AVIVA INVESTORS PORTFOLIO FUNDS ICVC

Transcription

1 AVIVA INVESTORS PORTFOLIO FUNDS ICVC SHORT REPORT For the year ended 28 February 2015

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3 Contents Aviva Investors Multi-Manager Flexible Fund 2 Aviva Investors Multi-Manager 40-85% Shares Fund 8 Aviva Investors Multi-Manager 20-60% Shares Fund 16 Aviva Investors Multi-asset Fund I 24 Aviva Investors Multi-asset Fund II 30 Aviva Investors Multi-asset Fund III 36 Aviva Investors Multi-asset Fund IV 42 Aviva Investors Multi-asset Fund V 48 Other Information 54 Company Information 55 Aviva Investors Portfolio Funds ICVC Short Report 1

4 AVIVA INVESTORS MULTI-MANAGER FLEXIBLE FUND Investment Objective The Fund aims to provide long-term capital growth by investing in other eligible Collective Investment Schemes (the Target Funds). Investment Policy Investment will be made in shares or units of the Target Funds, which invest in any geographical area or industry sector. Investments may also be made in derivatives for hedging purposes. The Fund will normally be invested in Target Funds whose objectives are equity investment. The Target Funds may however also invest in bonds, Property Securities, and money market instruments. Risk Profile The Fund invests in other collective investment schemes and exchange traded funds (ETFs) and by doing so assumes any specific risks associated with the schemes or funds. ETFs may have exposure to derivative instruments and therefore expose the Fund to counterparty default risk. The Fund has exposure to UK and overseas equities and fixed interest securities. Changes in exchange rates, interest rates and the credit ratings of companies issuing bonds may affect the performance of the Fund. The Fund has exposure to investments in countries deemed to be emerging markets that are usually considered to carry a greater degree of risk than investments in established markets. The solvency of organisations in which the Fund has exposure to can change and this can affect the Fund s capital. Fund Manager s Report The Fund (share class 1) returned per cent* as demand for riskier assets was buoyed by extremely loose monetary policy and steadily improving global and domestic economic data. The Fund s Investment Association peer group generated an average return of 8.57 per cent. Outperformance relative to the peer group was largely explained by the Fund having a sizeable overweight position in equities. Global equities advanced, with a number of major indices hitting record highs, boosted by loose monetary policy and strengthening economic data. US stocks surged as companies continued to grow profits and as domestic economic data continued to improve. Japanese shares also rose sharply as the government pledged to take steps to lift economic growth and as the country s pension fund said it would raise the amount of equities it holds. European markets climbed too as the European Central Bank announced the long-awaited introduction of quantitative easing. But while UK shares also climbed, steep falls in commodity prices meant a market which is laden with the shares of a large number of the world s biggest commodity producers underperformed most international peers. Gilts rallied sharply as plunging oil prices helped push UK inflation to its lowest in 15 years and as global government bond yields plunged after the European Central Bank said it would implement quantitative easing to boost economic growth. Corporate bonds generated positive returns as strong global economic data and loose monetary policy fuelled investors risk appetite, in turn causing credit spreads to tighten. 2 Aviva Investors Multi-Manager Flexible Fund

5 AVIVA INVESTORS MULTI-MANAGER FLEXIBLE FUND (CONTINUED) Fund Manager s Report (continued) Outlook We believe that the outlook for riskier asset classes, and equities in particular, is favourable given improving economic prospects in the developed world and the fact risk-free interest rates are likely to stay close to current historical lows for a while longer yet. Markets are nonetheless vulnerable to bouts of weakness with the first hike in US interest rates approaching. The Fund is overweight US equities as we believe a stronger dollar should help performance. We recently hedged half of the Fund s exposure to the euro, which stems from its positions in various European assets, as we believe the single currency has further to fall as the ECB continues to ease monetary policy April 2015 * Fund performance figures share class 1, source Lipper, net of fees, net income reinvested in GBP. Any opinions expressed are those of the fund manager. They should not be viewed as a guarantee of a return from an investment in the funds. The content of the commentary should not be viewed as a recommendation to invest nor buy or sell any securities. Past performance is not a guide to the future. The value of a fund and the income from it may go down as well as up, and the investor may not get back the original amount invested. Aviva Investors Multi-Manager Flexible Fund 3

