Aviva Investors has launched two new global equity funds, which will invest in a concentrated, style-agnostic portfolio of global stocks to generate long-term returns.
Both funds will utilise fundamental analysis, and will be driven primarily by stock-specific factors affecting earnings, cash flow and associated risk.
Management of the two funds, the Aviva Investors Global Equity Unconstrained Fund and the Aviva Investors Global Emerging Market Equity Unconstrained Fund, will be bolstered by high levels of company contact and structured sector coverage across regions. Multi-asset, macro, credit and ESG information flows are also integrated into the funds’ stock selection process.
The Global Equity Unconstrained Fund is managed by Mikhail Zverev, head of global equities, with the support of the wider global equities team. The fund will invest in global stocks where the team has a high conviction and positive non-consensus view.
Commenting on the new fund Mr Zverev believed it would widen the investment options for stock-pickers and provide strong returns for its clients.
He said: “Global equities offer a vast and incredibly diverse set of opportunities for stock-pickers. This new fund will invest in companies where we believe the changing fundamentals of the business are mispriced and can offer strong return potential for our clients. Due to our belief that market inefficiency is not confined to one particular investment style, we will look for ideas across style categories and through thorough and collaborative research, will pursue opportunities wherever they take us.”
The Global Emerging Market Equity Unconstrained Fund is managed by Alistair Way, head of emerging market equities, alongside the wider emerging market equities team. It will seek to generate consistent long-term returns by to utilising the unique blend of opportunities the company believes exist across emerging markets.
Mr Way considered the current investment climate to be highly useful to the fund’s strategy, pointing to the opportunities presented by mis-pricing and the investor appetite for diversified portfolios.
He said: “We believe that emerging markets offer a dynamic range of investment opportunities at the company level, with structural change and the emergence of new sectors giving great potential for well positioned companies. At the same time equity market inefficiencies give us significant scope to exploit mis-pricing; we look for ideas across a broad universe without being constrained by style bias. Through a forward-looking and globally-connected approach, we will look to give investors exposure to what we see as the best opportunities through a diversified portfolio.”
David Cumming, CIO, equities, also spoke positively about the launch, feeling it enhanced the credibility of the company’s investment teams.
He added: “The launch of these funds is part of the continual evolution and strengthening of our equity proposition and investment team. These new style-agnostic high active share strategies are complementary to other global and emerging market equity funds we offer clients and draw on the expertise of a highly experienced and effectively connected investment team and research base.”
