Aviva Investors Multi-Strategy Target Return Fund
About this Fund
|FUND MANAGER||Aviva Investors Pacific|
|INVESTMENT STYLE||The Fund invests mainly in equities, bonds, money market instruments and bank deposits from anywhere in the world.|
|INVESTMENT PROFILE||The objective of the Fund is to achieve a 5% per annum gross return above the Benchmark over a 3-year rolling period, regardless of market conditions (absolute return).|
|CURRENCY MANAGEMENT||Active management|
|BENCHMARK||RBA Cash Rate|
|FUND SIZE||RBA Cash Rate|
|NO. OF HOLDINGS|
|FEES||0.95% per annum of the Net Asset Value of the Fund|
Benefits of investing in the Aviva Investors Multi-Strategy Target Return Fund
Access to Underlying Fund
The Fund provides you with the opportunity to access the Underlying Fund through an Australian-domiciled managed investment scheme.
Management expertise and research capabilities
By investing in the Fund, you can gain access to the management expertise and research capabilities of the Fund Investment Manager and the Underlying Fund Investment Manager. The expertise and experience of the key personnel of each is set out in Section 6 of the PDS.
Access to investment opportunities and overseas markets
A managed fund product such as the Fund pools your money with that of other investors. This allows you to benefit from the Fund's (and the Underlying Fund's) ability to invest in a diversified portfolio of investment opportunities.
The Underlying Fund Investment Manager continually monitors risk and is conscious of preserving investor capital. Continuous monitoring of the Underlying Fund's investments guides the investment mix and allows it to act quickly should the investment case alter.
A VaR report will be produced and monitored on a daily basis for the Underlying Fund on the following criteria:
The Fund provides you with comprehensive investment reporting, including:
An investment in the fund may be suitable for investors who:
About the Fund
The AIMS Target Return Fund is a multi-strategy portfolio targeting an annual return of cash plus five per cent per annum above the Central Bank base rate over a rolling three-year period (gross of fees), with less than half the volatility of global equities.
It seeks to deliver returns that are uncorrelated to other asset classes, acting as a diversifier within investors' broader portfolios and providing some protection against the impact of equity market volatility.
Objectives and Investment policy
The objective of the Fund is to achieve a 5% per annum gross return above the European Central Bank base rate (or equivalent) over a 3-year rolling period, regardless of market conditions (absolute return).
The Fund invests mainly in equities, bonds, money market instruments and bank deposits from anywhere in the world.
The Fund may also invest in regulated Funds. The Fund makes extensive use of derivatives for investment purposes.
The Investment Manager actively makes the investment selection decisions for the Fund.
For full investment objectives and policy details please refer to the Prospectus.
How we invest your money
Investment strategy and guidelines
Other than a small amount of cash or cash equivalents held in the Fund for operational purposes, the Fund currently intends to invest only in shares of the Underlying Fund.
Accordingly, the performance of the Fund is almost wholly dependent on the performance of the Underlying Fund and the Underlying Fund Investment Manager's expertise in allocating the assets of the Underlying Fund.
About the Underlying Fund
The Underlying Fund is a Sub-Fund of Aviva Investors SICAV, an open-ended investment company incorporated in Luxembourg, managed by AIGSL. A copy of the prospectus of Aviva Investors SICAV which describes the Underlying Fund is available at www.avivainvestors.com.au.
Aviva Investors Multi-Strategy (AIMS) is a range of outcome- orientated funds designed to address key concerns frequently articulated by customers of Aviva Investors. These concerns are to:
AIGSL launched the Underlying Fund as the first fund in the range on 1 July 2014. The Underlying Fund aims to achieve capital growth throughout the investment cycle.
Seeking consistently good returns in different economic environments requires the active deployment of investment risk. The Underlying Fund seeks to utilise investment risk in order to deliver positive returns across all market conditions. Successfully undertaking a sophisticated application of the risk budget can give investors the potential for a more favourable balance between risk and return than traditional assets such as equities, particularly with lower volatility.
AIGSL believes that:
The Underlying Fund aims to achieve positive performance in all market conditions by combining investments in multiple long-term strategies, acknowledging that the short-term performance of any single strategy can vary. AIGSL believes that while any one strategy may underperform, other strategies can be expected to perform well. As a result, the Underlying Fund aims to provide stability and strong return potential for investors through intelligent deployment of the risk budget and a robust portfolio construction which matches multiple strategies together.
The Underlying Fund invests in a diverse range of investment opportunities, principally targeting the spectrum of traditional asset classes. Strategies are chosen specifically to aim to work well together, in positive and negative markets and to achieve diversification and reduce risk. Unlike most traditional asset class funds whose performance is measured against an index, the Underlying Fund is measured against the return of cash.
The core philosophy behind the AIMS range of funds is to address the needs of different investor types and provide positive returns irrespective market conditions.
To achieve this objective, AIGSL has appointed fund managers and risks specialists with complementary areas of expertise to work closely together to: