AVIVA INVESTORS MULTI-STRATEGY

Transcription

1 AVIVA INVESTORS MULTI-STRATEGY AIMS Target Income Fund - Ireland For an uncertain world September 2018 This document is for Professional Clients, institutional/qualified investors and Advisers only. It is not to be viewed by or used with retail clients

2 AGENDA STRATEGY OVERVIEW Page 4 PERFORMANCE REVIEW Page 5 KEY CHANGES Page 10 OUTLOOK & POSITIONING Page 13 APPENDIX Page 17

3 Aviva Investors Multi-Strategy Target Income Fund Meeting your needs Your needs Our proposal Cash flow for liabilities Income objective: Cash + 4% p.a. (before corporation tax) 1 Visibility on cash flow Consistent monthly dividends Long term dependability Preserve capital over time Minimise volatility Risk objective: less than 50% of the volatility of global equities 2 1. The income is an annual target measured from 1st January to 31st December each year. Income on the Fund will be paid monthly. Charges are deducted from capital. The income target is expressed before corporation tax. 2. Global equities benchmarked by MSCI All Country World index (Local currency). The value of an investment may go down as well as up and the investor may not get back the original amount invested. 3

4 Strategy overview Robust portfolio designed to perform in all market conditions MARKET RETURNS Exposure to traditional assets Expected to perform in rising markets strategies Long term Unconstrained OPPORTUNISTIC RETURNS Taking advantage of market mispricing Can perform in rising or falling markets RISK-REDUCING RETURNS Exposure to traditional & non traditional assets Protects portfolio in times of market stress 4

5 Indexed performance Performance since inception (SICAV) Aiming to deliver income while protecting capital in stressed times China GDP disappoints & capital outflows accelerate Fund perf.: -1.2% Market perf.: -13.3% Brexit Fund perf.: 0.2% Market perf.: -5.6% US election Fund perf.: -0.8% Market perf.: -3.4% Fed rate hike fears Fund perf: -3.0% Market perf: -8.4% Ann. volatility: 3.80% Ann. gross return: 0.28% Ann. net return: -0.51% Ann. volatility: 9.73% Ann. gross return: 11.33% AIMS Target Income SICAV Fund, Total Return MSCI All Country World equity index (Local currency) Past performance is not a guide to future performance. Source: Aviva Investors, Lipper, a Thomson Reuters company, as at 31 August Based on the underlying Aviva Investors Multi Strategy Target Income Fund (SICAV), in EUR, in which the Aviva Investors Multi Strategy Target Income Fund (Ireland) predominantly invests. Basis: performance is net of fees, in Euro, unless indicated otherwise. Inception date 30 September The Total Return curve shows cumulative performance since inception. Income on the Fund will be paid monthly. Charges are deducted from capital. 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. 5

6 Performance to 31 August 2018 AIMS Target Income Fund (Ireland) performance AIMS Target Income Fund (Ireland) performance 2.0% Gross performance Performance (Total Return) S.I. ann. 1.0% 0.67% AIMS Target Income Fund (net of fees) -1.11% 0.0% -0.01% AIMS Target Income Fund (gross of all fees) -0.01% -1.0% -2.0% -0.97% -1.34% -1.49% -1.29% 1m 3m 6m YTD 1y S.I. ann. Source: Aviva investors, Lipper, a Thomson Reuters company, as at 31 August Performance is shown Mid-to-mid, in EUR. Inception date 07 April Realised daily volatility S.I. ann. AIMS Target Income Fund (Ireland) 4.13% MSCI All Country World equity index (Local Currency) 8.52% Fund performance (gross of all fees) 2016 (1) 2017 Q Q m S.I. annualised AIMS Target Income Fund (Ireland), Total Return 1.94% -0.96% -1.74% -0.90% -0.97% -0.01% Capital -0.74% -5.16% -2.85% -1.89% -1.27% -4.20% Income distributed 2.68% 4.20% 1.10% 0.99% 0.30% 4.19% (1) 2016 returns are provided from 07 April 2016 to 31 December Past performance is not a guide to future performance. Source: Aviva Investors, B-one, Lipper, a Thomson Reuters company, as at 31 August Performance is shown gross of fees, in Euro, unless indicated otherwise. Inception date 07 April Income on the Fund will be paid monthly. Fees are deducted from capital. Fees will reduce the actual return received by investors, for illustration purposes, the inclusion of the fees (AMC) of share class B would reduce the gross performance by 1.10% per annum (i.e. a gross return of 4% would deliver 2.90% net of fees). 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. 6

