Norwich Union has changed investment style on its funds of funds to allow acc-ess to an unrestricted range of unit trusts.
The life insurer has moved from a fettered investment style to unfettered, which means that managers can pick investments from across the board.
Fund of funds managers at NU could previously only invest in a selection of around 80 funds available through the Portfolio investment bond.
NU offers three funds of funds through Portfolio – the balanced fund of funds, cautious fund of funds and growth fund of funds.
These are managed on a daily basis by Investment Manager Selection, a firm that selects and monitors underlying investments.
NU believes that removing the fettered constraints and giving IMS greater investment freedom will increase the risk profile of the funds.
Head of investment product development Neil Davies says: “Fund of funds are a core part of the NU range of investments and this enhanced proposition is now available through onshore and offshore bonds and some pension products.
“By investing in a wide range of different funds, the funds of funds can achieve greater diversification. This can help reduce risk while producing consistent performance.”