Explaining this decision, a spokesperson said the firm is undergoing changes to its distribution model in the Asia-Pacific to support its growth initiatives in the region, which will entail centralising distribution in its Singapore office around three key channels – insurance solutions, institutional and global wealth.
“The introduction of this new model is in response to growing demand from investors for increased asset class specialisation, creating comprehensive and consistent coverage for Aviva Investors clients across all Asia-Pacific markets,” the spokesperson told InvestorDaily.
“As a result of these changes, Aviva Investors will be exiting its domestic Australian retail fund distribution operation and realigning Australia and New Zealand distribution to Singapore, where we will continue to provide coverage to the important local institutional markets, with a focus on expanding our offshore fund strategies and segregated mandates.”
The announcement was confirmed by Perpetual’s The Trust Company, which last week revealed that, as the responsible entity of the Aviva Investors Multi-Strategy (AIMS) Target Return Fund, it had terminated the fund on 12 June.
According to Perpetual, Aviva’s decision to exit the Australian retail market was a consideration in AIMS’ closure.
Perpetual earlier revealed that AIMS had not met its long-term performance objective, which was to achieve a 5 per cent per annum gross return above the Reserve Bank’s cash rate – or equivalent – over a three-year rolling period regardless of market conditions.
“The investment manager has not raised sufficient assets to make the fund viable, particularly in terms of investment and operating cost efficiencies. In addition, there has been a significant redemption which has dramatically reduced the size of the fund and therefore further affected its viability,” Perpetual said.
“As a result, both Perpetual and the investment manager are of the view that the fund’s purpose can no longer be accomplished, and Perpetual has determined that it is in the best interests of all investors to terminate and wind-up the fund.”
Moreover, it confirmed that it will seek to sell or realise the assets of the fund later in the month.
At 31 May 2024, AIMS had $153.87 million in assets under management and was run by Aviva chief investment officer, multi-asset and macro, Peter Fitzgerald, and head of multi-strategy funds and portfolio manager Ian Pizer.