7 Themes Beginning of 2018 Robust global growth is supportive for growth assets Tighter monetary policy as a trend leads to higher yields Rising inflationary pressures in Europe and US Volatility to trend higher across bond and equity markets Source: Aviva Investors as at 1 st January

8 Main drivers of performance 31 August 2018 YTD performance attribution (%) The fund returned -1.49% year to date Market returns Credit Currency Duration Equities Property Inflation Volatility Credit strategies (long EM debt segregated mandate & US credit) contributed positively. Equity positions detracted overall - positive performance of equity index underwriting and long global equities was more than offset by the losses within long global equity and EM income. Opportunistic returns Credit Currency Duration Equities Property Inflation Volatility Long Mexico was the biggest single detractor within currency. Short duration strategies in the US & UK delivered the strongest returns. Long US inflation position also performed strongly as fundamentals in the US continued to remain robust. On the other hand, currency positions vs the US dollar (Indian rupee, Turkish lira, Japanese yen & Saudi riyal) detracted. Risk-reducing returns Credit Currency Duration Equities Property Inflation Volatility Long US dollar vs Taiwanese dollar alongside long Australian rates positions outperformed as trade war threats escalated. Cyclical vs defensive volatility strategies detracted at the start of the year given market shocks originating in the US. Relative value equity trades (now closed) also detracted Past performance is not a guide to future performance. Source: Aviva Investors as at 31 August 2018 based on the underlying Aviva Investors Multi Strategy Target Income Fund (SICAV), in EUR, in which the Aviva Investors Multi Strategy Target Income Fund (Ireland) predominantly invests. Performance contribution is shown gross of all fees, in EUR. Inception date 30 September 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. 8

9 Main drivers of performance Q performance attribution (%) The fund returned -0.87% over the quarter Market returns Credit Currency Duration Equities Property Inflation Volatility Long emerging market currency, equity and debt strategies were negatively impacted by escalating trade war threats. Long global REITs, US credit and our internally managed emerging debt mandate contributed positively. Opportunistic returns Credit Currency Duration Equities Property Inflation Volatility Short duration (UK and US) & long US and EUR inflation strategies drove the majority of the returns. On the other hand, long emerging market currency positions v the US dollar (namely long Indian rupee) detracted. Risk-reducing returns Credit Currency Duration Equities Property Inflation Volatility Short Asian currencies v the US dollar and long Australian rates strategies outperformed as trade war threats escalated. US front-end curve steepener (duration) strategy offset most of these gains as risk-off sentiment increased the demand for safe-haven assets Past performance is not a guide to future performance. Source: Aviva Investors as at 30 June 2018 based on the underlying Aviva Investors Multi Strategy Target Income Fund (SICAV), in EUR, in which the Aviva Investors Multi Strategy Target Income Fund (Ireland) predominantly invests. Performance contribution is shown gross of all fees, in EUR. Inception date 30 September 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. 9

