Aviva Investors winds down property fund as assets shrink

Aviva Investors is winding down its £79m Property Investment fund as assets have shrunk to a point where "it is no longer optimal" to run.

The vehicle was just under £200m at the start of 2011, but it has seen a drop in assets and disappointing performance since then (the fund is down 19% over three years to 7 February). The vehicle was managed by Philip Nell, who also runs the group's £1.5bn property trust, which has shown much stronger returns, up 9.7% over three years. A spokesman for the group said: "The size of the fund has reduced to a point where it is no longer optimal and may impact upon the portfolio's diversification and its risk return profile. "The closure of this fund has absolutely no impact on the Aviv...