6 AVIVA INVESTORS MULTI-MANAGER FLEXIBLE FUND (CONTINUED) Fund Facts Accounting dates Ex-dividend dates 28 February 29 February/ 1 March Distribution dates 30 April 31 August 1 September 31 October Ongoing Charges Figure* Share Class % 2.33% Share Class % 1.58% Share Class % 1.33% * The Ongoing Charges Figure (OCF) is calculated as the ratio of the total ongoing charges to the average net asset value of the Fund over the year. The OCF is made up of the Annual Management Charge and other operating costs deducted from the assets of the Fund during the year, except for those payments that are explicitly excluded (performance fees). The OCF includes transaction charges which were excluded from the Total Expense Ratio (TER) calculations provided previously. The OCF has replaced the TER. The OCF includes a synthetic element of 0.57% in respect of the underlying investments. Revenue Distributions Final distribution for the six months ended 28 February Pence per share payable Pence per share paid Share Class 1 (Acc) Share Class 2 (Acc) Share Class Total Return Fund 1 IA Flexible Investment 2 Share Class 1 (Acc) 11.66% 8.57% Share Class 2 (Acc) 12.50% 8.57% Share Class % 8.57% 1 Source: Aviva Investors (based on 9am values) year ended 28 February Source: Lipper (based on close of business values) year ended 28 February Synthetic Risk and Reward Indicator Lower risk Typically lower rewards Higher risk Typically higher rewards The Fund has been allocated a risk number based on the higher of the historic volatility of its share price, the historic volatility of its current asset classes or its intended maximum risk levels. This indicator is based on historical data, calculated using European Union rules, and may not be a reliable indication of the future risk profile of the Fund. The risk and reward category shown is not guaranteed to remain unchanged and may change over time. The lowest category does not mean risk free. Bond values are affected by changes in interest rates, and the bond issuer s creditworthiness. Bonds that produce a higher level of income usually have a greater risk of default. An investment in shares of other funds will assume any specific risks associated with those funds. Unregulated funds carry higher risk as they have less rules governing them. Full information on the risks applicable to the Fund is detailed in the Prospectus. Net Asset Value* Pence per share Pence per share Change Share Class 1 (Acc) % Share Class 2 (Acc) % Share Class % * Valued at bid market prices. 4 Aviva Investors Multi-Manager Flexible Fund

7 AVIVA INVESTORS MULTI-MANAGER FLEXIBLE FUND (CONTINUED) Top Ten Holdings BlackRock North American Equity Tracker Fund (L Acc) 24.74% Aviva Investors US Equity MoM 1 Fund 15.07% GLG Japan CoreAlpha Equity Fund (I H Acc) 10.12% BlackRock European Dynamic Fund (Acc) 6.96% Invesco Perpetual European Equity Income Fund (Acc No Trail) 6.70% Odey European Fund (B Inc) 6.29% Artemis Income Fund (Inc) 6.13% Aviva Investors UK Equity MoM 3 Fund 5.32% First State Asia Pacific Leaders Fund (B Acc) 4.59% GVO UK Focus Fund (I Inc) 4.12% BlackRock North American Equity Tracker Fund (L Acc) 20.45% AXA Framlington UK Select Opportunities Fund (R Acc) 9.08% Aviva Investors UK Equity MoM 3 Fund 8.34% Artemis Income Fund (Inc) 8.15% GLG Japan CoreAlpha Equity Fund (I H Acc) 8.07% BlackRock European Dynamic Fund (D Acc) 6.68% Odey European Fund (B Inc) 6.11% Baring Europe Select Trust Fund (I Inc) 5.17% GVO UK Focus Fund (I Inc) 5.15% First State Asia Pacific Leaders Fund (B Acc) 3.68% Portfolio Breakdown North America 37.17% 18.76% Developed Europe Excl UK 15.04% 20.20% UK 13.88% 20.73% Japan 10.21% 7.48% Emerging Asia 6.30% 6.73% Managed Fund 6.28% 4.85% Developed Asia 3.04% 2.06% Cash and Equivalents 2.16% 8.28% Property 1.68% 0.83% Australia & New Zealand 0.74% 0.54% Other Sectors 0.40% 2.34% Total Investments 96.90% 92.80% Net Other Assets 3.10% 7.20% Net Assets % % The above portfolio breakdown details the geographical exposure of the underlying portfolio of the Collective Investment Scheme (CIS) that the Fund is invested in as opposed to the domicile of the CIS. Aviva Investors Multi-Manager Flexible Fund 5

8 AVIVA INVESTORS MULTI-MANAGER FLEXIBLE FUND (CONTINUED) Share Price Record Share class Calendar year Highest price* (p) Lowest price* (p) Class 1 (Acc) ** Class 2 (Acc) ** Class * Valued at mid market prices. ** Up to 28 February ** Revenue Record The revenue record table below shows the net distribution rates per calendar year on a payment date basis for an investment made on 4 January Share class Calendar year Net revenue per share (p) Per 1,000 invested ( ) Class 1 (Acc) * Class 2 (Acc) * Class * * Up to 30 April 2015 (the final distribution payment date). 6 Aviva Investors Multi-Manager Flexible Fund

9 AVIVA INVESTORS MULTI-MANAGER FLEXIBLE FUND (CONTINUED) Calendar Year Performance Total Return Fund 3 % IA Flexible Investment 4 % 2010 Share Class 1 (Acc) Share Class 2 (Acc) Share Class Share Class 1 (Acc) (9.36) (8.45) Share Class 2 (Acc) (8.68) (8.45) Share Class 3 (8.50) (8.45) 2012 Share Class 1 (Acc) Share Class 2 (Acc) Share Class Share Class 1 (Acc) Share Class 2 (Acc) Share Class Share Class 1 (Acc) Share Class 2 (Acc) Share Class * Share Class 1 (Acc) Share Class 2 (Acc) Share Class The value of an investment in the Aviva Investors Multi-Manager Flexible Fund and any revenue from it can go down as well as up. You may not get back the original amount invested. Past performance is not a guide to future performance. 3 Source: Aviva Investors (based on 9am values). 4 Source: Lipper (based on close of business values). * Up to 28 February Aviva Investors Multi-Manager Flexible Fund 7

