Aviva transfers £1.2bn fund range to Alliance Trust
Firm says it is looking at the structure of Luxembourg-based fund and will update investors at a later date.
Aviva Investors has announced that it has reached agreement with Alliance Trust to transfer its £1.2bn range of sustainable and responsible investment funds, with completion expected by the end of this month.
The deal, which is part of the broader Aviva restructuring that will see its investment arm focus on “areas of existing competitive strength”, will in the first instance take the form of an investment-advisory agreement, with the Aviva Investors SRI team, headed by Peter Michaelis, is moving over to Alliance Trust.
It is intended that full authorised corporate director responsibilities for the seven open ended investment company funds will transfer to Alliance Trust Investments in early 2013, subject to legal and regulatory approval.
The firm said that each of the funds will be managed with the same investment objectives and same investment process.
For the Luxembourg fund, Aviva Investors said it is considering the long-term future of the fund structure and will contact investors once any plans are in place and agreed with the regulator.
Paul Abberley, interim chief executive at Aviva Investors, highlighted that this follows a decision in January to focus its business on “areas of existing competitive strength”, which includes fixed income, multi-asset solutions, real estate, and core equities.
He said: “As a result, the decision was taken that a new institutional home should be found for our dedicated SRI capabilities.”
Separately, Alliance Trust announced its interim results today (2 August) and confirmed that in the first six months of this year its net asset value per share is 423.2p, giving investors a return of 5.5 per cent over the period. Its share price gives investors a return of 4.2 per cent at 352.3p.
Katherine Garrett-Cox, chief executive of Alliance Trust, said: “Alliance Trust has delivered another positive set of results and we are reporting good progress across all parts of the organisation.
“While the performance of the equity portfolio will continue to be the main driver of the Nav for the foreseeable future, the announcement today of our agreement with Aviva Investors is a significant step forward for Alliance Trust Investments.
“The deal will contribute towards its path to profitability and will provide a stepping stone for future growth.
“This deal underlines the current momentum in our subsidiaries, with Alliance Trust Savings also moving towards a sustainable profit, enhancing the returns of the trust to all shareholders.”