More bang for your buck: how value is changing in multi-asset strategies

by | Sep 26, 2022

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For professional advisers only

In a world of high inflation, every penny counts. That’s why value for money is the key pillar of the Aviva Investors Multi-asset Core Fund range.

Perceptions of value are constantly changing in the investment industry, which has undergone seismic changes over the last decade so that advisers and their clients get better value for money.

Not before time, asset managers have had to up their game. Take our multi-asset offering. We pride ourselves on our track record in this area – we’ve been managing multi-asset portfolios for over four decades, drawing on the expertise and perspectives of investment professionals across geographies and asset classes, and currently run around £98 billion in portfolios for Aviva and our external clients.

Many investors are price sensitive. They still want risk profiling, diversified exposure in terms of geographies and asset classes, and the prospect of competitive returns, but want to keep charges down.

This led us to introduce a new range of multi-asset funds in November 2020 – MAF Core. The five funds in the MAF Core range benefit from risk profiling, a global asset allocation approach (including the opportunity to get exposure to markets like global high yield and emerging-market debt), growth and defensive assets.

Furthermore, MAF Core applies an ESG overlay when investing in developed-market equities and sovereign bonds by tilting the benchmark index towards better-scoring[i] ESG companies and countries, while maintaining a similar risk-return profile to the index.

MAF Core uses passive building blocks to keep charges down, with the ongoing charges figure capped at what we believe is a highly competitive 0.15 per cent a year.

Understanding investors want clarity on the potential performance they can expect as well as on charges, we also introduced a performance objective for MAF Core of 0.3 per cent of additional returns over its benchmark (annually, measured over three-year rolling periods) as well as different volatility risk targets. Setting targets makes us fully accountable for delivering the outcomes our investors expect.

Advisers and their clients also want timely and engaging content that goes beyond what they read on a fact sheet. That’s why we also produce a range of support materials – from our weekly Ask the Fund Manager video series to updates on the economic and investment environment, and from educational webinars to stories on ESG.

Retail investors have more investment options and information about how these stack up on costs, performance and ESG than ever before. Value-for-money is non-negotiable, which is exactly what we are trying to give them with our MAF Core range. And, as the market and the needs of our customers evolve, managers like us must be prepared to evolve with them.

To find out more about Aviva’s MAF Core range, click here

 

[i] benchmark is MSCI® World Index and Bloomberg® Global Aggregate Treasuries Index.  Score used is based on our proprietary modelling based on third-party data inputs, including MSCI’s ESG scores.

Key Risks:

The value of an investment and any income from it can go down as well as up and can fluctuate in response to changes in currency and exchange rates.

Investors may not get back the original amount invested.

The Fund uses derivatives, these can be complex and highly volatile. This means in unusual market conditions the Fund may suffer significant losses.

The Fund Invests in emerging markets, these markets may be volatile and carry higher risk than developed markets.

Important Information

Except where stated as otherwise, the source of all information is Aviva Investors Global Services Limited (“Aviva Investors”). Unless stated otherwise any opinions expressed are those of Aviva Investors. They should not be viewed as indicating any guarantee of return from an investment managed by Aviva Investors nor as advice of any nature. The value of an investment and any income from it can go down as well as up. Investors may not get back the original amount invested.

The Aviva Investors Multi‐asset Funds comprise two ranges, each with five funds (together the “Funds”):Aviva Investors Multi-asset Plus Fund range comprises the Aviva Investors Multi‐asset Plus Fund I (“MAF Plus I”), the Aviva Investors Multi‐asset Fund Plus II (“MAF Plus II”), the Aviva Investors Multi‐asset Plus Fund III (“MAF Plus III”), the Aviva Investors Multi‐asset Plus Fund IV (“MAF Plus IV”) and the Aviva Investors Multi‐asset Plus Fund V (“MAF Plus V”) Aviva Investors Multi-asset Core Fund range comprises the Aviva Investors Multi‐asset Core Fund I (“MAF Core I”), the Aviva Investors Multi‐asset Fund Core II (“MAF Core II”), the Aviva Investors Multi‐asset Core Fund III (“MAF Core III”), the Aviva Investors Multi‐asset Core Fund IV (“MAF Core IV”) and the Aviva Investors Multi‐asset Core Fund V (“MAF Core V”)

The Funds are sub-funds of the Aviva Investors Portfolio Funds ICVC. For further information please read the latest Key Investor Information Document and Supplementary Information Document. The Prospectus and the annual and interim reports are also available on request. Copies in English can be obtained free of charge from Aviva Investors UK Fund Services Limited, St Helen’s, 1 Undershaft, London EC3P 3DQ. You can also download copies from our website. Issued by Aviva Investors UK Fund Services Limited. Registered in England No 1973412. Authorised and regulated by the Financial Conduct Authority. Firm Reference No. 119310. Registered address: St.Helen’s, 1 Undershaft, London, EC3P 3DQ. An Aviva company.

343200 31/08/2023

 

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