Aviva Investors has extended its multi-strategy range by making a new fund available to Australian investors.
The Aviva Investors Multi-Strategy (AIMS) Fund utilises global fixed income to deliver growth for clients with an aim of 3 per cent per annum gross return over a three-year period, according to a statement by Aviva.
The fund has a focus of absolute risk-adjusted returns over a benchmark-relative approach, and invests in a portfolio spanning 25 to 35 strategies sorted into three categories: “market strategies, opportunistic strategies and risk-reducing strategies,” the statement said.
Commenting on the launch, Aviva Investors co-manager and global head of fixed income Dan James said the fund had the “flexibility” to “adequately reward” risk.
“Recent volatility supports the need for unconstrained approaches that can achieve their investment objectives regardless of the market conditions,” he said.
Aviva Investors’ Australia managing director Brett Jackson added the firm had had a positive response from the Australian market.
“While fixed income funds are generally based on two risk factors, duration and spread, our fund is uniquely positioned, relying on six risk factors: duration, spread, curve, volatility, currency and inflation,” Mr Jackson said.
He added that companies that manufacture weapons, tobacco products or are damaging to the environment were excluded from the fund.
“There are very few absolute return bond funds that have these exclusions, but I believe there will be more demand for them in future.”
The fund will be managed by Mr James and senior portfolio managers James McAlevey, Orla Garvey and Joubeen Hurren.