Aviva Investors expands AIMS range with launch of Target Income Fund
Aviva Investors, the global asset management business of Aviva plc (‘Aviva’), announces the launch of the second fund in its AIMS (Aviva Investors Multi-Strategy) range. Designed to deliver solutions that meet the financial goals of customers, the Target Income Fund follows the successful launch of the AIMS Target Return Fund in July 2014.
1 DECEMBER 2014
The AIMS Target Income Fund is an actively managed, globally-unconstrained multi-strategy fund that aims to deliver an annual income in all market conditions.
- Targets annual income of 4% above the Bank of England base rate before corporation tax.1
- Seeks to preserve capital.
- Manages volatility to a target of less than half the volatility of global equities over any three-year period.
- Pays income on a monthly basis.
The fund is managed by Peter Fitzgerald, Head of Multi-Assets and Ian Pizer2, Nick Samouilhan and Brendan Walsh, Fund Managers in the Multi-Assets team. The team currently manages over £60 billion in multi-asset portfolios.3 They are supported by a dedicated risk analysis team and an investment strategy team. Chief Executive Euan Munro chairs the Strategic Investment Group, a company-wide forum that provides the fund’s managers with investment ideas.
Euan Munro, Chief Executive of Aviva Investors, said:
“Freedom of choice for customers will be crucial in 2015. From our conversations with them, we have found they are increasingly looking for outcome-focused investments, dictated by their financial needs rather than a benchmark. With that in mind, we created the AIMS suite of products. The Target Return Fund, the first in the range, responded to clients' goals of achieving reliable fund growth and now we’re addressing the need for a reliable income stream with the Target Income Fund.”
Peter Fitzgerald, Head of Multi-Assets and Co-Fund Manager added:
“Our philosophy is that properly constructing funds is as important as coming up with good investment ideas. Clients want their money to work hard and be protected in all market conditions and the strategies in the AIMS Target Income Fund are designed to interact with each other whatever is happening in markets. Clients also manage their finances on a monthly basis and expect monthly income payments, rather than funds which pay on a quarterly basis. We believe that this a truly differentiated income proposition against existing funds in the market.”
About the fund
To achieve its target income, the fund’s managers have the freedom to invest in a broad range of different strategies. 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. The fund intends to pay natural income to clients, rather than capital as income.
The fund is unconstrained by a benchmark, with assets allocated between investment strategies depending on how much each one contributes to the fund’s 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.
Portfolio Managers Peter Fitzgerald, Ian Pizer, Nick Samouilhan and Brendan Walsh are supported by the 12-strong Multi-Asset Portfolio Management team, who will assist with the management of the fund on a day-to-day basis. 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 income target is expressed as an annual target, measured daily from 1 April to 31 March each year, using the prevailing Bank of England Base Rate and is based on the daily value of the fund. Because the period from the fund’s launch to its first accounting year end at March 2015 is less than 12 months, the fund’s monthly income payments may not equate to the stated annual income target in this initial phase.
The Aviva Investors Multi-Strategy Target Income Fund is registered for sale in the UK as an Open Ended Investment Company (OEIC).
- Class 2 (platforms/institutional): Nil
- Class 6 (retail): Currently discounted to 0% other, than for execution only where it is up to 1%.
- Ongoing charges
- Class 2 (platforms): 0.85%4
- Class 6 (retail): 1.10%4
More information on the Aviva Investors Multi-Strategy Target Return Income Fund can be found at: www.avivainvestors.com/multi-strategy
- Corporation tax (currently 20 per cent) is payable on the fund’s income.
- Ian Pizer is subject to regulatory approval.
- As at 30 September 2014.
- The ongoing charge is estimated to reflect a current indication of expected charges. The ongoing charge figure would ordinarily be based on expenses incurred in the previous accounting period. If customers access Aviva Investors funds via a platform then they should speak to them directly about their terms and conditions and the availability of share classes. Investments into this share class via a fund platform will be subject to that platform’s minimum investment criteria.
- Ends -
For more information contact:
Aviva Investors Media Relations
+44 (0)20 7809 8452
Aviva Investors Media Relations
+44 (0)20 7809 6252
Aviva Investors Media Relations
+44 (0)20 7809 8791
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 December 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 Income 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.
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 £240 billion as at 30 September 2014.
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