Skandia is taking its multi-manager approach to the institutional pensions market with the aim of ra...
Skandia is taking its multi-manager approach to the institutional pensions market with the aim of raising £500m in assets under management in the first year.
Open to investments of £500,000 or more, investors will have access to Skandia's global multi-manager funds, as well as fund managers not usually seen in the institutional market.
All funds will be managed by Skandia, and the life insurer predicts they will see most interest from pension trustees in its flagship Skandia balanced portfolio as it carries an AMC of 0.85% and no entry or exit costs.
Non-pensions investors will also be able to invest in the institutional funds, says Phil Morse, investment brand manager.
"Obviously we have a fresh start in the market place but we hope to be looking at figures of £1/2bn in premiums within a year," says Morse.
"We will be looking at medium to large companies through the IFA network but also smaller County Council pension schemes."
"The main reason for our entry into the market is the changes that have occurred due to the proposals about polarisation. We also wanted to concentrate on a new market and the institutional pensions market was one we had not been involved in before."
Skandia's move comes at a time when there has been increased focus on pension trustees - since the release of the Myners report and the Unilever case - as investments now have to delegate investment decisions to a third party or become investment experts.
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