Aviva 2009 Annual Report Download - page 34

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Aviva plc Information on the company continued
Annual Report and Accounts 2009
Market and competition
Following the creation of Aviva Investors, we consider our
competitor peer group to include large-scale global asset
managers such as those owned by Blackrock, AXA and Allianz.
In addition, we continue to look at UK-based providers who
have significant overseas operations, including both insurance-
owned players such as Standard Life Investments and the
combined asset management businesses of Prudential plc
(primarily M&G), as well as independent, listed managers like
Schroders and Aberdeen Asset Management.
Where appropriate, we also look at other managers with a
strong presence in the UK institutional and retail markets such
as F&C Asset Management, Henderson Global Investors, Jupiter
Asset Management and Threadneedle. These managers also
have non-UK operations, particularly in Europe.
Key identified competitive factors for Aviva Investors include:
— Investment performance
— Brand
— Our Aviva group parentage
— Client service
— Scale
— Global product breadth and distribution reach
— Capabilities to provide solutions
— Risk management expertise
Products
Our product range is broad and covers most asset classes.
In Europe we have a range of SICAVs (domiciled in France,
Luxembourg, Romania and Poland). These funds cover all
key asset classes and normally have different share classes
depending on the size and type of investor. Our normal
distribution model for these funds focuses on wholesale
distributors, asset allocators and smaller institutional investors.
In the UK, we supply products to the UK retail and
wholesale markets. These funds are mostly “owned” by Aviva
UK Life with Aviva Investors as asset manager, although we
have a small number of funds registered in the Aviva Investors
name. These funds are promoted to investors via IFAs, fund
platforms, supermarkets, and discretionary asset managers.
In addition, we have a range of pooled pension funds which
are aimed at the smaller pension fund market. These funds
are normally defined benefit schemes and tend to be advised
by investment consultants.
We manufacture hedge funds in the UK, US and Poland.
These funds are generally registered offshore and are primarily
sold to the hedge funds industry, although we do also promote
single strategy funds to institutional clients, family offices and
wealth managers. The asset classes include fixed interest, multi
asset, convertibles and equities.
We also have an expanding range of specialist property
funds. These funds are targeted at specialist real estate buyers
and large institutions (mostly pension funds and local
authorities), and provide real estate solutions to a wide range
of risk appetites, ranging from secure income generating funds
to highly leveraged growth funds. These funds address the UK,
European and Asian markets.
In Australia, we have a range of unit trusts that are primarily
marketed to retail clients through the Navigator platform. This
platform enables investors to select from a range of funds,
not just those manufactured by Aviva Investors. The funds
we manufacture are primarily equity related funds with an
Australian and Asian focus.
We also have four Dublin domiciled money market funds
addressing the sterling and Euro money market segments.
These funds are sold by a specialist sales team based in London
and target corporate treasury functions.
Asset classes
Aviva Investors offers a wide range of investment solutions
across all asset classes and in all significant financial centres
worldwide. Where we do not directly manage assets, we believe
we have the skills and experience to select the right third-party
asset managers to complement our own products.
Our investment capabilities, products and services comprise:
— Alternatives – We offer a range of alternative investment
products from private equity fund of funds to hedge funds.
— Equities
— Fixed Income – Our Fixed Income teams cover the complete
product set: UK government securities, liquidity products,
corporate bonds, European and global sovereigns, index-
linked bonds, emerging markets (hard and local currency
debt) and high-yield instruments.
— Global Investment Solutions – Our new Global Investment
Solutions team constructs client solutions across markets.
— Real Estate – We offer funds specific to property assets in the
UK, Europe and Asia, in addition to a Global fund, client-
specific segregated funds and a multi-manager service.