Insurer Zurich has given BlackRock a mandate to passively manage £3bn of its funds sold through Allied Dunbar and Eagle Star brands in a move that aims to create stability for investors.
The funds, which represent 20% of Zurich's £15bn unit-linked managed funds, will be invested on an index tracking basis by BlackRock Tracker Unit Trusts. The insurer said it is responding to a change in market developments and wanted to reduce volatility to give its policyholders the opportunity for better risk-adjusted returns. It said there would be no change to the investment objectives of the managed funds and the remaining 80% of the funds will remain actively managed by Threadneedle, which has held the mandate since 1997. Zurich UK Life chief investment officer Vince Rennie s...
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