Aviva Investors backs absolute return despite end of GARS and Invesco Global Targeted Returns
Peter Fitzgerald (pictured) has managed the Aviva Investors Multi-Strategy (AIMS) Target Return fund since its launch in 2014.
Following a strategic review, Invesco said on Wednesday (27 September) that it would be closing its Global Targeted Returns strategy after concluding that current demand for targeted return strategies had continued to diminish.
The closure of the fund followed the announcement by abrdn this summer that GARS, a fellow absolute return peer, would cease operating as a standalone vehicle and be rolled over into the company's diversified asset funds after a strategic review.
Invesco to close global targeted returns strategy in push to simplify multi-asset range
Despite the downfall of both rivals, Aviva Investors is still standing up for its AIMS Target Return strategy, arguing that although the playing field has narrowed, global macro is still a «sizeable sector» within the liquid alternatives landscape.
«In 2022, when equities and bonds were down in the double digits, AIMS Target Return generated +6% returns, providing enhanced diversification and controlling volatility in our clients' portfolio when they needed it most,» a spokesperson told Investment Week.
«Given this performance, we are seeing increased client interest and positive conversations with consultants.»
The AIMS Target Return fund is a multi-strategy portfolio that targets an annual return of cash plus 5% per annum above the central bank base rate over rolling three-year periods, with less than half the volatility of global equities.
The strategy, which holds £2.5bn in assets, has been managed by Peter Fitzgerald, CIO for multi-asset and macro at Aviva Investors, since launch, with multi-strategy funds head Ian Pizer joining as a
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