10 AVIVA INVESTORS MULTI-MANAGER 40-85% SHARES FUND Investment Objective The Fund aims to provide long-term capital growth together with income by investing in other eligible Collective Investment Schemes (the Target Funds). Investment Policy Investment will be made in shares or units of the Target Funds, which invest in any geographical area or industry sector. Investments may also be made in derivatives for hedging purposes. Although the Target Funds may invest in equities, bonds, Property Securities, or money market instruments, it is anticipated that up to 85% of the Fund will be invested in Target Funds whose objectives are equity investment. Risk Profile The Fund invests in other collective investment schemes and exchange traded funds (ETFs) and by doing so assumes any specific risks associated with the schemes or funds. ETFs may have exposure to derivative instruments and therefore expose the Fund to counterparty default risk. The Fund has exposure to UK and overseas equities and fixed interest securities. Changes in exchange rates, interest rates and the credit ratings of companies issuing bonds may affect the performance of the Fund. The Fund has exposure to investments in countries deemed to be emerging markets that are usually considered to carry a greater degree of risk than investments in established markets. The solvency of organisations in which the Fund has exposure to can change and this can affect the Fund s capital. Fund Manager s Report The Fund (share class 1) returned 8.77 per cent* over the review period as demand for riskier assets was buoyed by extremely loose monetary policy and steadily improving global and domestic economic data. The Fund s Investment Association peer group generated an average return of 8.01 per cent. Outperformance relative to the peer group was largely explained by the Fund having a sizeable overweight position in equities. Global equities advanced, with a number of major indices hitting record highs, boosted by loose monetary policy and strengthening economic data. US stocks surged as companies continued to grow profits and as domestic economic data continued to improve. Japanese shares also rose sharply as the government pledged to take steps to lift economic growth and as the country s pension fund said it would raise the amount of equities it holds. European markets climbed too as the European Central Bank announced the long-awaited introduction of quantitative easing. But while UK shares also climbed, steep falls in commodity prices meant a market which is laden with the shares of a large number of the world s biggest commodity producers underperformed most international peers. Gilts rallied sharply as plunging oil prices helped push UK inflation to its lowest in 15 years and as global government bond yields plunged after the European Central Bank said it would implement quantitative easing to boost economic growth. Corporate bonds generated positive returns as strong global economic data and loose monetary policy fuelled investors risk appetite, in turn causing credit spreads to tighten. 8 Aviva Investors Multi-Manager 40-85% Shares Fund

11 AVIVA INVESTORS MULTI-MANAGER 40-85% SHARES FUND (CONTINUED) Fund Manager s Report (continued) Outlook We believe that the outlook for riskier asset classes, and equities in particular, is favourable given improving economic prospects in the developed world and the fact risk-free interest rates are likely to stay close to current historical lows for a while longer yet. Markets are nonetheless vulnerable to bouts of weakness with the first hike in US interest rates approaching. The Fund is overweight US equities as we believe a stronger dollar should help performance. We recently hedged half of the Fund s exposure to the euro, which stems from its positions in various European assets, as we believe the single currency has further to fall as the ECB continues to ease monetary policy. April 2015 * Fund performance figures share class 1, source Lipper, net of fees, net income reinvested in GBP. Any opinions expressed are those of the fund manager. They should not be viewed as a guarantee of a return from an investment in the funds. The content of the commentary should not be viewed as a recommendation to invest nor buy or sell any securities. Past performance is not a guide to the future. The value of a fund and the income from it may go down as well as up, and the investor may not get back the original amount invested. Aviva Investors Multi-Manager 40-85% Shares Fund 9

12 AVIVA INVESTORS MULTI-MANAGER 40-85% SHARES FUND (CONTINUED) Fund Facts Accounting dates Ex-dividend dates 28 February 29 February/ 1 March Distribution dates 30 April 31 August 1 September 31 October Ongoing Charges Figure* Share Class % 2.32% Share Class % 1.57% Share Class % 1.32% * The Ongoing Charges Figure (OCF) is calculated as the ratio of the total ongoing charges to the average net asset value of the Fund over the year. The OCF is made up of the Annual Management Charge and other operating costs deducted from the assets of the Fund during the year, except for those payments that are explicitly excluded (performance fees). The OCF includes transaction charges which were excluded from the Total Expense Ratio (TER) calculations provided previously. The OCF has replaced the TER. The OCF includes a synthetic element of 0.57% in respect of the underlying investments. Net Asset Value Income Shares* Pence per share Pence per share Change Share Class % Share Class % Share Class % * Valued at bid market prices. Net Asset Value Accumulation Shares* Pence per share Pence per share Change Share Class % * Valued at bid market prices. Revenue Distributions Income Shares Final distribution for the six months ended 28 February Pence per share payable Pence per share paid Share Class Share Class Share Class Revenue Distributions Accumulation Shares Final distribution for the six months ended 28 February Pence per share payable Pence per share paid Share Class Aviva Investors Multi-Manager 40-85% Shares Fund

