Aviva Investors Multi-Strategy Target Return Fund

About this Fund

Fund Detail

PDS https://informedinvestor.com.au/view/pds/100410-2022-07-05-02:19.pdf
FUND MANAGER Aviva Investors Pacific
ASX Code
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).
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.

Risk control

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:

  • one month holding period;
  • 99% confidence levels; and
  • stress testing, as and when appropriate.

Investment reporting

The Fund provides you with comprehensive investment reporting, including:

  • online access to all the information on your investment; and
  • regular investment statements and an annual tax statement to keep you up to date on your investment.

Investor suitability

An investment in the fund may be suitable for investors who:

  • Wish to invest in a fund that seeks to deliver the same return as long-term investment within equities but with significantly lower expected volatility than investing in the underlying asset.
  • Are looking for an investment to form the core element of their portfolio or for a fund to diversify their existing portfolio.
  • Wish to invest in an outcome orientated fund that can provide exposure across and within many asset classes, but with little correlation with equities, bonds and other traditional asset classes.
  • Are willing to accept that the fund's aims are not guaranteed and so their capital is at risk and the return target may not be achieved.
  • Are aiming to invest for at least 5 years.
  • Are willing to accept that the Underlying Fund in which the Fund invests uses advanced investment techniques such as derivatives, and that the Fund will be exposed to risks associated with these techniques and instruments.




Key Features

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:

  • grow capital;
  • receive an income;
  • beat inflation; and
  • outperform plan liabilities.

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 average investor has a short time horizon, which means that markets show significant inefficiency and cyclicality over longer three-year timeframes;
  • these long-term opportunities can be exploited by patient investors able to cope with short-term instability in markets.

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:

  • actively blend a global range of strategies to create a diversified fund; and
  • ensure that the right blend of strategies exists to help meet the Underlying Fund's risk and return targets.