Aviva Investors has launched a multi-asset fund to deliver long-term sustainable income for people planning retirement.
The Aviva Investors Sustainable Income and Growth Fund is a global, bottom-up vehicle. It aims to provide 5 per cent natural income with long-term capital growth from a portfolio of between 80 and 120 securities drawn from over 25,000 names in the MSCI All Country World Index and the Bloomberg Barclays Global Aggregate Bond Index.
It will be managed by Francois de Bruin, who will lead an investment team seeking to improve the sustainability of holdings through engagement and proxy voting. He is supported at the fund by a core group which includes Mirza Baig, Head of Governance, Anton Kerkenezov, Emerging Market Debt Fund Manager, and Cyril Martin, Head of Aviva Insurance Solutions. Alongside this main set, Mikhail Zverev, Head of Global Equities, Richard Saldanha, Global Equity Income Fund Manager, Alistair Way, Head of Emerging Markets Equities, Jonathan Toub, Emerging Market Equity Income Fund Manager, Kevin Matthews, Head of Global High Yield, and Sunita Kara, Global High-Yield Fund Manager, will also provide expertise to the fund.
Francois De Bruin, Fund Manager, Aviva Investors Sustainable Income and Growth, reiterated the importance of sustainability to the fund.
He said: “Companies will be selected on the basis of sustainable business models and underlying revenue streams, with an emphasis on cash flows to deliver compounding interest over time. By focusing on assets likely to generate dividends and coupons during draw down, rather than selling shares for income, the fund will help mitigate the risk of permanent loss of capital when markets are depressed.”
TJ Voskamp, Global Head of Wholesale, Aviva Investors, commented on the results from conversations with clients, and said: “In our discussions with clients, there are two themes that always inform the conversation: the need for sustainable income that can be delivered smoothly over the long-term and investing with a responsible focus. This new fund looks to achieve both and draws on the combined experience of cross-asset investment professionals.”
Aviva Investors is the global asset management arm of insurance behemoth Aviva. It operates in 14 countries in Asia Pacific, Europe, North America and the United Kingdom with assets under management of £331 billion.