13 AVIVA INVESTORS MULTI-MANAGER 40-85% SHARES FUND (CONTINUED) Total Return Income Shares Fund 1 IA Mixed Investment 40-85% Shares 2 Share Class % 8.01% Share Class % 8.01% Share Class % 8.01% 1 Source: Aviva Investors (based on 9am values) year ended 28 February Source: Lipper (based on close of business values) year ended 28 February Total Return Accumulation Shares Fund 3 IA Mixed Investment 40-85% Shares 4 Share Class % 8.01% 3 Source: Aviva Investors (based on 9am values) year ended 28 February Source: Lipper (based on close of business values) year ended 28 February Synthetic Risk and Reward Indicator Lower risk Typically lower rewards Higher risk Typically higher rewards The Fund has been allocated a risk number based on the higher of the historic volatility of its share price, the historic volatility of its current asset classes or its intended maximum risk levels. This indicator is based on historical data, calculated using European Union rules, and may not be a reliable indication of the future risk profile of the Fund. The risk and reward category shown is not guaranteed to remain unchanged and may change over time. The lowest category does not mean risk free. Bond values are affected by changes in interest rates, and the bond issuer s creditworthiness. Bonds that produce a higher level of income usually have a greater risk of default. An investment in shares of other funds will assume any specific risks associated with those funds. Unregulated funds carry higher risk as they have less rules governing them. Full information on the risks applicable to the Fund is detailed in the Prospectus. Aviva Investors Multi-Manager 40-85% Shares Fund 11

14 AVIVA INVESTORS MULTI-MANAGER 40-85% SHARES FUND (CONTINUED) Top Ten Holdings BlackRock North American Equity Tracker Fund (L Acc) 24.78% BlackRock European Dynamic Fund (Acc) 8.68% Invesco Perpetual European Equity Income Fund (Acc No Trail) 8.38% Artemis Income Fund (Inc) 7.70% Aviva Investors UK Equity MoM 3 Fund 5.86% GLG Japan CoreAlpha Equity Fund (I H Acc) 5.83% Aviva Investors US Equity MoM 1 Fund 5.16% GVO UK Focus Fund (I Inc) 4.98% Odey European Fund (B Inc) 4.89% Aviva Investors Sterling Credit MoM 1 Fund 4.20% BlackRock North American Equity Tracker Fund (L Acc) 14.34% AXA Framlington UK Select Opportunities Fund (R Acc) 11.08% Aviva Investors UK Equity MoM 3 Fund 10.65% Artemis Income Fund (Inc) 9.33% Odey European Fund (B Inc) 6.25% GVO UK Focus Fund (I Inc) 6.24% BlackRock European Dynamic Fund (D Acc) 5.61% Baring Europe Select Trust Fund (I Inc) 5.15% GLG Japan CoreAlpha Equity Fund (I H Acc) 4.59% MW Developed Europe TOPS Fund (G) 3.17% Portfolio Breakdown North America 28.67% 17.37% Developed Europe Excl UK 23.75% 25.89% United Kingdom 20.09% 31.42% Managed Fund 6.88% 7.28% Japan 5.88% 4.52% Cash and Equivalents 4.64% 3.22% Emerging Asia 4.47% 4.88% Developed Asia 1.82% 1.33% Property 1.34% 0.82% Australia & New Zealand 0.45% 0.00% Other Sectors 0.59% 2.08% Total Investments 98.58% 98.81% Net Other Assets 1.42% 1.19% Net Assets % % The above portfolio breakdown details the geographical exposure of the underlying portfolio of the Collective Investment Scheme (CIS) that the Fund is invested in as opposed to the domicile of the CIS. 12 Aviva Investors Multi-Manager 40-85% Shares Fund

15 AVIVA INVESTORS MULTI-MANAGER 40-85% SHARES FUND (CONTINUED) Share Price Record Income Shares Share class Calendar year Highest price* (p) Lowest price* (p) Class *** Class ** *** Class *** Share Price Record Accumulation Shares Share class Calendar year Highest price* (p) Lowest price* (p) Class * Valued at mid market prices. ** Up to 28 February ** * Valued at mid market prices. ** From 1 October 2012 (date of launch). *** Up to 28 February Aviva Investors Multi-Manager 40-85% Shares Fund 13

16 AVIVA INVESTORS MULTI-MANAGER 40-85% SHARES FUND (CONTINUED) Revenue Record Income Shares The revenue record table below shows the net distribution rates per calendar year on a payment date basis for an investment made on 4 January 2010 (1 October 2012 for Share Class 2). Share class Calendar year Net revenue per share (p) Per 1,000 invested ( ) Class ** Class * N/A N/A ** Class ** Revenue Record Accumulation Shares The revenue record table below shows the net distribution rates per calendar year on a payment date basis for an investment made on 4 January Share class Calendar year Net revenue per share (p) Per 1,000 invested ( ) Class * * Up to 30 April 2015 (the final distribution payment date). * From 1 October 2012 (date of launch). ** Up to 30 April 2015 (the final distribution payment date). 14 Aviva Investors Multi-Manager 40-85% Shares Fund

17 AVIVA INVESTORS MULTI-MANAGER 40-85% SHARES FUND (CONTINUED) Calendar Year Performance Income Shares Total Return Fund 5 % IA Mixed Investment 40-85% Shares 6 % 2010 Share Class Share Class Share Class 1 (6.96) (5.57) Share Class 3 (6.22) (5.57) 2012 Share Class Share Class 2* Share Class Share Class Share Class Share Class Share Class Share Class Share Class ** Share Class Share Class Share Class Calendar Year Performance Accumulation Shares Total Return Fund 7 % IA Mixed Investment 40-85% Shares 8 % 2010 Share Class Share Class 2 (6.34) (5.57) 2012 Share Class Share Class Share Class * Share Class Source: Aviva Investors (based on 9am values). 8 Source: Lipper (based on close of business values). * Up to 28 February The value of an investment in the Aviva Investors Multi-Manager 40-85% Shares Fund and any revenue from it can go down as well as up. You may not get back the original amount invested. Past performance is not a guide to future performance. 5 Source: Aviva Investors (based on 9am values). 6 Source: Lipper (based on close of business values). * From 1 October 2012 (date of launch). ** Up to 28 February Aviva Investors Multi-Manager 40-85% Shares Fund 15

