MANAGED INCOME MULTI_MANAGER FUND OF FUNDS
Unit-linked fund of funds
Income and growth by investing in bond funds, property funds and equity income funds
Lump sum £500
39.2% UK corporate bond funds, 18% UK equity income funds, 11.8% UK high yield bond funds, 12% property funds, 13% global bond funds, 6% UK gilt funds
performance fee up to 0.25%
Tel: 0700 244 5433
AIG Life's Managed Income Multi-Manager Fund of Funds is a unit-linked fund available through AIG Life's bond and pension products. It invests in externally managed funds that are already included in AIG Life's Active Access range.
Hartley Greatbatch principal Keith Lewis feels that although a lack of name awareness has been a problem for AIG Life in the past, it is now growing in the UK. He points out that in today's market the appetite for risk and reward is important and thinks this product's asset mix of equities, property and gilts will be useful for AIG's pension and bond investors.
He says: “While the aim of the product is to tame volatility, as quoted by AIG in the product literature, the success of this product will depend upon its fund management skills since the funds will be continually monitored. The main strength is AIG's approach of rigorous fund selection and the possible range of funds available.”
Lewis feel s AIG's core and satellite approach to fund selection is suitable to the market at this time. He is also a fan of the performance-related charging structure where a percentage of the charges is rebated to the investor depending on which quartile it is in. He explains: “AIG's charging structure for bonds and guaranteed products has been competitive in the past. Although the use of a performance-related charging structure is not new, it will be followed with anticipation by IFAs.”
However, Lewis is not happy with everything about the fund and finds the literature lacking on one respect. He says: “I believe that in today's market of increased compliance procedures IFAs need more technical information on how the fund is going to be managed, with clear details of qualitative analyses.”
Considering where the competition will come from Lewis says: “There are a growing number of these products from other brand names such as Skandia and fund management groups such as Jupiter and Fidelity. Also, more life offices are now offering external funds and funds of funds. Selestia is growing in this market as well as Winterthur on pension products.”
Suitability to market: Average
Investment strategy: Good
Adviser remuneration: Average