Aviva Investors, the fund management arm of insurer Aviva, has launched a Global Equity Endurance fund.
Review
Managed by former Artemis fund manager Giles Parkinson, with help from global equity managers Richard Saldanha and Helen Driver, the low-turnover fund is a Luxembourg-domiciled Sicav with a US dollar base currency. A sterling share class is set to follow.
With a view to achieving stable returns over a long-term period, the fund will hold stocks for five years, with the option of expanding beyond this period “indefinitely” due to the enduring nature of the shares in question.
The fund is unrestricted in terms of its investment universe, so it provides scope for investments across various sectors and geographical listings.
It will invest in around 20 to 40 stocks, with a 1.5 per cent annual management charge for the retail share class and 0.75 per cent for the institutional share class.
www.uk.avivainvestors.com
Comment
Global equity funds have seen strong sales over the past few months, in part because investors are beginning to recognise the importance of diversifying their asset bases.
Prompted by the weakness of the pound, which has boosted returns from funds invested overseas, UK investors have began to withdraw from UK equity products, which saw outflows of £888m in October.
In contrast, global funds saw inflows of around £582m that month.
As such, investment opportunities like the Global Equity Endurance fund, which will invest in mid and large-cap companies with high growth potential, present promising prospects for UK investors.
Fund manager Mr Parkinson says he will veer towards US and emerging markets for investment opportunities, mostly due to the fact they offer wider access to companies with a larger market cap than their UK equivalents.
The long-term time horizon of the fund should be welcomed by advisers, but Mr Parkinson is somewhat unproven. He joined the firm in 2015 having previously worked alongside William Littlewood on Artemis Strategic Assets, but this portfolio represents his first lead manager role. Potential buyers will want to keep that in mind before taking the plunge with the product.
