UK-based Aviva Investors has set up a multi-asset fund aimed at delivering long-term sustainable income for people planning their retirement.
A global, bottom-up vehicle, the fund aims to generate 5% natural income with long-term capital. The portfolio includes between 80 to 120 securities drawing from over 25,000 named in the MSCI All Country World Index and the Bloomberg Barclays Global Aggregate Bond Index.
Environmental, social and governance (ESG) analysis will be a key component of the fund, according to the firm.
“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 the fund’s manager Francois de Bruin (pictured).
“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.”
The Aviva Investors Sustainable Income and Growth Fund aims to address demand for sustainable income and investing with a responsible focus, according to Aviva Investor’s global head of wholesale, TJ Voskamp.
*Aviva Investors executive interview
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