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Aviva Investors closes multi-strategy funds following redemptions
by Eleanor Lawrie on Jun 02, 2014 at 12:34
Aviva Investors is closing two funds which it said had become unviable to run after a large investor decided to redeem their investment.
The £82.2 million UK Absolute Return fund, run by Trevor Green, has lost 3.3% in three years to the end of April, while the £333 million Diversified Strategy fund run by Peter Fitzgerald and Bruno Serdoura has gained 2% in the same time period, compared with 17% for the IMA Mixed Investment 20-60% shares sector. Both will close next month.
'The Aviva Investors UK Absolute Return fund and the Aviva Investors Diversified Strategy fund are set to close in July. We believe the decision is in the best interests of investors,' a spokesperson said.
'The largest investor in each fund is withdrawing, which will make the funds too small to be run effectively without increasing costs for the remaining investors and therefore impacting on their returns.'
'Clients have been informed and we are offering them the option to switch into another Aviva Investors fund free of charge, or they can choose to redeem their investment.'
Closing these funds will pave the way for the group to launch a Gars-style absolute return offering later in the year.
The firm appointed Euan Munro (pictured) , architect of the Standard Life Investments' Global Absolute Return Strategy, as chief executive in January.
Last week it announced the appointment of another senior SLI fund manager, Ian Pizer, to its multi-asset team
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