ANNUAL REPORT AND FINANCIAL STATEMENTS 2011 | 57
2. Net revenue
2011 £m
Base management fees
Performance-related management fees Total investment management fees
Other income Total revenue
Renewal commission on open-ended investment products Other selling expenses
Fee and commission expenses Net revenue
Other income in 2011 includes £1.4m of compensation in respect of the loss of strategic partner assets. 3. Net gains and investment income on unit-linked assets
Interest income on financial instruments attributable to policyholders Dividend income
Movement in fair values of unit-linked assets 29 Note 18(a)(i)(1) gives further background to the unit-linked assets held by the Group.
4. Expenses (a) Total operating expenses Total operating expenses, including exceptional costs, can be summarised into the following categories:
2011 £m
Employee and member benefits and related expenses* Premises expenses
Communication and information technology expenses Third-party administration expenses Promotional and client servicing expenses Depreciation and amortisation expenses Other expenses
Total operating expenses
149.4 12.6 16.6 8.5 7.1
49.6 23.1
266.9 * This includes £7.4m (2010: £5.6m) of employment-related expenses, which are not included in the employee benefit expense table in note 5.
(b) Operating expenses Operating expenses include the following:
Depreciation of owned tangible property, plant and equipment Amortisation of software and licences Auditor’s remuneration
Operating lease rentals – land and buildings (head leases) Operating lease rentals – vehicles Operating lease rentals – other*
Rentals receivable – operating leases (sub-leases) Loss on disposal of property, plant and equipment Realised exchange gains on forward currency contracts Other foreign exchange losses
* Stated net of amounts receivable from brokers under Commission Sharing Arrangements.
Sub-lease rentals of £3.9m (2010: £4.1m) were received during the year, of which £3.7m (2010: £3.9m) relates to guaranteed payments and £0.2m (2010: £0.2m) relates to contingent payments. All amounts included within operating lease and sub-lease rental payments represent minimum lease payments.
Notes 12
13 4(c)
2011 £m
3.2 0.6 1.3
10.7 0.4 2.3
(3.9) 0.3 – –
2010 £m
2.7 0.7 1.2
11.8 0.3 4.2
(4.1) 0.1
(0.9) 1.6
2010 £m
125.0 9.3
14.4 6.6 6.4
54.1 31.5
247.3
Notes 7
2011 £m
7.2 7.3
(0.8) 13.7
2010 £m
7.5
10.0 56.8
74.3
267.2 11.8
279.0 4.2
283.2 (8.8)
(7.4) (16.2) 267.0
2010 £m
245.3 12.9
258.2 1.6
259.8 (10.1)
(6.5) (16.6) 243.2
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