Alliance Trust Investments is to acquire Aviva Investors’ £1.2 billion (about $1.8 billion) sustainable and responsible investment funds - a move in which the Aviva SRI team, head by Peter Michaelis, will move to establish an SRI capability for Alliance.

“In January this year, Aviva Investors decided to focus its business on areas of existing competitive strength, which includes fixed income, multi-asset solutions, real estate and core equities,” said Paul Abberley, interim chief executive at Aviva. “As a result, the decision was taken that a new institutional home should be found for our dedicated SRI capabilities.”

According to a statement, the team will - under an investment-advisory agreement - continue to provide investment advice for the current SRI funds, with each of the funds managed with the same investment objectives and same investment process.

Subject to legal and regulatory approval, full authorised corporate director responsibilities for the seven OEIC funds will transfer to Alliance in early 2013. Meanwhile, for the Luxembourg fund, Aviva said it is “considering the long-term future of the fund structure and will contact investors once any plans are in place and agreed with the regulator”.

The SRI advisory committee will also continue to work with the SRI team following the transfer to Alliance Trust Investments. The agreement is expected to be implemented by 31 August.