Key benefits

Smoother returns, preserving capital and managing volatility

The AIMS Target Return Strategy 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 strategy aims to be less than half as volatile as an investment in global equities over any three-year period.

Risk-diversified portfolio

By focusing on diversifying portfolio risk rather than asset allocation, we aim to provide investors in the strategy 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 strategy aims to help investors diversify their portfolios with an approach that targets a specific level of return with little correlation to equities, bonds and other traditional asset classes.

Key risks

No guarantee

The aim of the strategy is not guaranteed and clients may get back less than the original amount invested.

Investment time horizon consideration

The strategy may not be appropriate for those who plan to withdraw their money within five years.

Market fluctuations

The value of the strategy 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.

Derivative risk

The strategy 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 strategy’s assets.

Exchange rate fluctuations

The stratgy may invest outside of the US or hold currencies other than US dollar. So, the value of investments may fall or rise depending on changes in the exchange rates of currencies to which the strategy is exposed.

Important information

For professional clients only. Not to be distributed to or relied on by retail clients.

Past performance is no guarantee of future results. The value of an investment and any income from it can go down as well as up and outcomes are not guaranteed. Investors may receive less than the original amount invested.