Aviva fund outperforms rival GARS three years since launch


Aviva Investors Multi-Strategy Target Return fund has outperformed its rival GARS three years after its launch and fund manager Euan Munro’s defection from Standard Life Investors.

The Aviva Investors product has returned 9.9 per cent over three years compared to 5.6 per cent for SLI GARS, FE data shows.

However, while it has outperformed GARS, which was launched under Munro, over its lifetime, in the last six months it has delivered just 0.9 per cent, compared to GARS’ 2.2 per cent and 2.5 per cent in the Targeted Absolute Return sector.

The Multi-Strategy Target Return fund, which now has £5.1bn in assets, reached its three-year track record on 1 July.

The Adviser Centre announced today it has added the fund to its ‘recommended list’ arguing it has been tested through a variety of market conditions.

“In particular, it has shown resilience during periods of stress for risk assets, underlining its capital preservation attributes,” says Adviser Centre research director Gill Hutchinson.

Munro joined Aviva investors as chief executive and strategic adviser for the multi-strategy portfolios in 2013.

SLI this week revealed in its half yearly results that GARS had suffered £5.6bn net outflows.

Munro told Fund Strategy earlier this year that despite a recent “tricky market” flows had been “brilliant”.

Under lead managers, Peter Fitzgerald, Dan James, Brendan Walsh and Ian Pizer the funds aims to generate a gross return of the UK base rate + 5 per cent annually, over a three-year timeframe.

Nearly a third of Aviva’s £320bn under management is in its multi-asset funds.

Aviva Inv Multi Strategy Target Return vs SLI Global Absolute Return Strategies

6m 1yr 3yr
Aviva Inv Multi Strategy Target Return 0.9 1.4 9.9
SLI Global Absolute Return Strategies 2.2 2.6 5.6
IA Targeted Absolute Return 2.5 3.5 9.0