Aviva Investors has announced the launch of a multi-asset fund to accredited and retail investors in Singapore.
The product, the Aviva Investors Sustainable Income and Growth (SIG) Fund, is targeting 5% natural income with long-term capital growth from a portfolio of 80 to 120 securities. The names are from the MSCI All Country World Index and the Bloomberg Barclays Global Aggregate Bond Index, the London-based firm said in a statement.
The fund manager, Francois de Bruin, and the investment team are aiming to improve sustainability via engagement and proxy voting.
The asset management arm of Aviva Group added that environmental, social and governance (ESG) criteria are “fully integrated” in the investment process, which excludes sectors such as tobacco, controversial weapons and energy companies whose revenue from coal exceeds 10%.
“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,” said de Bruin.
“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 added.
Charles Wong, head of wholesale – Asia at Aviva Investors said: “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,” added Wong.
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