Investments  

Aviva Investors to close income funds

Aviva Investors to close income funds

Aviva Investors is to close its £60m Global Cautious Income and £39m Global Balanced Income funds because of fears their income targets could lead to “an inappropriate level of risk” being taken in future.

The products, which are run by co-managers Nicholas Samouilhan and Paul Parascandalo, are to close in August.

A spokesman for the asset manager said: “Over time, we believe it will become increasingly difficult to generate the level of income investors expect without taking an inappropriate level of risk.

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“Consequently we believe it is in the best interest of investors to close the funds. Investors can switch into another Aviva Investors fund with no charge or redeem their investment.”

The Balanced Income offering aims to achieve a target income rate, net of ongoing charges, of 7 per cent or the Bank of England base rate plus 2.5 per cent each year, depending on which is highest.

The Cautious Income fund seeks a target income rate of 5.5 per cent or the base rate plus 1 per cent each year, depending on which is highest.