Aviva Investors rolls out AIMS income fund

Aviva Investors has unveiled the Aviva Investors Multi-Strategy Target Income fund, the second in its AIMS absolute return range.

The new fund was expected to launch before Christmas and accompanies the AIMS Target Return fund that has been running since July.

The new income fund will levy an entry charge of up to 1 per cent on execution-only retail investors. That will be waived for those buying through an adviser.

The retail ongoing charge figure is 1.1 per cent.

Institutional has no entry charge with an OCF of 85 basis points.

Set up by Aviva Investors chief executive and former manager of the £22.6bn Standard Life Global Absolute Return Strategies fund Euan Munro, the fund aims to use Aviva’s sprawling investment resources to feed a best ideas approach.

Multi-asset head Peter Fitzgerald and managers Nick Samouilhan and Brendan Walsh will run the fund.

Former SLI GARS fixed income specialist Ian Pizer is expected to manage the fund as well, although his appointment is subject to regulatory approval.

The AIMS Target Income fund pursues a 4 per cent annual return above the Bank of England rate before corporate tax.

It will also target volatility half that of global equities over any three-year period.

Munro says freedom of choice will be “crucial” next year and the firm produced the AIMS funds to meet demand.

“We have found they are increasingly looking for outcome-focused investments, dictated by their financial needs rather than a benchmark,” he explains. 

“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.”