27 November 2014 Insurance

Aviva to close $2bn hedge fund team

Aviva is set to close its US-based hedge fund investment team as its targets a potential deal to buy Friends Life. The fund manages around $2 billion.

"Aviva Investors manages the assets of our affiliated companies globally. Some of those assets have been invested in third party hedge funds. Following a comprehensive review of our business, we have decided to exit the business of investing in third party hedge funds and we are working with our affiliates and the underlying hedge fund managers on an orderly transition plan," said a spokesperson for Aviva.

Rating agency Standards & Poor (S&P) affirmed its A+ rating of Aviva, and placed Friends Life’s A- rating on Credit­Watch with positive implications.

“If a formal offer is made and Aviva acquires Friends Life, we could raise the ratings on Friends Life based on the potential ratings uplift for group support,” said S&P.

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