10 Key changes Q Strong economic fundamentals remain but market risk threats are higher Market Returns Changed our exposure from European corporate credit to higher yielding assets (European subordinated debt) Increased the long emerging market debt segregated mandate Introduced Japanese REITS & call overwriting strategies Closed long Indian rates, Mexican peso currency put spread while introduced long Brazilian rates Opportunistic Returns Risk-reducing Returns Reduced long US inflation in favour of long European inflation Reduced short US rates in favour of short EUR and UK long-end rates Closed Indian rupee & Russian ruble currency put spreads Increased US rates volatility Switched from Japanese yield curve steepener to outright short long-end Japanese rates Closed long US dollar vs Taiwanese dollar (but increased our overall long US dollar exposure) Introduced US front-end yield curve steepener Increased Short UK inflation Closed US Relative Value equities (large vs small caps) Closed US rates payer spread Source: Aviva Investors, as of 30 June The examples of portfolio changes provided are for information purposes only and do not constitute an offer to subscribe for an interest in any investment strategy, nor advice of any nature. 10

11 Fund changes Contribution to risk (% of total portfolio) 60% 50% 45% 51% Dec-17 Mar-18 Jun-18 40% 38% 38% 36% 30% 30% 23% 20% 18% 18% 10% 0% Market returns Opportunistic returns Risk-reuducing returns Cash 1% 1% 1% Source: Aviva Investors, Cognity & Risk Metrics, as at 30 June 2018 based on the underlying Aviva Investors Multi Strategy Target Income Fund (SICAV), in EUR, in which the Aviva Investors Multi Strategy Target Income Fund (Ireland) predominantly invests. Risk is the stand-alone volatility assuming no diversification. Models used: 2-year daily risk model to March 2016, 5-year weekly risk model from April 2016 to date. Inception date 30 September

12 Key portfolio changes Evolution of sensitivity to different risk drivers 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Equity Delta 2.0% 1.5% 1.0% 0.5% 0.0% Inflation Delta 2 Interest Rate Delta (years) 20% US dollar Net Exposure % 10% 5% -4 0% -5% -6-10% Source: Aviva Investors, Cognity & Risk Metrics, as at 30 June 2018 based on the underlying Aviva Investors Multi Strategy Target Income Fund (SICAV), in EUR, in which the Aviva Investors Multi Strategy Target Income Fund (Ireland) predominantly invests. Risk is the stand-alone volatility assuming no diversification. Models used: 2-year daily risk model to March 2016, 5-year weekly risk model from April 2016 to date. Inception date 30 September

13 Outlook and positioning Solid global growth is supportive for growth assets GDP growth: outcomes and AI forecasts Market Returns Global Equities Long global equity & EM income and equity index underwriting Higher yielding credit EM debt & European subordinated debt Selective EM bonds and currency Brazil & Indonesia Source: Aviva Investors Q House View. 13

14 Outlook and positioning Trend towards tightening monetary policy leads to higher yields More bullish on interest rate hikes, particularly in the US Opportunistic Returns Short Developed Market Rates US, UK and Europe Long Inflation US Source: Aviva Investors Q House View. 14

15 Outlook and positioning Rising risk of a potential trade war to increase market risk World GDP and trade growth, y/y Risk-reducing Returns Short selective currencies vs US Dollar Australian bonds Short UK inflation Source: Aviva Investors Q House View. 15

16 Outlook and positioning Summary at fund level Long risk assets (equities & selective EM debt) Net short duration at fund level Long US Inflation & short UK inflation Long US Dollar Source: Aviva Investors as at 31 August

17 APPENDIX

18 Commitment An accountable team with firm-wide support Euan Munro Global CEO, Aviva Investors Strategic adviser to the AIMS fund range FUND MANAGERS, AIMS TARGET INCOME FUND Peter Fitzgerald Joined investment industry: 1995 Joined Aviva Investors: 2011 Ahmed Behdenna Joined investment industry: 2007 Joined Aviva Investors: 2015 Mark Robertson* Joined investment industry: 2000 Joined Aviva Investors: 2018 Investment Strategy (9) MULTI-ASSET & MACRO TEAMS SUPPORTING AIMS Portfolio Managers (28) Portfolio Construction & Risk (4) Implementation (16) Liaise with global investment teams in idea generation Multi-asset, Multi-strategy, rates and emerging market debt Conduct pre/post trade risk analysis Portfolio rebalancing and cash flow management GLOBAL TEAMS Chicago Toronto London Paris Warsaw Singapore 438 Investment Professionals 349 billion AUM Source: Aviva Investors. Members of the Multi-asset & Macro team updated as at 30 June The number of Investment professionals and AUM figures are updated as at 30 June * Joining Aviva Investors in September

