named Best Property
Manager at the Financial News Excellence in Institutional
Management Awards and also Property Manager
of the Year at the 2007 UK Pensions Awards, the G7
Fixed Income Fund also retained its title as Fixed Income
Hedge Fund of the Year at the EuroHedge Awards.
Our convertibles team was recognised with a AA / V4
rating by Standard & Poor’s for the Aviva Morley Global
Convertibles Fund. The Fund, one of the largest global
convertibles SICAVs, continued to grow strongly
throughout the year, reaching the US$1 billion mark
in September.
In July, Morley was ranked number one for the third
year running for its understanding of socially responsible
investing (SRI) and extra-financial issues in the annual
Thomson Extel SRI and Extra-Financial survey. Corporate
and social responsibility remains a key business driver
and the SRI team has done outstanding work in building
Morley’s reputation as a responsible investor.
The strength of our existing product range was
augmented throughout the year as Morley continued to
launch new products, responding to demand from our
clients. The Aviva Morley Emerging Markets Local Currency
Bond Fund, the Morley Private Equity Programme fund
of funds product and the Diversified Strategy Fund are all
testament to the innovation within the Morley group and
all have seen strong early fund flows.
Our property business performed well, despite returns
from UK commercial property falling during the year
from recent historic highs. Our Lime Property Fund
in particular experienced an increase in fund inflows,
raising £225 million in the first eight months of the
year and signing its 40th institutional client.