AIG Life will be the first UK group to offer performance fee rebates on funds of funds when it launc...
AIG Life will be the first UK group to offer performance fee rebates on funds of funds when it launches its range on 5 June.
The four funds, Cautious Managed, Balanced Managed, Global Growth and International Aggressive, will be available via AIG's life and structured products. They will be managed by Paul Higginbotham, head of fund research.
The performance management fee on each fund will be 0.25% if it produces first quartile performance against sector average on a 12-month rolling basis. For second quartile performance the charge will be 0.1%. If, however, the fund delivers third quartile performance, AIG will rebate 0.1% to investors. For fourth quartile performance, the group will return 0.25%.
Pension, life and offshore (Dublin domiciled) versions of each fund will be available. AIG had been in discussions with Cazenove before the latter's deal with M&G, but eventually chose to put the funds together itself.
Asset allocation is based on a model provided by the global asset allocation committee of AIG's US parent. The underlying funds have been selected from AIG's Active Access range, its active buy list of third party funds. All research is done in-house by the group's six-strong team.
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