Aviva Investors posts 'inadequate' profits as costs weigh on Munro's turnaround

The cost of launching new fund ranges and boosting distribution left Aviva Investors with flat performance in 2014, as the firm said its wider turnaround is far from completion.

In its full-year results, the firm said operating profit for Aviva Investors was £79m. While this was a 16% increase on 2013 from £68m, the firm said it was still "inadequate" relative to assets under management. AUM for the asset management business was up 2% to £246bn, with £1bn being attributed to the AIMS multi-asset strategy which was launched last July. "Our fund management segment, led by Aviva Investors, was largely flat, ending the year with assets under management of £246 billion and operating profit of £86 million, as we increased operating expenses partly in connection wit...