18 AVIVA INVESTORS MULTI-MANAGER 20-60% SHARES FUND Investment Objective The Fund aims to provide long-term capital growth and income by investing in other eligible Collective Investment Schemes (the Target Funds). Investment Policy Investment will be made in shares or units of the Target Funds, which invest in any geographical area or industry sector. Investments may also be made in derivatives for hedging purposes. Although the Target Funds may invest in equities, bonds, Property Securities, or money market instruments, it is anticipated that up to 60% of the Fund will be invested in Target Funds whose objectives are equity investment. Risk Profile The Fund invests in other collective investment schemes and exchange traded funds (ETFs) and by doing so assumes any specific risks associated with the schemes or funds. ETFs may have exposure to derivative instruments and therefore expose the Fund to counterparty default risk. The Fund has exposure to UK and overseas equities and fixed interest securities. Changes in exchange rates, interest rates and the credit ratings of companies issuing bonds may affect the performance of the Fund. The Fund has exposure to investments in countries deemed to be emerging markets that are usually considered to carry a greater degree of risk than investments in established markets. The solvency of organisations in which the Fund has exposure to can change and this can affect the Fund s capital. Fund Manager s Report The Fund (share class 1) returned 8.26 per cent* as demand for riskier assets was buoyed by extremely loose monetary policy and steadily improving global and domestic economic data. The Fund s Investment Association peer group generated an average return of 6.92 per cent. Outperformance relative to the peer group was largely explained by the Fund having a sizeable overweight position in equities. Global equities advanced, with a number of major indices hitting record highs, boosted by loose monetary policy and strengthening economic data. US stocks surged as companies continued to grow profits and as domestic economic data continued to improve. Japanese shares also rose sharply as the government pledged to take steps to lift economic growth and as the country s pension fund said it would raise the amount of equities it holds. European markets climbed too as the European Central Bank announced the long-awaited introduction of quantitative easing. But while UK shares also climbed, steep falls in commodity prices meant a market which is laden with the shares of a large number of the world s biggest commodity producers underperformed most international peers. Gilts rallied sharply as plunging oil prices helped push UK inflation to its lowest in 15 years and as global government bond yields plunged after the European Central Bank said it would implement quantitative easing to boost economic growth. Corporate bonds generated positive returns as strong global economic data and loose monetary policy fuelled investors risk appetite, in turn causing credit spreads to tighten 16 Aviva Investors Multi-Manager 20-60% Shares Fund

19 AVIVA INVESTORS MULTI-MANAGER 20-60% SHARES FUND (CONTINUED) Fund Manager s Report (continued) Outlook We believe that the outlook for riskier asset classes, and equities in particular, is favourable given improving economic prospects in the developed world and the fact risk-free interest rates are likely to stay close to current historical lows for a while longer yet. Markets are nonetheless vulnerable to bouts of weakness with the first hike in US interest rates approaching. The Fund is overweight US equities as we believe a stronger dollar should help performance. We recently hedged half of the Fund s exposure to the euro, which stems from its positions in various European assets, as we believe the single currency has further to fall as the ECB continues to ease monetary policy. April 2015 * Fund performance figures share class 1, source Lipper, net of fees, net income reinvested in GBP. Any opinions expressed are those of the fund manager. They should not be viewed as a guarantee of a return from an investment in the funds. The content of the commentary should not be viewed as a recommendation to invest nor buy or sell any securities. Past performance is not a guide to the future. The value of a fund and the income from it may go down as well as up, and the investor may not get back the original amount invested. Aviva Investors Multi-Manager 20-60% Shares Fund 17

20 AVIVA INVESTORS MULTI-MANAGER 20-60% SHARES FUND (CONTINUED) Fund Facts Accounting dates Ex-dividend dates 28 February 29 February/ 1 March Distribution dates 30 April 31 August 1 September 31 October Ongoing Charges Figure* Share Class % 2.24% Share Class % 1.49% Share Class % 1.24% * The Ongoing Charges Figure (OCF) is calculated as the ratio of the total ongoing charges to the average net asset value of the Fund over the year. The OCF is made up of the Annual Management Charge and other operating costs deducted from the assets of the Fund during the year, except for those payments that are explicitly excluded (performance fees). The OCF includes transaction charges which were excluded from the Total Expense Ratio (TER) calculations provided previously. The OCF has replaced the TER. The OCF includes a synthetic element of 0.57% in respect of the underlying investments. Net Asset Value Income Shares* Pence per share Pence per share Change Share Class % Share Class % Share Class % * Valued at bid market prices. Net Asset Value Accumulation Shares* Pence per share Pence per share Change Share Class % * Valued at bid market prices. Revenue Distributions Income Shares Final distribution for the six months ended 28 February Pence per share payable Pence per share paid Share Class Share Class Share Class Revenue Distributions Accumulation Shares Final distribution for the six months ended 28 February Pence per share payable Pence per share paid Share Class Aviva Investors Multi-Manager 20-60% Shares Fund

