Euan Munro, chief executive officer of Avivas
£345 billion ($446 billion) asset management arm,
dismissed criticisms of his teams performance ahead of
the firms annual meeting Wednesday.
Munro, who became CEO of Aviva Investors in January 2014,
said in an interview that hes done the job he
was hired to do and that his executive team has
Munro is fending off Aviva shareholder Philip
Meadowcrofts calls to offload the British insurers
asset management business because the unit isnt
contributing enough profits. While Meadowcrofts
assessment may create some discussion at the annual meeting, Munro said he believes shareholders will
recognize the units £2.9 billion of net inflows
last year, as well as the 30 percent increase in operating
profit from 2015 to £138 million.
When I first started, we had funds leaving and a dark
regulatory background, said Munro. I am confident
that this is a pace of growth that we can sustain, because in
the first couple of years I was coping with the tide going the
Aviva was being scrutinized by the Financial Conduct
Authority when Munro joined the firm. The
regulators investigation of Aviva Investors culminated in
a £17.6 million fine for incentivizing its traders to
favor one fund over another, according to an FCA statement in
Meadowcroft, who is a member of an action group of
shareholders pressuring Aviva, didnt immediately respond
to a phone call and email seeking comment.
While Avivas £5.6 billion
acquisition of Friends Life Group in 2015 bolstered Aviva
Investors performance by increasing assets under
management, Munro said that shareholders should recognize the
divisions organic growth.
The financial numbers do make me look better than I
really am, but I would not want you to think there is not a
good organic story too, he said. It is one I think
we can carry on.
Munro said he has tasked his executive team with
diversifying the firms offerings by starting new funds in
illiquid areas such as private credit and
Before joining Aviva, Munro was global head of multi-asset
investing and fixed-income at Standard Life Investments, where
he helped start the £24.5 billion Global Absolute Return
Correction Note: This story was updated to provide the
correct details about the regulatory investigation relating to
Aviva Investors when Munro joined the firm.