SIG adds Aviva Investors Index Opportunities High Alpha fund
Skandia Investment Group (SIG) has added the Aviva Investors Index Opportunities High Alpha fund to its £2.1bn suite of multi-asset and alternative funds, chiefly its Skandia Diversified and Alternative Investments funds.
The diversification into the index arbitration strategy represented by the Aviva Investors fund comes after SIG’s funds realised profits from overweight positions in equities.
Iyad Farah and Ned Kelly run the Aviva Investors fund. Their strategy is to look for pricing inefficiencies from indices being systematically rebalanced. It relies on both ongoing individual stock analysis as well as index analysis.
The strategy underpins two funds; a lower risk version was launched to external investors last year, while the ‘High Alpha’ version is built for those comfortable taking on more risk for potentially greater rewards.
John Ventre, lead portfolio manager for the Skandia Diversified and Alternative Investments funds said: “As the range of strategies available within UCITS expands, we have been able to add further diversification within our alternatives allocations. We particularly like strategies such as this, which target clear market inefficiencies.”