Austrian provider AVD reveals plans for UK market
AVD, the Austrian pension provider that revealed its plans to enter the UK market at the end of last year, expects to achieve between £50m to £100m under management in its first 12 months in this country.
Richard Cook, joint managing director of AVD UK, said ahead of the provider's official UK launch next month that it has confirmed 25 Sipp distribution partners, including Alliance Trust Savings, AJ Bell, Standard Life and TM Sipp Services.
Mr Cook said the initial interest shown in AVD's proposition in the UK had led him to expect that it would attract up to £100m funds under management in its first year and more in its second.
He said his expectations were based on feedback from distributors that he has been in talks with in recent weeks ahead of the provider's launch to make sure AVD's products are suitable Sipp investments.
The AVD portfolio products provide asset-backed capital guarantee with returns treated as capital gains for tax purposes.
The asset is essentially an investment into with profit funds and bonuses that have already accumulated and are guaranteed by UK life offices.
Capital guarantees are underwritten by the Financial Services Compensation Scheme, at asset level, to 90 per cent of the guarantee with no upper limit.
Mr Cook said feedback from distributors had led him to expect between 60 per cent to 70 per cent of cash placed in the AVD portfolio products in the UK to be held in Sipps.
AVD is part of the FinanzInvest Group, which has operations in Austria, Germany and Switzerland.
The provider was established in 1995 and manages in excess of £500m on behalf of both institutional and retail clients.