21 AVIVA INVESTORS MULTI-MANAGER 20-60% SHARES FUND (CONTINUED) Total Return Income Shares Fund 1 IA Mixed Investment 20-60% Shares 2 Share Class % 6.92% Share Class % 6.92% Share Class % 6.92% 1 Source: Aviva Investors (based on 9am values) year ended 28 February Source: Lipper (based on close of business values) year ended 28 February Total Return Accumulation Shares Fund 3 IA Mixed Investment 20-60% Shares 4 Share Class % 6.92% 3 Source: Aviva Investors (based on 9am values) year ended 28 February Source: Lipper (based on close of business values) year ended 28 February Synthetic Risk and Reward Indicator Lower risk Typically lower rewards Higher risk Typically higher rewards The Fund has been allocated a risk number based on the higher of the historic volatility of its share price, the historic volatility of its current asset classes or its intended maximum risk levels. This indicator is based on historical data, calculated using European Union rules, and may not be a reliable indication of the future risk profile of the Fund. The risk and reward category shown is not guaranteed to remain unchanged and may change over time. The lowest category does not mean risk free. Bond values are affected by changes in interest rates, and the bond issuer s creditworthiness. Bonds that produce a higher level of income usually have a greater risk of default. An investment in shares of other funds will assume any specific risks associated with those funds. Unregulated funds carry higher risk as they have less rules governing them. Full information on the risks applicable to the Fund is detailed in the Prospectus. Aviva Investors Multi-Manager 20-60% Shares Fund 19

22 AVIVA INVESTORS MULTI-MANAGER 20-60% SHARES FUND (CONTINUED) Top Ten Holdings BlackRock North American Equity Tracker Fund (L Acc) 17.33% Hermes Global High Yield Bond Fund (F Acc) 9.16% Aviva Investors Sterling Credit MoM 1 Fund 6.64% MW Developed Europe TOPS Fund (G) 6.00% BlackRock European Dynamic Fund (Acc) 5.95% Invesco Perpetual European Equity Income Fund (Acc No Trail) 5.75% Artemis Income Fund (Inc) 5.46% M&G European Loan Fund (C Inc) 5.25% Odey European Fund (B Inc) 5.04% JPMorgan Global Corporate Bond Fund (C Dist) Hedged 4.82% BlackRock North American Equity Tracker Fund (L Acc) 9.36% AXA Framlington UK Select Opportunities Fund (R Acc) 7.44% Artemis Income Fund (Inc) 7.19% Aviva Investors Sterling Credit MoM 1 Fund 7.16% Aviva Investors UK Equity MoM 3 Fund 7.02% Odey European Fund (B Inc) 6.58% Insight LIBOR Plus Fund (B) 6.27% MW Developed Europe TOPS Fund (G) 5.69% Pimco Global Capital Securities Fund (Inc) Hedged 5.55% M&G European Loan Fund (C Inc) 5.13% Portfolio Breakdown Developed Europe Excl UK 23.12% 26.95% North America 21.68% 14.15% United Kingdom 19.45% 28.46% Managed Fund 14.43% 8.95% Cash and Equivalents 7.20% 6.51% Emerging Asia 4.11% 4.38% Japan 3.96% 2.66% Developed Asia 1.48% 1.02% Property 0.91% 0.53% Australia & New Zealand 0.53% Other Sectors 0.68% 1.31% Total Investments 97.55% 94.92% Net Other Assets 2.45% 5.08% Net Assets % % The above portfolio breakdown details the geographical exposure of the underlying portfolio of the Collective Investment Scheme (CIS) that the Fund is invested in as opposed to the domicile of the CIS. 20 Aviva Investors Multi-Manager 20-60% Shares Fund

23 AVIVA INVESTORS MULTI-MANAGER 20-60% SHARES FUND (CONTINUED) Share Price Record Income Shares Share class Calendar year Highest price* (p) Lowest price* (p) Class *** Class ** *** Class *** Share Price Record Accumulation Shares Share class Calendar year Highest price* (p) Lowest price* (p) Class * Valued at mid market prices. ** Up to 28 February ** * Valued at mid market prices. ** From 1 October 2012 (date of launch). *** Up to 28 February Aviva Investors Multi-Manager 20-60% Shares Fund 21

24 AVIVA INVESTORS MULTI-MANAGER 20-60% SHARES FUND (CONTINUED) Revenue Record Income Shares The revenue record table below shows the net distribution rates per calendar year on a payment date basis for an investment made on 4 January 2010 (1 October 2012 for Share Class 2). Share class Calendar year Net revenue per share (p) Per 1,000 invested ( ) Class ** Class * N/A N/A ** Class ** Revenue Record Accumulation Shares The revenue record table below shows the net distribution rates per calendar year on a payment date basis for an investment made on 4 January Share class Calendar year Net revenue per share (p) Per 1,000 invested ( ) Class * * Up to 30 April 2015 (the final distribution payment date). * From 1 October 2012 (date of launch). ** Up to 30 April 2015 (the final distribution payment date). 22 Aviva Investors Multi-Manager 20-60% Shares Fund

