Aviva Investors profits sink by over 60% on lower revenues as AUM drops
Mark Versey (pictured) is the CEO of Aviva Investors.
According to Aviva Group's half-year results published today (16 August), the group's asset management arm reported its operating profit had tumbled by 64.2% to £5m, down from £14m during the same period last year.
Excluding cost reduction implementation costs, strategic investment costs and foreign exchange movements, operating profits amounted to £14m, down from £25m in 2022.
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The firm said these results were driven by lower revenue, which dropped by 12% to £167m from £190m in the first half of last year, reflecting the impact of weak investment markets on average assets under management.
Market movements drove average AUM down by 11%, with the most significant impact in real assets. At the end of June, Aviva Investors' AUM stood at £221.3bn, down from £222.7bn at the end of last year and £232bn in the first half of 2022.
Aviva Investors saw external net inflows of £190m over the period, down from £200m last year but experienced net outflows of £500m on a total basis when its internal operations, managing £184bn in assets for Aviva Group's life and non-life operations, are included.
These overall net outflows were reduced on last year's figure of £4.3bn, which also included £800m related to «strategic actions», including £700m net outflows from actions by entities that used to be part of Aviva Group and £100m due to corporate actions.
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The firm attributed the positive net flows despite the tough market conditions to strong demand for its real assets capabilities, which offset a weak market for liquid strategies such as credit in a rising
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