(London): Aviva Investors, the global asset management business of Aviva plc (‘Aviva’), announces the launch of the first fund in its Multi-Strategy range. This is part of a renewed focus under Chief Executive Euan Munro to deliver solutions shaped to meet the financial goals of customers.
The Aviva Investors Multi-Strategy Target Return Fund aims to deliver a return of 5% per annum above the Bank of England base rate over any rolling three-year period by investing in a globally diversified multi-strategy portfolio. It aims to reach its target return whilst limiting the volatility of returns compared with an investment in global equities.
The creation of the Aviva Investors Multi-Strategy range is the business’s first major initiative under Chief Executive Euan Munro, who joined in January 2014. Euan, a pioneer of global multi-asset investing, is a strategic adviser to the fund and chairs the Strategic Investment Group, a company-wide forum that provides the fund’s managers with investment ideas.
On a day-to-day basis, the Aviva Investors Multi-Strategy Target Return Fund is run by Peter Fitzgerald, Head of Multi-Assets, and Dan James, Global Head of Rates. Peter and Dan have a combined investment experience of 38 years and have specialised in multi-asset and target return investing throughout their careers. They are supported by a dedicated risk analysis team and an investment strategy team.
Euan Munro, Chief Executive of Aviva Investors, said:
“No matter who they are, investors want simple and specific outcomes from their financial products. I have spent twenty years speaking with clients and found four financial goals common to everyone. Whether you are a pension scheme, corporation, financial adviser or individual saver, what matters is achieving reliable fund growth, securing a reliable income stream, obtaining a return that exceeds inflation or increases the likelihood that you will meet a specific future financial liability.
“The Multi-Strategy range reflects our renewed focus as a business. We aim to deliver simple and specific outcomes that clients will value, ignoring traditional benchmarks and instead combining our considerable expertise in real estate, fixed income and equities together into compelling solutions.”
About the fund
To achieve this target return, the fund’s managers have the freedom to invest across different assets and countries, from company shares, fixed income securities and deposits to other regulated funds. The fund seeks multi-year timeframe opportunities identified by research and analysis, while managing overall portfolio risk over both the long term and the short term.
This creative approach of the fund focuses on three key tenets:
- Opportunities are more likely to exist at a horizon of three years than over shorter horizons.
- Looking both across and within asset classes allows for the greatest opportunity set.
- Specialists are more likely to spot opportunities than generalists.
The fund is unconstrained by a benchmark, with assets allocated between investment strategies depending on how much each strategy contributes to fund risk. This means that in aiming to meet the investment objective, the fund managers can invest as much or little as they want across asset classes and geographies.
Co-Lead Portfolio Managers Peter Fitzgerald and Dan James are supported by the Multi-Asset Portfolio Management team, who will assist with the management of the fund on a day-to-day basis. The team of 12 is already responsible for the management of over £68 billion in multi-asset portfolios*. In addition, there is further support from a dedicated risk analysis team and an investment strategy team, which is responsible for formulating investment views and themes across the board.
The Aviva Investors Multi-Strategy Target Return Fund is registered for sale in the UK as an Open Ended Investment Company (OEIC). A similar fund will also be made available to investors in certain European countries through a European structure (SICAV).
- Retail share class: 1.00% p.a.
- Institutional share class: 0.75% p.a.
- Minimum investment: £1,000.
More information on the Aviva Investors Multi-Strategy Target Return Fund can be found at: www.avivainvestors.com/multi-strategy
* As at 31 March 2014.
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Notes to Editors
The information and opinions contained in this document are for use by the financial press and media only, and do not purport to be full or complete. No reliance may be placed for any purpose on the information or opinions contained in this document nor should they be seen as advice.
The press release is provided on the basis that Aviva Investors Global Services Limited is not causing the communication of a financial promotion under exemption of the Financial Promotion Order, as Aviva Investors Global Services Limited has no control over the way in which an article based on this press release is prepared and published by the financial press and media.
Except where stated as otherwise, the source of all information is Aviva Investors Global Services Limited (“Aviva Investors”) as at 1 July 2014. The value of an investment and any income from it may go down as well as up and the investor may not get back the original amount invested. Past performance is not a guide to the future.
The attention of investors is drawn to the ‘Risk Warnings’ contained in the Prospectus. Due to the fact the strategy will make significant use of financial derivatives, the following risk factor is particularly relevant:
Derivative risks: 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 fund’s assets.
As the fund may invest outside of the UK or hold currencies other than sterling, any currency exchange rate movement may cause the value of an investment to fall as well as rise.
The Aviva Investors Multi-Strategy Target Return Fund is a sub-fund of the Aviva Investors Investment Funds ICVC. 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 from Aviva Investors UK Fund Services Limited, St. Helen’s, 1 Undershaft, London EC3P 3DQ or by contacting our Relationship Management Team on 0800 0154773* or email them on firstname.lastname@example.org You can also download copies from our website.
*Telephone calls may be recorded for training and monitoring purposes. Calls are free from a BT landline. Call charges may vary from mobiles and other networks.
Investment into the Fund is provided by Aviva Investors UK Fund Services Limited, the Authorised Fund Manager. Registered in England No. 1973412. Authorised and regulated by the Financial Conduct Authority. Firm Reference No. 119310. Registered address: St. Helen’s, 1 Undershaft, London EC3P 3DQ. An Aviva company. www.avivainvestors.co.uk.
Issued by Aviva Investors Global Services Limited, the Investment Manager to the Fund registered in England No. 1151805. Registered Office: St. Helen’s, 1 Undershaft, London EC3P 3DQ. Authorised and regulated by the Financial Conduct Authority and a member of the Investment Management Association. Contact us at Aviva Investors Global Services Limited, St. Helen’s, 1 Undershaft, London EC3P 3DQ. Telephone Calls may be recorded for monitoring and training purposes. 14/0418
Aviva Investors is the global asset management business of Aviva plc. The business delivers investment management solutions and services to clients worldwide. Aviva Investors operates in 15 countries in Asia Pacific, Europe, North America and the United Kingdom with assets under management of £241 billion as at 31 December 2013.
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* Based on Aviva plc Annual Report and Accounts 2013.