Aviva Investors’ global equity fund changes mandate

Aviva Investors’ World Leaders Fund has changed investment objective, converting from a global growth to an income mandate in response to the growing importance of company dividends in investors’ total equity returns.

To reflect the new investment objective, the fund name has changed to Aviva Investors Global Equity Income Fund.

Kirill Pyshkin continues to manage the fund and will target attractively valued, well-managed, financially strong companies offering sustainable and growing dividends, the firm said in a statement.

This will predominantly include large, blue chip companies from a diverse range of sectors and geographies in an investment process that aims to reduce volatility and risk. He will focus on creating a well-diversified portfolio of around 40 quality stocks held for an average of three years, with an annualized target yield of at least 25% higher than the MSCI World Index.

Pyshkin has been responsible for over £1bn of assets in Aviva Investors’ global equity income strategy since 2010, including the Aviva Investors Global Equity Income Fund (SICAV). He is a part of Aviva Investors’ Equity Solutions Team of nine global fund managers running over £22bn of assets and also calls on the wider experience of Aviva Investors’ investment, research and strategy teams globally to gain insights into global markets.

Aviva Investors has run the global equity income strategy since 2001, investing in the best companies irrespective of their location, size or sector.

“With interest rates likely to remain very low for some time in the developed world, the search for new sources of income has rarely been more important for investors. Dividend yields in the UK, Germany, Japan, US are higher than those of government bonds so the appeal of equities is obvious,” Pyshkin said.

“However, trying to decide which markets offer the best potential returns is difficult at the best of times. A well-diversified global portfolio can provide strong returns with less risk than a portfolio concentrated on just one region.”

Aviva Investors is the global asset management business of Aviva plc. Aviva Investors operates in 15 countries in Asia Pacific, Europe, North America and the United Kingdom with assets under management of £274bn (end December 2012).

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