19 Investment process Unconstrained approach driven by best ideas Creating an inventory of approved ideas Constructing a robust diversified portfolio House View Idea Generation Idea Evaluation Idea Selection Portfolio Construction & Risk Implementation Global collaboration in idea generation Dedicated AIMS team managing the portfolio 19

20 House View Key investment themes and risks Robust global growth Sustained inflation Trade tensions Higher interest rates around the world Markets adapt to the post-qe world Expected end of the ultra-low volatility era Risks to the House View Protectionism and trade conflicts China growth slowdown Higher inflation makes the Fed more activist Fed tightening falls behind the curve Debt servicing strains Liquidity challenges Source: Aviva Investors Q House View. 20

21 Construction Portfolio breakdown Market strategies Strategy Implementation Equities Long Global equity income Long Emerging equity income Equity index underwriting Physical equities / futures Physical equities / futures Options (short puts) Duration Long Brazilian rates 3-yr receiver swap Credit Long US credit Long Pan European credit Long Emerging market debt Long Indonesian rates Property Long REITS Long Japanese REITS Long German REITS Physical bonds / credit default swaps Physical bonds Physical bonds 5 & 10-yr local currency government bonds Physical equities (REITS) Physical equities (REITS) Physical equities (REITS) Opportunistic strategies Strategy Implementation Equities Call overwriting on single stocks Physical equities Duration Risk-reducing strategies Strategy Implementation Duration Developed market rates US front-end yield curve steepener Long Japanese payer swaption 2-yr/1-yr f Australian rates receiver swap 2-yr/1-yr f receiver swap / 5-yr/2-yr f payer swap Long 10-yr/10-yr f payer swaption Inflation Short UK inflation 10-yr inflation payer swap Volatility Korean yield curve steepener Short US rates US long-end yield curve steepener Long US multi-family housing market Short UK long-end rates Equities Long US Industrial vs Market Futures Long Japan vs US (cyclical vs defensive) Long China vs US (cyclical vs defensive) 2-yr/1-yr f receiver swap / 10-yr/1-yr f payer swap 5-yr/2-yr f payer swap 10-yr/1-yr f receiver swap / 30-yr/1-yr f payer swap Ginnie Mae and Freddie Mac CMBS 15-yr/15-yr f payer swap Inflation Long US inflation 10-yr inflation receiver swap Currency Long USD/SAR Long TRY/USD Long EUR/USD Options / forwards Options Forwards Volatility Long US rates volatility Long 15-yr/15-yr f payer swaption / long 15-yr/15-yr f receiver swaption 2-yr variance swap 2-yr variance swap Source: Aviva Investors, as at 31 August The examples of strategies provided are for information purposes only and do not constitute an offer to subscribe for an interest in any investment strategy, nor advice of any nature. 21

22 Key changes Q Expecting robust economic growth to persist & interest rate yields to rise Market Returns Introduced long (option based) positions in global & European equities while increased our exposure to Japanese equities (via equity index underwriting) Reduced US high yield & European credit exposure as spreads tightened considerably Introduced EM debt exposure (emerging market debt income mandate [hard and local currency] & long Indian rates) given more attractive yields/valuations Closed Turkey hard currency bonds & long Mexican peso forwards against the Australian Dollar Opportunistic Returns Introduced long European inflation Introduced short European long-end rates Introduced yield curve steepeners (US and Korea) Closed long US dollar vs Japanese yen Risk-reducing Returns Replaced long US dollar vs Korean won with long US dollar vs Taiwanese dollar Reduced US Relative Value equities (large vs small caps) Closed Long European market vs cyclical equities Source: Aviva Investors, as of 31 March The examples of portfolio changes provided are for information purposes only and do not constitute an offer to subscribe for an interest in any investment strategy, nor advice of any nature. 22