25 AVIVA INVESTORS MULTI-MANAGER 20-60% SHARES FUND (CONTINUED) Calendar Year Performance Income Shares Total Return Fund 5 % IA Mixed Investment 20-60% Shares 6 % 2010 Share Class Share Class Share Class 1 (3.33) (2.06) Share Class 3 (2.61) (2.06) 2012 Share Class Share Class 2* Share Class Share Class Share Class Share Class Share Class Share Class Share Class ** Share Class Share Class Share Class Calendar Year Performance Accumulation Shares Total Return Fund 7 % IA Mixed Investment 20-60% Shares 8 % 2010 Share Class Share Class 2 (2.86) (2.06) 2012 Share Class Share Class Share Class * Share Class Source: Aviva Investors (based on 9am values). 8 Source: Lipper (based on close of business values). * Up to 28 February The value of an investment in the Aviva Investors Multi-Manager 20-60% Shares Fund and any revenue from it can go down as well as up. You may not get back the original amount invested. Past performance is not a guide to future performance. 5 Aviva Investors (based on 9am values). 6 Source: Lipper (based on close of business values). * From 1 October 2012 (date of launch). ** Up to 28 February Aviva Investors Multi-Manager 20-60% Shares Fund 23

26 AVIVA INVESTORS MULTI-ASSET FUND I Investment Objective The Fund aims to provide returns through a combination of capital growth and income. Investment Policy The Fund aims to achieve the investment objective by employing a blend of both strategic and tactical asset allocation across a diversified range of global asset classes. The Fund may invest in securities, fixed income assets, Exchange Traded Funds, collective investment schemes, warrants, money market instruments, deposits, cash, near cash, property and commodities. Exposure to property and commodities will be via collective investment schemes and Exchange Traded Funds. The Fund may also invest directly in derivative instruments (including commodity futures) for the purposes of investment and efficient portfolio management. By combining diversified and relatively uncorrelated assets, investment risk is controlled and kept in line with the Fund s defensive risk profile. Details about the Fund s defensive risk profile are available on request from the ACD. Risk Profile The Fund invests in other collective investment schemes and exchange traded funds (ETFs) and by doing so assumes any specific risks associated with the schemes or funds. ETFs may have exposure to derivative instruments and therefore expose the Fund to counterparty default risk. The Fund has exposure to UK and overseas equities and fixed interest securities. Changes in exchange rates, interest rates and the credit ratings of companies issuing bonds may affect the performance of the Fund. The Fund has exposure to investments in countries deemed to be emerging markets that are usually considered to carry a greater degree of risk than investments in established markets. The solvency of organisations in which the Fund has exposure to can change and this can affect the Fund s capital. Fund Manager s Report The Fund (share class 1) returned 8.36 per cent* over the review period, with equity, fixed-income and other investments each contributing a roughly equal share to overall performance. More specifically, the Fund s sizeable position in North American equities proved beneficial, while a decision to hedge the Fund s exposure to the yen, resulting from its holding in Japanese equities, further boosted performance. Other positives included exposure to both property and the Aviva Investors Multi- Strategy Target Return Fund. Global equities advanced, with a number of major indices hitting record highs, boosted by loose monetary policy and strengthening economic data. US stocks surged as companies continued to grow profits and as domestic economic data continued to improve. Japanese shares also rose sharply as the government pledged to take steps to lift economic growth and as the country s pension fund said it would raise the amount of equities it holds. European markets climbed too as the European Central Bank (ECB) said it will introduce quantitative easing at long last. But while UK shares also climbed, steep falls in commodity prices meant a market which is laden with the shares of a large number of the world s biggest commodity producers underperformed most international peers. 24 Aviva Investors Multi-asset Fund I

27 AVIVA INVESTORS MULTI-ASSET FUND I (CONTINUED) Fund Manager s Report (continued) Gilts rallied sharply as plunging oil prices helped push UK inflation to its lowest in 15 years and as global government bond yields plunged after the ECB s announcement. Corporate bonds generated positive returns as strong global economic data and loose monetary policy fuelled investors risk appetite, in turn causing credit spreads to tighten. Outlook We increased the Fund s position in European equities at the start of 2015 in anticipation of the ECB s announcement while we simultaneously reduced exposure to North American equities after a strong run in The portfolio remains biased towards developed relative to emerging equity markets since we believe developed economies are likely to perform comparatively better in the short to medium term. We have recently added a position in Italian government bonds. With yields now negative in a number of core European government bond markets, we believe there is scope for Italian yields to fall further. The Fund also has exposure to bank loans which should help to reduce the sensitivity of its overall exposure to fixed income in the event interest rates rise in the US and UK. The Fund retains exposure to property which not only offers an attractive yield relative to most other asset classes along with the potential for capital growth, but provides increased diversification. April 2015 * Fund performance figures share class 1, source Lipper, net of fees, net income reinvested in GBP. Fund Facts Accounting dates Ex-dividend dates 28 February 29 February/ 1 March Distribution dates 30 April 31 August 1 September 31 October Ongoing Charges Figure* Share Class % 1.84% Share Class % 0.99% Share Class % 1.34% Share Class R3 0.88% 1.09% Share Class % N/A * The Ongoing Charges Figure (OCF) is calculated as the ratio of the total ongoing charges to the average net asset value of the Fund over the year. The OCF is made up of the Annual Management Charge and other operating costs deducted from the assets of the Fund during the year, except for those payments that are explicitly excluded (performance fees). The OCF includes transaction charges which were excluded from the Total Expense Ratio (TER) calculations provided previously. The OCF has replaced the TER. The OCF includes a synthetic element of 0.19% in respect of the underlying investments. There is a cap on all other operating expenses of 0.25%, however in the current period, all other operating expenses were less than this capped amount. Revenue Distributions Accumulation Shares Final distribution for the six months ended 28 February Pence per share payable Pence per share paid Share Class Share Class Share Class Share Class R Share Class Any opinions expressed are those of the fund manager. They should not be viewed as a guarantee of a return from an investment in the funds. The content of the commentary should not be viewed as a recommendation to invest nor buy or sell any securities. Past performance is not a guide to the future. The value of a fund and the income from it may go down as well as up, and the investor may not get back the original amount invested. Aviva Investors Multi-asset Fund I 25

