Aviva Investors, Alliance Trust Investments in SRI partnership

Aviva Investors and Alliance Trust Investments have entered into an investment-advisory agreement for Aviva Investors’ £1.2bn Sustainable and Responsible Investment (SRI) funds, to be implemented by August 31.

At the same time, the Aviva Investors SRI team, headed by Peter Michaelis, is moving to establish an SRI capability for Alliance Trust Investments. The team will continue to provide investment advice for the current SRI funds and each of the funds will be managed with the same investment objectives and process.

Aviva Investors, the global asset management business of Aviva plc, operates in 17 countries in Asia Pacific, Europe, North America and the UK with assets under management of almost £263bn at end December 2011. Alliance Trust plc, founded in 1888, is a self-managed investment company with investment trust status. It is the largest generalist UK investment trust listed on the London Stock Exchange with gross assets of over £2.6bn.

The affected funds, all from Aviva Investors Sustainable Growth range, are the Absolute Growth, Corporate Bond, European Growth, Global Growth, Managed, UK Growth and Pan European Equity. The other fund is the Aviva Investors UK Ethical fund.

Full Authorised Corporate Director responsibilities for the seven OEICs will transfer to Alliance Trust Investments in early 2013, subject to legal and regulatory approval. For the Luxembourg fund, Aviva Investors is considering the long-term future of the fund structure and will contact investors once any plans are in place and agreed with the regulator.

Paul Abberley, interim chief executive at Aviva Investors said: “This is a good outcome for our clients and also our business. The transfer of our SRI team to Alliance Trust Investments will facilitate a seamless transition of responsibilities and ensure consistency is maintained in the investment process.”

In January this year, Aviva Investors decided to focus its business on areas of existing competitive strength, which includes Fixed Income, Multi-Asset Solutions, Real Estate, and core Equities. As a result, the decision was taken that a new institutional home should be found for dedicated SRI capabilities. Abberley said.

Ed Troughton, managing director of Alliance Trust Investments said securing the team led by Michaelis “underlines our future growth strategy of focusing on global equities and fixed income with an emphasis on specialist investment opportunities”.

“The skill set of the SRI team perfectly complements our current approach in both global equities and fixed income. These three core parts of our business will now allow us to design tailored, specialist, investment solutions for our clients – both at the fund and segregated level. This announcement marks the next stage in our development and will help accelerate our path to profitability.”

The SRI Advisory Committee, an independent committee of experts that provides additional oversight and advice on the funds, will also continue to work with the SRI team following the transfer to Alliance Trust Investments.


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