View the article online at http://citywire.co.uk/wealth-manager/article/a759707
Munro: Aviva has better resources than SLI & can double profits
by Eleanor Lawrie on Jul 01, 2014 at 10:43
Aviva Investors' chief executive Euan Munro expects his new Gars-alike absolute return fund range can double the firm's profitability.
Munro also claims that Aviva has wider capabilities than his ex-employer Standard Life Investments.
His comments come as the firm unveils a three-strong absolute return range, starting with the multi-strategy target return fund which launches on Tuesday. The firm will later launch an income-focused fund, alongside an inflation strategy.
The range will be managed by Peter Fitzgerald and Dan James, overseen by Munro (pictured), who is a founder member of Standard Life Investments' (SLI) Gars team.Munro (pictured) said the strategy could double Aviva’s profitability.
‘The profitability of Aviva Investors historically has not been very high and if we can do £10-15 billion on this kind of proposition, that would double the profitability of Aviva Investors,’ he said.
Fitzgerald added: ‘If we get even £10, 20 or 30 billion in short order, it would be transformational as a business’.
In Munro's view, as the asset management industry becomes increasingly intermediated, he expects the newrange can do a good job of managing risk to specific outcomes.
‘What we are trying to do at Aviva investors is putting together substantial capability to deliver outcomes that are really important to our customer base,’
‘We would have to take quite significant risk in order to get that (income) from a fixed income portfolio. We think we can do better than that. We think we can give people an income with a highly diversified set of opportunities.’
SLI vs Aviva
News sponsored by:
As the UK coalition government strives to rebalance the national economy, so called 'reshoring' looks set to play an increasingly important role in economic recovery.
Today's top headlines
With talk on interest rates on the horizon, our latest roundtable debate covers income investing against a changing backdrop