Preference share among three Aviva funds to close
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Aviva Investors is to close three funds, including its long-standing preference share vehicle.
The £15.8m fund, which is managed by Stephen Lee, was launched in 1973 and sits in the strategic bond sector. The firm is closing the fund due to a limited number of new preference shares being issued in the UK as well as concerns over the liquidity of the securities.
Aviva Investors is also closing its £34.1m UK growth and value fund, managed by Chris Complin and Michael Barakos, and the £33.7m UK income opportunities fund managed by Robin West and Toby Belsom. Both funds are deemed to be too small to be viable and it is also understood that the biggest investor in both funds wants to withdraw their assets. All three funds are to close on September 22.
Investors can switch to another fund or cash in their investment.
Aviva Investors has also changed the investment policy of its £26m global property fund. From September 22, the fund will no longer be restricted to investing in properties that generate at least 50 per cent of their earnings from rental income.
Aviva was unavailable for comment.
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