Aviva has transferred £22.3bn ($34.8bn) of funds managed directly by Friends Life Investments into its own management and has served notice to transfer £24bn ($37.5bn) of Friends Life funds managed by Axa Investment Managers, according to Mark Wilson, Aviva's group CEO, presenting the insurer's first half results.
Aviva took over Friends Life in April.
Axa IM said it expected €34bn (£24bn, $37.5bn) of the €50bn (£35bn, $54.6bn) that it manages on behalf of Friends Life will transition to Aviva Investors by the end of 2015, adding, "Given this move by Aviva, we now anticipate that, over a period of time, some of the remaining assets that we manage on behalf of Friends Life may also be removed. "
Axa IM commented that, "From the outset, Aviva made it clear that the acquisition offers the opportunity to increase Aviva Investors' AuM by recapturing previously outsourced asset management contracts." And the French firm claimed the withdrawal "will have a limited negative impact on Axa IM's underlying earnings for 2016."
Axa IM will be compensated by a one-off withdrawal fee, which will be accounted for in its net income. The Aviva move "has been anticipated for some time now and has been factored into our strategic planning," Axa IM noted. Axa IM "continues to grow as a business with more and more clients around the world entrusting us with their assets," the firm said. At the end of June 2015, Axa IM had €26.7bn (£18.7bn, $29.2bn) of net new money inflows and total AuM of €694bn (£486bn, $758bn).