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.
The information in this document is general in nature and has not been designed to take into account the particular circumstances of any investor or class of investors, their investment objectives or needs. Before making any investment based on any information in this document, recipients should consider the appropriateness of the information having regard to their financial situation, objectives, and needs. Investing in the financial products and or services described in this document is not without significant risk, including the risk of delays in the ability to redeem any investment, the risk of loss of capital invested or income expected to be derived, and share, unit or market price fluctuations. Prospective investors are strongly advised to seek their own financial advice about the merits of any investment.
Any opinions expressed are based on the internal forecasts of Aviva Investors and should not be relied upon as indicating any guarantee or assurance of return from an investment or fund managed by Aviva Investors. No part of this document is intended to constitute advice or a recommendation of any nature. The value of an investment can go down as well as up and can fluctuate in response to changes in the foreign exchange rates of the currencies in which underlying investments are denominated.
Past performance is not a guide to future performance. Performance figures shown are sourced from Aviva Investors unless indicated otherwise, on the pricing and income reinvestment basis stated.
The distribution and offering of shares may be restricted by law in certain jurisdictions. This document is not and should not be taken or construed as a recommendation, solicitation or offer either (i) by anyone in any jurisdiction in which such an offer, recommendation or solicitation is not authorised or (ii) to any person in any jurisdiction to whom it is unlawful to make such an offer, recommendation or solicitation.
You are not authorised to redistribute this document nor qualified to make any offer, representation or contract on behalf of Aviva Investors on the basis of this document.
IMPORTANT INFORMATION SINGAPORE– The Aviva Investors Multi-Strategy Target Return Fund and Aviva Investors Multi-Strategy Target Income Fund (the “Funds”)are registered as restricted schemes in Singapore and can be offered only: (i) to "institutional investors" pursuant to Section 304 of the Securities and Futures Act, Chapter 289 of Singapore (the "Act"), (ii) to "relevant persons" pursuant to Section 305(1) of the Act, (iii) to persons who meet the requirements of an offer made pursuant to Section 305(2) of the Act, or (iv) pursuant to, and in accordance with the conditions of, other applicable exemption provisions of the Act. The Funds are not allowed to be offered to retail investors. Any written material issued in connection with the offer is not a prospectus as defined in the Securities and Futures Act (Chapter 289) of Singapore and, accordingly, statutory liability under the Act in relation to the content of prospectuses would not apply.