28 AVIVA INVESTORS MULTI-ASSET FUND I (CONTINUED) Fund Facts (continued) Net Asset Value Accumulation Shares* Pence per share Pence per share / launch Change Share Class % Share Class % Share Class % Share Class R % Share Class ** 0.85% * Valued at bid market prices. ** Launch price on 9 February Total Return Accumulation Shares Fund 1 IA Specialist 2 Share Class 1* 8.36% 4.94% Share Class 3* 9.01% 4.94% Share Class 4* 8.73% 4.94% Synthetic Risk and Reward Indicator Lower risk Typically lower rewards Higher risk Typically higher rewards The Fund has been allocated a risk number based on the higher of the historic volatility of its share price, the historic volatility of its current asset classes or its intended maximum risk levels. This indicator is based on historical data, calculated using European Union rules, and may not be a reliable indication of the future risk profile of the Fund. The risk and reward category shown is not guaranteed to remain unchanged and may change over time. The lowest category does not mean risk free. Bond values are affected by changes in interest rates, and the bond issuer s creditworthiness. Bonds that produce a higher level of income usually have a greater risk of default. An investment in shares of other funds will assume any specific risks associated with those funds. Unregulated funds carry higher risk as they have less rules governing them. Full information on the risks applicable to the Fund is detailed in the Prospectus. Share Class R3* 8.91% 4.94% Share Class 9** 0.87% 6.78% 1 Source: Aviva Investors (based on 2pm values). 2 Source: Lipper (based on close of business values). * For the year ended 28 February ** From 9 February 2015 (date of launch) to 28 February Aviva Investors Multi-asset Fund I

29 AVIVA INVESTORS MULTI-ASSET FUND I (CONTINUED) Top Ten Holdings Aviva Investors Global Aggregate Bond Fund (Z Acc) Hedged 14.30% Aviva Investors Multi-Strategy Target Return Fund (Acc) 11.30% BlackRock North American Equity Tracker Fund (L Acc) 10.91% JPMorgan Global Corporate Bond Fund (C Dist) Hedged 7.93% Aviva Investors Property Trust (1 Acc) 7.51% M&G European Loan Fund (C Inc) 6.16% Insight LIBOR Plus Fund (B) 6.12% Aviva Investors Emerging Markets Bond Fund (Z Acc) Hedged 5.39% Aviva Investors Global High Yield Bond Fund (Z Acc) Hedged 5.19% BlackRock Continental Euro Equity Tracker Fund (L Acc) 3.20% JPMorgan Global Corporate Bond Fund (C Dist) Hedged 19.54% Aviva Investors Short Duration Global High Yield Bond Fund (I) Hedged 13.00% BlackRock North American Equity Tracker Fund (L Acc) 11.77% Insight LIBOR Plus Fund (B) 10.08% Aviva Investors Global Aggregate Bond Fund (I) Hedged 8.03% Aviva Investors Property Trust (1 Acc) 7.83% M&G European Loan Fund (C) 7.57% Aviva Investors European Corporate Bond Fund (I Acc) 6.92% BlackRock Continental Euro Equity Tracker Fund (L Acc) 3.46% Aviva Investors UK Index Tracking Fund (3 Acc) 2.14% Portfolio Breakdown North America 20.70% 32.52% Alternative Trading Strategies 11.37% 0.00% UK 10.72% 21.19% Developed Europe Excl UK 9.48% 16.36% Property 7.96% 7.95% Cash and Equivalents 7.91% 3.80% Japan 4.13% 3.49% Non-Classified 2.62% 1.46% Emerging Asia 2.43% 0.94% South & Central America 2.15% 0.50% Other Sectors 5.05% 9.00% Total Investments 84.52% 97.21% Net Other Assets 15.48% 2.79% Net Assets % % The above portfolio breakdown details the geographical exposure of the underlying portfolio of the Collective Investment Scheme (CIS) that the Fund is invested in as opposed to the domicile of the CIS. Aviva Investors Multi-asset Fund I 27

30 AVIVA INVESTORS MULTI-ASSET FUND I (CONTINUED) Share Price Record Accumulation Shares Share class Calendar year Highest price* (p) Lowest price* (p) Class ** Class ** Class ** Class R3 2012*** Class * Valued at mid market prices. ** From 6 February 2012 (date of launch). *** From 20 August 2012 (date of launch). Up to 28 February From 9 February 2015 (date of launch) to 28 February Revenue Record Accumulation Shares The revenue record table below shows the net distribution rates per calendar year on a payment date basis for an investment made on 6 February 2012 (20 August 2012 for Share Class R3 and 9 February 2015 for Share Class 9). Share class Calendar year Net revenue per share (p) Per 1,000 invested ( ) Class * *** Class * *** Class * *** Class R3 2012** *** Class * From 6 February 2012 (date of launch). ** From 20 August 2012 (date of launch). *** Up to 30 April 2015 (the final distribution payment date). From 9 February 2015 (date of launch) up to 30 April 2015 (the final distribution payment date). 28 Aviva Investors Multi-asset Fund I