Aviva Investors has launched the Aviva Investors Multi-Strategy Target Return fund, the first offering in its new outcome-oriented fund range.
The fund is managed by head of multi-asset Peter Fitzgerald and global head of rates Dan James, with extensive input from a company-wide strategic investment group chaired by chief executive Euan Munro.
The fund will target annual returns of cash plus 5 per cent over rolling three-year periods with half the volatility of global equities, represented by the MSCI All Country World Index. It has been launched with £100m of commitments from other Aviva Investors funds and will have an ongoing charge capped at 0.85 per cent.
Aviva Investors Multi-Strategy Target Return will compete in the same space as the behemoth Standard Life Investments Global Absolute Return Strategies fund, which Munro was instrumental in setting up. Other groups such as Invesco Perpetual have recently unveiled their own rivals to the SLI offering.
Its portfolio will target three types of return: market returns, coming from traditional assets like equities and bonds; opportunistic returns, driven by market anomalies; and risk-reducing returns, intended to make gains in hostile market conditions.