Benefits and risks
Smoother returns, preserving capital and managing volatility
The AIMS Target Return Fund aims to help institutional investors manage funding levels more effectively by targeting long-term investment returns similar to traditional equity strategies but for much less volatility and irrespective of market conditions.
In helping investors to manage their funding volatility, the fund aim to be less than half as volatile as an investment in global equities over any three-year period.
By focusing on diversifying portfolio risk rather than asset allocation, we aim to provide investors in the fund with specific levels of return from a wide range of sources, unconstrained by benchmark considerations. This allows us to focus on providing the long-term performance you need, even as market conditions change.
Largely uncorrelated strategies
The fund aims to help investors diversify their portfolios with an approach that targets a specific levels of return with little correlation to equities, bonds and other traditional asset classes.
The aim of the fund is not guaranteed and clients may get back less than the original amount invested.
Investment time horizon consideration
The fund may not be appropriate for those who plan to withdraw their money within five years.
The value of the fund may be subject to market fluctuations. This could lead to values being adversely and unpredictably affected by various factors including political and economic events. As such, the value of investments may go down as well as up and clients may receive less than the original amount invested.
The fund can make significant use of derivatives with the aim of helping it meet its return and volatility targets. As a result of the high degree of leverage typically employed when trading financial derivatives, a relatively small price movement in the underlying asset may result in substantial losses to the funds’ assets.
Exchange rate fluctuations
The fund may invest outside of the UK or hold currencies other than sterling. So, the value of investments may fall or rise depending on changes in the exchange rates of currencies to which the fund is exposed.