23 Main drivers of performance 2017 performance attribution (%) The fund returned -1.11% in 2017 Market returns Credit Currency Duration Equities Property Inflation Volatility Long directional strategies (equity income, credit & equity index underwriting) performed strongly as risk assets were supported by strong economic fundamentals. Long Mexico (currency) was the biggest single detractor. Opportunistic returns Credit Currency Duration Equities Property Inflation Volatility Idiosyncratic currency strategies (namely long USD vs SAR & JPY) detracted while long Indian rupee strategy contributed positively. Within duration, the US short rates position offset most of the losses generated by the US rates curve steepener & short UK long-end rates positions. Long inflation & long US rates volatility strategies also detracted. Risk-reducing returns Credit Currency Duration Equities Property Inflation Volatility Idiosyncratic currency strategies (namely long USD vs KRW & CNH) detracted from performance. The long European equity variance strategy detracted considerably as volatility levels across asset classes continued to fall Past performance is not a guide to future performance. Source: Aviva Investors as at 31 December 2017 based on the underlying Aviva Investors Multi Strategy Target Income Fund (SICAV), in EUR, in which the Aviva Investors Multi Strategy Target Income Fund (Ireland) predominantly invests. Performance contribution is shown gross of all fees, in EUR. Inception date 30 September 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. 23

24 Effective yield (%) Effective yield (%) Yield vs. risk Comparison to alternative exposures Yield v Duration Yield v Volatility 7 EM hard ccy (7) 7 EM hard ccy (7) AIMS Target Income (1) Global High Yield Index (2) EM local ccy (3) Global Corporate IG bonds (4) Global High Yield Index (2) AIMS Target Income (1) Global Corporate IG bonds (4) EM local ccy (3) Euro Stoxx 50 Index (8) Global Government IG bonds (5) German bond Index (6) Duration (%) German bond Index (6) Global Government IG bonds (5) Volatility (%) Past performance is not a guide to future performance. Source: Bloomberg, Aviva Investors as at 30 June (1) financial year net Income yield, net of fees, share class I, EUR. (5) Bank of America Merrill Lynch Global Government Index, Local currency (2) Bank of America Merrill Lynch Global High Yield Index (6) Bank of America Merrill Lynch German Index. (3) J.P.Morgan Government bonds Index Emerging Markets Global Diversified composite (7) J.P. Morgan EMBI Global Composite, Hard currency, USD (4) Bank of America Merrill Lynch Global Corporate Index, Local currency (8) Eurostoxx 50 Index 24

25 Performance Contribution to returns 1 Month 3 Months 6 Months YTD 1 Year SI Credit Long North American credit Long emerging market debt Long Pan-European credit Long Indonesian bonds Currency Long EUR v USD Short SAR Long TRY v USD Duration US front-end yield curve steepener Short UK long-end rates Short US rates Long developed market rates Long Brazilian rates Long Japanese rates Long US CMBS US long-end yield curve steepener Korean yield curve steepener Equities Long global equity income Long Emerging Market equities Equity Index Underwriting Long US industrials v market Inflation Long US inflation Short UK inflation Property Long German REITS Long Japanese REITS Long REITS Volatility Long US rates volatility Long China v US variance Long Japan v US variance Cash Total open positions Total closed positions Total Past performance is not a guide to future performance. Source: Aviva Investors as at 31 August 2018 based on the underlying Aviva Investors Multi Strategy Target Income Fund (SICAV), in EUR, in which the Aviva Investors Multi Strategy Target Income Fund (Ireland) predominantly invests. Performance contribution is shown gross of all fees, in EUR. Inception date 30 September 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. 25

