Asset management, United States

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PPM America
  AER CER
  2010
£m
2009
£m
Change
%
2009
£m
Change
%
Total IFRS operating profit 10 6 67 5 100

Business overview

PPM America (PPMA) manages assets for Prudential's US, UK and Asian affiliates. PPMA also provides other affiliated and unaffiliated institutional clients with investment services including collateralised debt obligations (CDOs), private equity funds, institutional accounts, and mutual funds. PPMA's strategy is focused on managing existing assets effectively, maximising the benefits derived from synergies with our international asset management affiliates, and leveraging investment management capabilities across the Prudential Group. PPMA also pursues third-party mandates on an opportunistic basis.

Financial performance

IFRS operating profit in 2010 was £10 million, compared to £6 million in 2009.

At 31 December 2010, funds under management of £54 billion were as follows:

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  AER
  2010 2009
  US
£bn
UK
£bn
Asia
£bn
Total
£bn
US
£bn
UK
£bn
Asia
£bn
Total
£bn
Insurance 31 15 46 29 12 41
Unitised 1 1 5 7 1 4 5
CDOs 1 1 1 1
Total funds under management 33 16 5 54 30 13 4 47

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Curian
  AER CER
  2010
£m
2009
£m
Change
%
2009
£m
Change
%
Gross investment flows 1,361 796 71 806 69
Revenue 39 25 56 26 50
Costs (38) (31) 23 (32) 19
Total IFRS operating profit/(loss) 1 (6) 117 (6) 117
Total funds under management 3,457 2,260 53 2,331 48

Business overview

Curian Capital, Jackson's registered investment advisor, provides innovative fee-based managed accounts and investment products to advisers through a sophisticated technology platform. Curian expands Jackson's access to advisers while also complementing Jackson's core annuity product lines with Curian's retail asset management products.

Financial performance

At 31 December 2010, Curian had total assets under management of £3.5 billion, compared to £2.3 billion at the end of 2009. Curian generated deposits of £1,361 million in 2010, up 71 per cent over 2009. The increase in both deposits and assets under management was mainly due to an expansion of Curian's investment platform with the addition of two new investment strategies, plus an expansion of the firm's wholesaling team, in addition to a rebound from the difficult conditions in the equity markets in early 2009.

Curian's assets under management surpassed the break-even point during the year, resulting in the firm reporting its first full-year IFRS basis operating profit in 2010, with a net profit of £1 million versus a loss of £6 million during 2009.

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US Broker dealer
NATIONAL PLANNING HOLDINGS, INC. AER CER
  2010
£m
2009
£m
Change
%
2009
£m
Change
%
Revenue 449 390 15 395 14
Costs (438) (386) 13 (391) 12
Total IFRS operating profit 11 4 175 4 175

Business overview

National Planning Holdings, Inc. (NPH) is Jackson's affiliated independent broker-dealer network. The business is comprised of four broker-dealer firms, including INVEST Financial Corporation, Investment Centers of America, National Planning Corporation, and SII Investments.

NPH continues to grow the business and revenue per representative. By utilising high-quality, state-of-the-art technology, we provide NPH's advisers with the tools they need to operate their practices more efficiently. At the same time, through its relationship with NPH, Jackson continues to benefit from an important retail distribution outlet, as well as receive valuable insights into the needs of financial advisers and their clients.

Financial performance

NPH generated revenues of £449 million in 2010, up from £390 million in 2009, on gross product sales of £9.3 billion. The network continues to achieve profitable results, with 2010 IFRS operating profit of £11 million, a 175 per cent increase from £4 million in 2009. At 31 December 2010, the NPH network had 3,461 registered advisers, down slightly from 3,478 at year-end 2009.

 

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