AIG Life is planning a fund of funds suite for its offshore bond domiciled in Ireland. The firm is...
AIG Life is planning a fund of funds suite for its offshore bond domiciled in Ireland.
The firm is considering including global growth, cautious managed, aggressive growth and absolute return multi-fund portfolios.
Each would hold 10-15 funds and be run on a discretionary basis for those who choose to link to these products via the bond.
Paul Higginbotham, AIG Life's head of research, said: 'We would have pre-set risk parameters and tracking error targets and they would be rigidly adhered to. We would not be looking at taking style bets and would combine value and growth'
A final decision has not yet been made on the move, nor on costs for investors choosing these products.
AIG Life's Dublin-based bond currently has links to 80 funds from external managers, plus 68 in-house funds. Its links include property and protected products, although it does not link to with-profits funds.
Higginbotham said any multi-managed portfolios would be benchmarked to the sector peers.
The group's offshore bond presently imposes a minimum investment of £5,000, $7,000 or e7,000.
The increase in minimum AE contributions has had little impact on opt-out rates - with cessations after April increasing by less than two percentage points, data from The Pensions Regulator (TPR) shows.
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