26 Construction Portfolio risk breakdown Risk drivers and strategies contribution to risk (% of total portfolio risk) Expected annualised standard deviation: 6.14% Duration 37.1 Long Brazilian rates 7.1 Short EUR long-end rates 5.8 Short UK long-end rates 5.7 US front-end yield curve steepener 5.2 Short US rates 4.8 Long developed market rates 4.5 Long US CMBS 1.2 US long-end yield curve steepener 1.1 Short Japanese rates 1.1 Korean yield curve steepener 0.5 Inflation 12.4 Long US inflation 4.8 Short UK inflation 4.6 Long Europe inflation 3.0 Currency 1.0 Long US dollar v Saudi riyal 0.7 Long Turkish lira v US dollar 0.2 Long US dollar v Taiwanese dollar 0.1 Long Russian ruble v US dollar 0.0 Credit 8.2 Long North America credit 4.2 Long emerging market debt 2.4 Long Indonesian bonds 1.2 Long Pan-European credit 0.4 Equities 28.5 Long global equity income 14.9 Long Emerging market equity income 6.8 Equity index underwriting 6.8 Property 7.3 Long Japanese REITs 4.6 Long REITS 2.7 Volatility 4.7 Long US rates volatility 2.4 Long China v US variance 1.6 Long Japan v US variance 0.4 Long Europe v US variance 0.4 Cash & Currency hedge 0.8 Portfolio Characteristics Risk driver level (e.g. equities, duration, credit) Individual investment strategy Borrowing Leverage Investment guidelines Up to 50% of aggregate stand alone risk Up to 30% of aggregate stand alone risk Not allowed Up to 700% on a gross sum notional basis Source: Aviva Investors, as at 30 June 2018 based on the underlying Aviva Investors Multi Strategy Target Income Fund (SICAV), in EUR, in which the Aviva Investors Multi Strategy Target Income Fund (Ireland) predominantly invests. The data shown is based on ex-ante volatility which is a forward looking measure. Potential returns are based on a number of assumptions, may not be realised and are subject to risk. *Expected annualised standard deviation is defined as the ex-ante undiversified annualised volatility based on 5-year-weekly data. 26

27 Construction Strategy contribution to portfolio risk and diversification benefit 18% 10-year risk of global equities Undiversified risk 16% 14% 5-year risk of global equities 12% 10% Market returns Opportunistic returns Risk-reducing returns Cash & currency hedge Diversification benefit Portfolio risk 8% 6% 4% 2% 0% Source: Aviva Investors, as at 30 June 2018 based on the underlying Aviva Investors Multi Strategy Target Income Fund (SICAV), in EUR, in which the Aviva Investors Multi Strategy Target Income Fund (Ireland) predominantly invests.. The data shown are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. Potential returns are based on a number of assumptions, may not be realised and are subject to risk. 27

28 Construction Historical exposures Percentage of total portfolio risk by risk driver 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Cash Credit Currency Duration Equities Volatility Inflation Property Source: Aviva Investors, as at 30 June 2018 based on the underlying Aviva Investors Multi Strategy Target Income Fund (SICAV), in EUR, in which the Aviva Investors Multi Strategy Target Income Fund (Ireland) predominantly invests. The data shown is based on ex-ante volatility which is a forward looking measure. Potential returns are based on a number of assumptions, may not be realised and are subject to risk. 28

29 Return and risk statistics Worst daily returns since inception Daily return distribution since inception 1.00% % -1.00% -2.00% -3.00% -4.00% -5.00% AIMS Target Income Fund (SICAV) MSCI AC World LC index 200 AIMS Target Income Fund (SICAV) 180 MSCI AC World LC index Past performance is not a guide to future performance. Source: Aviva Investors as at 30 June 2018 based on the underlying Aviva Investors Multi Strategy Target Income Fund (SICAV), share class I, in EUR, in which the Aviva Investors Multi Strategy Target Income Fund (Ireland) predominantly invests. Performance is shown net of all fees, in EUR. Inception date 30 September 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. 29

30 Monthly distributions (cents paid per hundred shares) Delivering consistent and stable income Monthly distributions Past performance is not a guide to future performance. Source: Aviva Investors, Lipper, a Thomson Reuters company, as at 31 August Basis: performance is net of fees, in Euro, unless indicated otherwise. Inception date 30 September The final blue bar in the chart represents income that was declared on 01 August 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. Income on the Fund will be paid monthly. Charges are deducted from capital. 30

