Aviva Investors is adding a fixed income fund to the Aviva Investors Multi-Strategy (AIMS) range.
Targeting an annual return of 3 per cent gross above cash over rolling three-year periods, the fund will focus on absolute risk-adjusted returns rather than a benchmark-relative approach.
The unconstrained fund will invest in 25 to 35 strategies in three categories: market strategies, opportunistic strategies and risk-reducing strategies, and will have the scope to use derivatives.
The fund will be managed by: Dan James, global head of fixed income; James McAlevey, senior portfolio manager; Orla Garvey, senior portfolio manager and Joubeen Hurren, portfolio manager.
Euan Munro, chief executive, Aviva Investors, says: “We continue to see strong demand for solutions that deliver the outcomes that matter most to clients, which is reflected by the positive inflows to our AIMS Target Return and Target Income funds this year. The launch of AIMS Fixed Income reflects a natural evolution of the range and offers investors liquid and cost-effective access to the full fixed income universe in one strategy.”
Dan James adds: “Falling interest rates over the last 25 years have created a tailwind for fixed income returns, which is unlikely to be repeated over the next five or 10 years. By taking an unconstrained approach and investing in a diversified portfolio, the AIMS Fixed Income fund has the flexibility to ensure risk is adequately rewarded by an appropriate return.”
Access to the fund will initially be through three institutional share classes, including a sterling hedged share class, with an AMC of 0.35 per cent.