Miton funds will be the first and only external Fof available via group's active access range
AIG Life is to add Miton's Strategic fund of funds (Fof) to its Active Access range of third party links this autumn and may add the Global Growth fund in due course.
Miton's funds will be the first and only external Fof available on AIG's platform. It is also the first time Miton portfolios will be available through onshore life or pensions products, although the they are accessible through Canada Life's offshore bond.
The Miton Fof can be accessed through all the AIG tax wrappers including the Capital Portfolio Bond, the Trustee Portfolio Bond, the Premier Trustee Investment Bond and the Personal Pension Bond.
AIG Life runs five in-house Fofs including the Income fund, launched in May 2004, and the Global Growth Cautious Managed, Balanced Managed and International Aggressive, portfolios launched in June 2003. Paul Shallis, head of life and pensions at AIG said: "The Miton Fofs do not compete with out range but rather complement it and offer a different investment style."
Fund manager at Miton Tom McGrath noted the Miton investment style is driven by asset allocation with an absolute return focus. "AIG's in-house funds are more benchmark aware with lower risk so the two approaches are very different," he added.
While AIG's Fofs only invest into the 80 external fund links available through the Active Access range, the Miton funds can use the full universe of available investments both on and offshore. McGrath said: "About 60% of our investments are offshore and 40% UK domiciled."
Charges on the AIG life or pensions wrapper range from 0.75% to 1% depending on the product chosen. The annual management fee on the Miton funds is expected to be slightly higher than the single manager funds on the Active Access range because of the underlying charges associated with Fofs.
Shallis said: "We do not know the exact charges yet but we will keep them competitive."
AIG and Miton have arranged a fee sharing agreement on the funds.