Aviva Investors launches multi-strategy fixed income fund

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Aviva Investors, the global asset management business of Aviva, is expanding the Aviva Investors Multi-Strategy (AIMS) range with the launch of the AIMS Fixed Income Fund.

The fund invests in the entire fixed income universe and aims to achieve a 3% per annum gross return over cash, represented by the ECB Base Rate (or equivalent), over rolling three-year periods.

The AIMS Fixed Income Fund will build portfolios with a particular focus on absolute risk-adjusted returns rather than a benchmark-relative approach. The managers will broaden the opportunity set through the use of derivatives.

It will invest in a diversified portfolio of 25 to 35 strategies, split into three categories: market strategies, opportunistic strategies and risk-reducing strategies.

The fund is managed by Dan James, global head of Fixed Income; James McAlevey, senior portfolio manager; Orla Garvey, senior portfolio manager; and Joubeen Hurren, portfolio manager; with further support from the Global Fixed Income Team and the full investment resources of Aviva Investors.

Euan Munro, CEO of Aviva Investors, said: “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, co-manager and global head of Fixed Income at Aviva Investors, said: “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.”

The fund will initially be available in three institutional share class formats: EUR, GBP (hedged) and USD (hedged) versions.