AVIVA Investors, the global asset management business of Aviva plc (Aviva), launches a multi-asset fund to both accredited and retail investors in Singapore to help deliver long-term sustainable income for people planning their retirement.
The Aviva Investors Sustainable Income and Growth Fund (SIG) is a global, bottom-up vehicle that aims to provide 5% natural income with long-term capital growth from a portfolio of 80 to 120 securities drawn from over 25,000 names in the MSCI All Country World Index and the Bloomberg Barclays Global Aggregate Bond Index.
Fund manager Francois de Bruin and the investment team will seek to improve the sustainability of holdings through engagement and proxy voting. Environmental, social and governance (ESG) criteria are fully integrated into the investment process, which excludes sectors such as tobacco and controversial weapons, as well as energy companies that derive over 10 per cent of their revenues from coal.
Aviva Investors has a long heritage in responsible investment dating back to the 1970s and was a founding signatory of United Nations Principles of Responsible Investment in 2006. The fund leverages Aviva Investors’ collective expertise in equities, credit, solutions and multi-asset and macro teams worldwide, while supported by the global responsible investment team.
Francois De Bruin, fund manager, Aviva Investors Sustainable Income and Growth, says, “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,” he adds.
Charles Wong, head of wholesale, Asia at Aviva Investors, says, “We are delighted to add the Sustainable Income and Growth Fund to our suite of retirement solutions. The Fund seeks to deliver natural income that is sustainable and designed to grow over time, with ESG embedded into the investment process.
“In an environment of volatile markets and concerns over growth, we believe SIG can play an important role in addressing the need of investors in Singapore for long-term regular income with a responsible investment focus,” he adds.