31 Key terms Aviva Investors Multi-Strategy Target Income fund (Ireland) Fund size 39 million Legal structure Unit Linked Fund Liquidity Daily Fund launch date 7th April 2016 Source: Aviva Investors as at 31 August Not all share classes are available in all jurisdictions. For further information, please contact your Aviva Investors sales representative. 31

32 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. Certain assets held in the Fund could, be hard to value or to sell at a desired time or at a price considered to be fair (especially in large quantities), and as a result their prices could be very volatile. 32

33 Important information Warning: Past performance is not a reliable guide to future performance. Warning: The value of your customer s investment may go down as well as up. Warning: The income your customer s get from these funds may go down as well as up. Warning: If your customer invests in this fund you may lose some or all of the money they invest. Warning: This fund may be affected by changes in currency exchange rates. The value of assets are subject to market fluctuations and can move irrationally and be unpredictably affected by many and various factors including political and economic events and rumours and as such the value of investments may go down as well as up and your clients may receive less than the original amount invested. Except where stated as otherwise, the source of all information is Aviva Investors as at 31 August 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 AIMS Target Income Fund (Ireland), invests in the Aviva Investors Multi-Strategy (AIMS) Target Income Fund (the underlying fund), a sub fund of the Aviva Investors Luxembourg SICAV. A small proportion of the fund may also be held in cash for liquidity purposes. While the underlying fund aims to preserve capital, charges are likely to erode your customer s capital in the AIMS Target Income Fund (Ireland) in today s low interest rate environment. If your customer invests in the AIMS Target Income Fund (Ireland) through an Approved Retirement Fund (ARF) their annual mandatory income payment will also erode their capital. The aims of the fund are not guaranteed, your customers capital is at risk when they invest in this fund. Derivative and leverage risks The underlying fund make significant use of derivatives. Where derivatives do not perform as expected, the fund could suffer significant losses. Certain derivatives will add leverage and can cause large fluctuations in the fund s value. They can also result in the fund facing greater potential losses than the initial. Leverage can magnify gains or losses. It may also impair liquidity, forcing a sale of investments and causing the fund to fail to achieve its objectives. Aviva Investors Multi Strategy Target Income Fund is a sub-fund of Aviva Investors SICAV I; an open-ended investment company incorporated as a Société d'investissement à Capital Variable in Luxembourg. It is authorised by the Commission de Surveillance du Secteur Financier (CSSF) and qualifies as an Undertaking for Collective Investment in Transferable Securities (UCITS) under Part I of the law of 17 December 2010 relating to undertakings for collective investment. The Management Company is Aviva Investors Luxembourg S.A. The Investment Manager is Aviva Investors Global Services Limited, regulated and authorised by the Financial Conduct Authority. Approved for use in Austria, Finland, Germany, France, Ireland, Sweden, Norway, Luxembourg, Netherlands, Italy, Spain and Switzerland. Issued and approved by Aviva Life & Pensions UK Limited, trading as Aviva Life & Pensions Ireland, is authorised by the Prudential Regulation Authority in the UK and is regulated by the Central Bank of Ireland for conduct of business rules. Aviva Life & Pensions UK Limited, trading as Aviva Life & Pensions Ireland, is also regulated in the UK: by the Prudential Regulation Authority for prudential rules and, to a limited extent, by the Financial Conduct Authority for applicable UK conduct rules. Registered Branch Office in Ireland (No ) at One Park Place, Hatch Street, Dublin 2. Tel (01) Web Registered in England ( ) at Wellington Row, York, YO90 1WR. Aviva Investors Global Services Limited is a company registered in England under company No Registered Office: St Helen s, 1 Undershaft, London EC3P 3DQ. Authorised and regulated in the UK by the Financial Conduct Authority. INAIMS17/180 33