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Fund commentary

Aviva Investors Global Equity Income Fund

Month in review for August 2026

Richard Saldanha

Fund Manager

Summary

Month in review

The fund underperformed its benchmark in August, with technology exposure and stock selection weighing on returns despite support from Microsoft. Strong contributions from healthcare and industrials helped offset weakness. Portfolio activity focused on broadening technology exposure while maintaining a disciplined income strategy.

Looking ahead

We believe a broadening of market leadership would be supportive for equity income. A wider range of sectors participating in growth creates a more diverse opportunity set for stock selection.

Key facts

Fund managers
Richard Saldanha since 11/2013,
 Edward Kevis since 08/2024
Share class inception date
14/02/2000
Fund size (as at 28/08/2026)
GBP 648.5m
Benchmark
MSCI ACWI NR GBP

Fund overview

Objective: To grow your investment through a combination of income and capital growth, and provide an average annual net return greater than the MSCI® All Country World Index over a rolling 5-year period by investing in shares of global companies. Within this combined return, the Fund aims to deliver an income equivalent of at least 125% of the income return of the Index, over any given 12-month period.

Month in review

The fund posted disappointing performance against its benchmark in August. Information technology was the largest detractor, primarily due to the fund’s lower exposure versus the benchmark. Microsoft nevertheless contributed positively. More broadly, our underweight in technology and stock selection within the sector has detracted from performance over the past year. Despite global equity income strategies typically lagging a strong narrow market, we have been addressing this by broadening our technology exposure whilst maintaining our dividend approach, which aims to reinforce the upside capture. Consumer discretionary exposure also detracted, with weakness in Tapestry partly offset by Target and the absence of Amazon in the fund. Healthcare was the strongest relative contributor, led by Merck, while industrials benefited from ADP, Experian, Motorola Solutions and Schneider Electric. In terms of activity highlights during the month, we initiated positions in Advantest, Keyence, Magna International, Techtronic Industries and Singapore Telecommunications, and added to Tapestry. We exited Siemens and Home Depot, while taking profits in Merck, Microsoft, Fresenius and Inditex.

Performance

For the latest Monthly, Cumulative, and Annualised Fund performance data please refer to the PDF factsheet below.

Past performance is not a guide to future performance
Basis: Mid to mid, net income reinvested, net of ongoing charges and fees, in the share class reference currency and net of tax payable by the Fund. For full details of the benchmark please see the PDF factsheet.

The Fund's performance is measured against the MSCI All Country World Index.

Looking ahead Last updated 31 August 2026

We see attractive opportunities across the businesses enabling AI adoption, from semiconductor equipment and data storage to automation and industrial technology. These companies provide the infrastructure underpinning the AI build-out, while often exhibiting the characteristics we look for in global equity income: durable competitive advantages, strong cash generation to support a growing dividend, and attractive valuations. Recent additions to the fund such as Advantest (chip testing), Keyence (automation), Seagate (storage) and Applied Materials (memory) reflect this broader opportunity set and help diversify our exposure across different parts of the AI value chain. More broadly, we believe a broadening of market leadership would be supportive for the global equity income theme. A wider range of sectors and businesses participating in market growth would create a more diverse opportunity set for active stock selection. This allows investor to retain exposure to the positive long-term equity story, while reducing reliance on a narrow group of market leaders and retaining the discipline of cash generation, dividends and valuation.

Risks

Full information on risks applicable to the Fund are in the Prospectus and the Key Investor Information Document (KIID).

Investment and currency risk

The value of an investment and any income from it can go down as well as up and can fluctuate in response to changes in currency exchange rates. Investors may not get back the original amount invested.

Illiquid securities risk

Some investments could be hard to value or to sell at a desired time, or at a price considered to be fair (especially in large quantities).As a result their prices can be volatile.

Documents

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Important information

THIS IS A MARKETING COMMUNICATION

The source for all performance, portfolio and fund breakdown data is Morningstar unless indicated otherwise. All data is as at the date of the Factsheet, unless indicated otherwise.

Unless stated otherwise any opinions expressed are those of Aviva Investors. They should not be viewed as indicating any guarantee of return from an investment managed by Aviva Investors nor as personalised advice of any nature. This document should not be taken as a recommendation or offer by anyone in any jurisdiction in which such an offer is not authorised or to any person to whom it is unlawful to make such an offer or solicitation. Portfolio holdings are subject to change at any time without notice and information about specific securities should not be construed as a recommendation to buy or sell any securities.

For further information please read the latest Key Investor Information Document and Supplementary Information Document. The Prospectus and the annual and interim reports are also available on request. Copies in English can be obtained, free of charge from Aviva Investors, PO Box 10410, Chelmsford CM99 2AY. You can also download copies at www.avivainvestors.com

Issued by Aviva Investors UK Fund Services Limited, the Authorised Fund Manager. Registered in England & Wales No. 1973412. Authorised and regulated by the Financial Conduct Authority. Firm Reference No. 119310. Registered address: 80 Fenchurch Street, London, EC3M 4AE. An Aviva company.

MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indices or any securities or financial products. This report is not approved, endorsed, reviewed or produced by MSCI. None of the MSCI data is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such.