Aviva Investors has added a fixed income vehicle to its multi-strategy AIMS range, managed by global head of fixed income Dan James and team.
The AIMS Fixed Income fund will invest in a portfolio of between 25 to 35 strategies, split into three categories: market strategies, opportunistic strategies and risk-reducing strategies.
Its managers are unconstrained in their approach and will be able to utilise the full fixed income universe, as well as derivatives.
The team will seek portfolios with an emphasis on absolute risk-adjusted returns, rather than a benchmark-relative approach.
Global head of fixed income James will run the fund with James McAlevey, senior portfolio manager, Orla Garvey, senior portfolio manager, and Joubeen Hurren, portfolio manager, with further support from the global fixed income team.
The bond mandate will join the group's £1.7bn Target Income fund and the £3.1bn Target Return funds in the multi-strategy range.
James said: "Falling interest rates over the last 25 years have created a tailwind for fixed income returns, which is unlikely to be repeated over the next five or ten years. By taking an unconstrained approach and investing in a diversified portfolio, the AIMS Fixed Income fund has the flexibility to ensure risk is adequately rewarded by an appropriate return."
Euan Munro (pictured), chief executive at Aviva Investors, added: "We continue to see strong demand for solutions that deliver the outcomes that matter most to clients, which is reflected by the positive inflows to our AIMS Target Return and Target Income funds this year.
"The launch of AIMS Fixed Income reflects a natural evolution of the range and offers investors liquid and cost-effective access to the full fixed income universe in one strategy."
The fund will initially be available in three institutional share class formats: euro, sterling (hedged) and US dollar (hedged) versions with a 0.35% AMC.
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