Aviva sells Australian equity business

aviva_gerth2_410Aviva Investors has sold its Australian equities business - Aviva Investors Australia (AIA) - to nabInvest, National Australia Bank's direct asset management business.

AIA specialises in the active management of Australian equities and listed property with approximately A$5.5bn (€3.7bn) of assets under management.

Alain Dromer, Aviva Investors CEO, said: “The sale is consistent with our strategic focus on growing cross border sales and our business in Asia from our Singapore regional hub.”

He added: “It is also a good outcome for Aviva Investors Australia. While our Australian equity business is highly regarded, it is a relatively small player in a competitive market, and it would be challenging for us to achieve a leading position without substantial additional investment. We determined the business would be likely to offer greater value to participants with a broader Australian distribution footprint.”

Dromer also highlighted changes in its Asia business. Craig Bingham, Asia Pacific CEO, will be leaving the business following a transition period. Erich Gerth, chief executive of global business development, has taken on the additional role of regional CEO and will relocate to Singapore.

“Our business in the Asia Pacific region has grown substantially and with the sale of Aviva Investors Australia agreed, we will focus on further building our Asian business out of Singapore.”

Aviva Investors will also continue to have an institutional sales and direct real estate presence in the Australian market.

The transaction, which is subject to regulatory approval, is expected to close in the third quarter of 2011.

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