This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. Find out more here.
X
MM-Cover-Top-310714.jpg

Aviva looks to mandates for flexibility

  • Print
  • Comment

The multi-asset team at Aviva Investors will be adding a small amount of funds to its manager of manager portfolios to bring the flexibility of these portfolios in line with its fund of funds range.

The funds of funds, which invest at least 90 per cent in funds, already hold up to 10 per cent in segregated mandates that form the manager of manager portfolios. The manager of manager of portfolios will apply these limits in reverse, so at least 90 per cent will be invested in mandates and 10 per cent in funds.

Before April last year, the fund of funds were run by Fundquest while Close took care of the manager of managers portfolios. The multi-asset team says that unlike the previous managers, they can benefit from the scale of their combined assets, currently £3bn, making it easier for the fund of funds to invest in mandates.

The team says mandates provide access to a manager’s skills with lower fees than even the institutional share classes of Oeics. Mandates also allow the multi-asset team to reduce the manager’s ability to invest in areas to which it already makes its own allocations. In the case of the UK equity mandate run by Investec, which is held in the funds of funds, these areas are cash and global stocks.

One other mandate appears in the funds of funds, a global bond mandate managed by institutional firm Rogge. This mandate provides cost-effective exposure to lower-risk global bonds and is the only way to access this particular manager.

Aviva Investors senior portfolio manager Peter Fitzgerald says: “The ability to use mandates is driven by scale. If you run £400m to £500m in portfolios, that is not big enough to use mandates. But if you run £3bn, you are able to use mandates. Now that we have the fund of funds and manager of managers in-house, we can use that synergy and drive down fees.”

  • Print
  • Comment

Daily Email Updates
If you enjoyed this article, sign up to receive the latest news and analysis from Money Marketing.

The Money Marketing CPD Centre
Build your annual CPD - you can log and plan your CPD hours for free with The Money Marketing CPD Centre.

Taxbriefs Advantage
Advantage is a digital reference source giving unbiased, independent, answers to your technical queries. Subscribe to Taxbriefs Advantage.

Have your sayEdit my profile/screen name

You must sign in to make a comment

The Cost of Advice

Sponsored by Brooks Macdonald

Fund Data

Editor's Pick



Poll

Do you think we will see a surge in pensions liberation activity in the wake of the Budget?

Job of the week

Latest jobs

View all jobs

Most recent comments

View more comments