ANNUAL REPORT AND FINANCIAL STATEMENTS 2011 | 11


Whilst the change in priorities arising from the strategic review result in our 2012 goals differing significantly from our 2011 priorities, we have set out below our performance against our original 2011 goals and objectives.


Client service


2011 key points • Completed the outsourcing of key operational functions without disrupting client service


• Transferred responsibility for investment trust client service and business development to our funds business


• Held a series of successful educational seminars for pension schemes trustees and a major investment conference for discretionary wealth managers


Key performance indicators Corporate Health – The Board considers a report on the Group’s Operations and IT systems, Human Resources, Audit and Risk and Compliance functions at each Board Meeting.


Investment performance


2011 key points • 87 per cent. of fixed income assets were ahead of agreed index benchmarks or targets over three years as at year end


• 64 per cent. of equity assets were ahead of agreed index benchmarks or targets over three years as at the year end


• 98 per cent. of IPD monitored portfolios ahead of benchmark over three years as at the year end


Key performance indicators


Average percentage of Fixed Income assets above index benchmark or peer group on an asset weighted basis % (3 years)


87 2011 72 2010 72 2009


Average percentage of Equity assets above index benchmark or peer group on an asset weighted basis % (3 years)


64 2011 63 2010 72 2009


Average percentage of Property assets above index benchmark or peer group on an asset weighted basis % (3 years)


98 2011 100 2010 100 2009


Grow new revenues and further diversify the client base


2011 key points • Good progress with institutional investment consultants, with 70 product buy ratings achieved by the end of the year


• Generated £7.8 billion of new third-party business (ex. strategic partner flows), with a further pipeline of £1.2 billion in institutional mandates awaiting funding


• 20 new institutional clients added during the year


Key performance indicators Gross institutional new business £bn


5.1 2011 3.9 2010 2.5 2009


Net (outflows)/inflows in third-party mutual funds £m


(170) 2011 425 2010 64 2009


Focus on higher margin and specialist areas for new business


2011 key points • Average basis points (excluding performance fees) increased from 22.6 in 2010 to 24.4 in 2011


• Key institutional products include emerging market debt, equity- linked bond funds, liability driven investments and real-estate


• In the UK retail market key focus remains multi-manager and the ‘Lifestyle’ funds


• In the wholesale segments key products included global bonds and global convertibles


Key performance indicators Average basis points earned on assets under management*


24.4 2011 22.6 2010 21.8 2009 22.9 2008 22.5 2007


*excluding performance fees


Performance fees earned £m


11.8 2011 12.9 2010 18.7 2009 7.9 2008 20.8 2007


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