Aviva Investors is seeking to “shake-up” the multi asset market with the launch of five low-cost funds next month, Portfolio Adviser has learned.
The multi-asset fund (MAF) Core range is expected to launch on 30 November with an ongoing charges figure of 15 basis points, which the firm said is “very competitive” against its peers.
The range has a degree of active asset allocation and security selection but will lean heavily on passive funds. It will also include “ESG-optimised” funds which are rated based on Aviva Investors’ proprietary ESG Elements scoring system.
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MAF Core will sit alongside Aviva Investors’ existing MAF range which is undergoing some enhancements.
From 30 November the range is adding the word ‘Plus’ into the name of each fund to help distinguish it from the Core range. For example, the MAF III will become the MAF Plus III.
In addition, a performance benchmark and target is being added to each fund in the new and current range. As a result, the MAF Plus range will target an average return of 1.3% per annum in excess of its benchmark before charges and taxes. This will be 0.3% per annum for MAF Core.
The firm said this will help investors measure performance and provide more transparency for assessing value for money.
Aviva Investors head of multi-asset funds Sunil Krishnan (pictured) said: “We hope that our announced changes will shake up the multi-asset market. Investors today want to invest sustainably, while keeping costs down, but often have to choose between fulfilling one need or the other.
“Our new MAF Core range will combine both these needs into one solution by having a fixed OCF of 0.15% and ESG integration. We will announce full details in due course.”
Krishnan added: “We are also adding not only a performance benchmark but also a performance target, for the new and current MAF range. In essence, we’re helping by lifting up the bonnet to show investors what they’re getting for their money.”
ESG funds will also feature more in the MAF Plus range.
