AVD UK targets £100m in first year
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AVD, Austrian-based provider of capital protected and tax efficient investments is soon to launch into the UK and is targeting £100m under management in its first 12 months.
The firm has seen its UK Sipp funds under management grow 150 per cent in the past six weeks with the UK operation due to fully launch in the next few weeks.
It has secured 25 Sipp approved distributors in the market including Simply Biz, Alliance Trust Savings, Liberty Sipp, Pointon York Sipp solutions and Standard Life Assurance.
AVD’s portfolios allow investors to participate in a pool of traded endowment policies from a range of British insurance companies and offer asset backed capital protection averaging 85 per cent with returns treated as capital gains tax.
Joint managing director Richard Cook says: “We are quite comfortable that the demand is there but it is just how quickly we start seeing capital inflows grow. I would say about 60-70 per cent of the money that is being placed at the moment is Sipp money so we adjusted the product to suit the Sipp market. We have had a huge interest partly because of the capital guarantee on the product which is 85-90 per cent on average and people who are nearing retirement are less willing to gain exposure to volatile markets or assets so it is sitting quite nicely with Sipps.”
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