Fund commentary

Aviva Investors Global Equity Income Fund

Month in review for May 2026

Richard Saldanha

Fund Manager

Summary

Month in review

May delivered a strong rebound in global equity markets, with all major regions posting positive returns. In the fund, materials exposure was the biggest drag on performance in May. Information technology was the strongest contributor, led by NXP Semiconductors and Samsung.

Looking ahead

In an environment where market leadership may be broadening, the fund’s balanced approach remains central to delivering sustainable income and total return.

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 29/05/2026)
GBP 647.8m
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

May delivered a strong rebound in global equity markets, with all major regions posting positive returns. Sentiment improved as stagflation concerns eased, supported by renewed optimism around a potential US-Iran agreement and robust AI-driven earnings. In the fund, materials exposure was the biggest drag on performance in May, with CRH declining despite delivering a broadly reassuring set of results. The company is facing higher input costs linked to the Iran conflict, but we remain constructive given resilient demand and its proven ability to pass through cost increases over time. Information technology was the strongest contributor, led by NXP Semiconductors and Samsung. Notably, the top four performers, Samsung Electronics, Analog Devices, TSMC and NXP, were all from the IT sector, highlighting the continued strength of the AI theme. Encouragingly, we are seeing this momentum begin to broaden into areas such as memory, storage and networking. Outside IT, Tapestry Inc. was a key contributor within the Core Yield bucket. Strong quarterly results, driven by standout growth at Coach and improving margins, supported performance. We initiated a position in BAE Systems, where we see strong long-term potential supported by rising global defence spending and a robust order backlog, despite relatively flat share price performance over the past year.

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 May 2026

So far this year, equity markets have been shaped by a combination of AI-driven momentum and episodes of geopolitically driven volatility. Following a period of concentrated returns, particularly among AI-linked companies, market leadership now appears to be broadening, with a wider range of factors influencing performance. While AI-related businesses continue to benefit from strong structural demand, their dominance has moderated. At the same time, macroeconomic influences, including geopolitics, energy market dynamics and interest rate expectations, have become more prominent. These forces have contributed to higher volatility and more differentiated outcomes across sectors. For example, energy companies have benefited at times from rising oil prices linked to geopolitical developments such as disruptions to key supply routes. In this evolving environment, investors are faced with a more complex backdrop. Rather than a single dominant theme, returns are increasingly dependent on prevailing market conditions. Within the fund, this is reflected in the three-bucket approach consisting of Income Growth, Mature Yield and Core Yield. By combining these complementary sources of return, the fund is designed to adapt to changing market conditions rather than rely on any single driver. In an environment where market leadership may be broadening, this balanced approach remains central to delivering sustainable income and total return.

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.

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Access key fund documentation and performance reports.

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.