Old Investment Policy
The fund aims to provide capital growth.
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 ‘balanced’ risk profile.
New Investment Policy
The fund aims to grow your investment over the long term (5 years or more).
It is managed to a "balanced" risk profile, which we define as aiming for an average volatility of 75% of the volatility of "Global Equities" (where the volatility of Global Equities equals 100%).
Core investment: The fund invests in a broad range of global asset classes (including emerging markets) that may include shares, bonds, cash, property, and commodities, and will gain this exposure by investing in other funds (including funds managed by Aviva Investors companies), directly in these assets, or through the use of derivatives.
Derivatives may be used for investment purposes to generate additional returns for the fund but will not materially alter the risk profile. They are also used to gain exposure to asset classes which may otherwise be difficult or costly to achieve, or to manage the fund’s cash flows in a cost-effective manner. Derivatives may also be used to reduce risk, such as foreign currency risk within the fund.
Strategy: The fund is actively managed, and the Manager does not base investment decisions upon a benchmark. Instead the asset allocation of the fund is designed to be consistent with its "balanced" risk profile.
The portfolio blends these asset classes for diversification, allowing more defensive or aggressive asset allocations to be selected in line with the expected risk profile depending on market conditions and opportunities.
The fund is part of a range of five multi-asset funds, each with their own risk profile, ranging from I (the lowest) to V (the highest). This fund is number IV in the range. For more information on these funds please refer to the Prospectus.
Environmental, Social and Governance (ESG)
ESG factors are integrated into the investment process and are considered alongside a range of financial metrics and research, but the Investment Manager retains discretion over which investments are selected. We also actively engage with companies and use voting rights with the aim of positively influencing company behaviour and helping to create competitive returns. In addition, the fund has limited exclusions based on Aviva Investors’ UK Responsible Investment policy. Further information on how we integrate ESG and the Aviva Investors UK Responsible
Investment policy into our investment approach, and how we engage with companies is available on our website and in the Prospectus.
Performance and Risk Measurement
The fund aims to remain within a defined risk range consistent with its "balanced" risk profile – measured against the volatility of Global Equities. Volatility measures how much the returns of the fund fluctuate, and it is an indicator of the level of risk taken by the Investment Manager.
The fund is expected to operate within a range of 67% to 83% of the volatility of Global Equities, with an average volatility of 75%. There may be times when it operates outside of this range.
The index we use to represent Global Equities is the MSCI® All Country World Index GBP (the "Index")*. The fund’s volatility is compared against the Index’s monthly volatility, annualised, over 3-year rolling periods.
*The MSCI® All Country World Index comprises large and medium sized companies, as determined by their market capitalisation (total market value of a company's outstanding shares), from both developed and emerging markets, and the Index is designed to provide a broad measure of global equity market performance.
The Index has been selected as a benchmark due to the broad range of companies that it represents, and it is therefore an appropriate measure of the volatility of Global Equities.