Aviva Investors Multi-asset Core IV Class 2 Acc

March 2026

Overview

The fund aims to provide capital accumulation over the medium to long-term whilst managing the overall level of volatility relative to global equities. In practice the managers' target an annualised return, net of fees, of 0.15% ahead of the performance benchmark, measured over 3-year rolling periods along with an average volatility of 75% of the volatility of global equities.

Square Mile’s Expected Outcome

We believe a return in line with its composite benchmark whilst maintaining a volatility of around 75% of global equities over rolling 3-year periods is a reasonable expectation.

Square Mile’s Opinion

The Aviva Multi-Asset Core Funds (MAF Core) are a range of five low-cost strategies investing across a number of different asset classes, including global equities, global corporate and sovereign bonds, spanning a broad range of different investor risk profiles. The managers use an ESG overlay when selecting developed market global companies and sovereign issuers such that the expectation is that these allocations will have a better ESG score relative to the ESG score of the underlying markets. We believe this combination of low-cost and ESG integration, via the group's proprietary tools, ‘ESG Elements' and ‘ESG Sovereign Monitor', differentiates this range from many competitors and is likely to appeal to investors wanting both attributes from their investment. We should point out that we do not see this as a ‘Responsible' fund as we don't believe it meets the criteria, however it does have ESG firmly embedded within the investment process. Our expectation is that the improvement in ESG score compared to the underlying markets is only likely to be modest given how the fund is constructed.

We think that AI's strategic asset allocation framework is robust and has been honed over the years from their heritage within the insurance space. Notable on this range, and unlike some peers, they do not have a UK bias. This means the portfolio will benefit from stronger growth within international markets compared to the UK. Aviva's heritage in responsible investing and the direction of travel for the business gives us confidence to believe they will continue to appropriately resource and support this range in the future.

Fund Manager’s Formal Objective

The Fund aims to grow your investment over the long term (five years or more) through a combination of income and capital growth. The Fund targets an overall average return before charges and taxes of at least 0.30% greater than the performance benchmark per year, measured over three-year rolling periods. The Fund aims for an average volatility of 75% of the volatility of global equities.

Outcome: Capital Accumulation	Domicile: UK
Active/Passive: -	Benchmark: 75% MSCI ACWI & 25% Bloomberg Barclays Global Aggregate Bond Index
Asset Class: Multi Asset	IA Sector: IA Volatility Managed
Yield: 1.46%	Fund size: £511M
Fund Manager: Dean Cook, Sotirios Nakos	Distribution Pay Date: April, October
Fund Price: 1.5 Pounds	Dividend Frequency: Semi-annual
Currency of Share Class: GBP	Share Class Launch Date: 30/11/2020
NAV: 1.5 Pounds	Year end: 31/08/2025
Discount/Premium: 0.00%	Gearing: -
Permission to distribute from Capital: -	Fees charged: -

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Aviva Investors Multi-asset Core IV Class 2 Acc

Asset Manager Overview

Aviva Investors is a global asset manager that combines an insurance heritage, investment capabilities and sustainability expertise. They manage investments across a broad range of asset classes, but over recent years have refocused the business around sustainable outcomes across core equity markets as well as multi-asset solutions.

Fund Manager/Team Overview

This fund is managed by the multi-asset team within Aviva Investors. Lead managers on the fund are Sotirios Nakos and Dean Cook and they draw on the support of the wider multi-asset team which consists of over 50 investment professionals.

Investment Philosophy & Process Overview

The fund will invest in a range of asset classes in order to meet its risk and return objectives. Exposure to each asset class will be determined annually based on the team's strategic review of the risk and return potential for each asset class. Given the low-cost approach of the fund, its investible universe is more limited than many other multi-asset funds, with the managers only currently able to invest within the following asset classes; global equity, global emerging market equity, global sovereign bonds, global investment grade bonds, global high yield bonds and emerging market hard, local and corporate debt. Their expectations for these asset classes are modelled and optimised to build a strategic asset allocation which over the long-term aims to provide a superior return profile compared to the benchmark whilst keeping volatility close to 75% of the MSCI ACWI Index. The managers will not generally apply any changes to the shape of the portfolio between their annual review.

The team deliberately structure the fund such that it will be global in nature and market cap aware and therefore it will have a low allocation to UK listed companies. Whilst the fund will have a low allocation to the UK the managers actively manage the currency exposure of the fixed income portfolio such that it is hedged back to sterling. The equity portfolio will not be actively currency hedged. The fund will hold a range of AI funds, AI managed segregated mandates and derivatives to fulfil the asset allocation, thus ensuring costs are kept low. Most of the underlying investments will be systematically managed and have ESG integrated into the investment process. This integration of ESG and Aviva Investors base line exclusion policy seeks to ensure that the fund will have a better ESG score relative to the ESG score of the underlying markets.

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Aviva Investors Multi-asset Core IV Class 2 Acc

ESG Integration

Fund ESG Integration

The fund employs a limited number of exclusions based on Aviva Investors' UK Responsible Investment (RI) policy framework. This includes but is not limited to companies involved in weapons/arms, thermal coal, arctic oil and oil sand and tobacco. These screens are subject to revenue thresholds. Aviva Investors will also divest from companies which they consider to have not met the principles set out in the UN Global Compact (UNGC) and have not implemented an appropriate remediation plan within an acceptable timeframe.

AI have a proprietary ESG model that has been developed in conjunction with Aviva Quantum, their parent company's global data science practice. The model called “ESG Elements” generates scores for around 30,000 securities, tailored by sector and linked to financial market performance. They use a quantitative approach to select ESG related features that have a proven correlation with future returns. The underlying data the model uses comprises MSCI Environment, Social and Governance pillar scores and Accounting and Governance (AGR) scores, as well as their own proprietary voting records, with weightings of 50%, 30% and 20% assigned to each category respectively. Company scores are adjusted to make the model's output sector neutral. This improves comparability, enabling users to easily find the best or worst companies in any given sector. For example, if a user decided to filter out all companies with an ESG Elements score below 2, they would not automatically reject all companies in the energy sector. Adjustments are also made for company size and regional exposure.

The government bond portion of the portfolio also integrates ESG factors into its process. Sovereign ESG integration incorporates a quantitative and qualitative approach in considering ESG and sustainability factors. On the quantitative side, they utilise a proprietary ESG monitoring tool, the 'ESG Sovereign Monitor', to assign a composite ESG score to 176 sovereign debt issuers. The ESG score for a country is derived from over 400 underlying data points that form 11 headline composite indicators. In addition, their ESG analyst team supplements the ESG data scores with qualitative commentary and forward-looking insights on a core group of developed and emerging-market issuers, conducting research into ESG performance in real-time and identifying countries that are likely to be positively or negatively re-rated.

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Aviva Investors Multi-asset Core IV Class 2 Acc

Risk Summary

Whilst the aim of the fund is to control the overall level of risk, investors should be aware that it will not be immune to capital drawdowns. The fund targets a return ahead of the composite benchmark over the medium-term and our expectation is that its return will be similar to that of the benchmark as the managers employ a low tracking error approach relative to it. However, the fund will hold asset classes which are not part of the benchmark as well as exclude some companies and sovereigns from the investible universe. Therefore there may be times when its performance differs more markedly from the benchmark, both on the upside and downside. The managers make use of financial derivatives to gain exposure to global investment grade credit and emerging market equities. There is the potential that, at times, these instruments may not always respond in the way they were intended and therefore this could cause the fund's performance to deviate from its benchmark.

Additional Information

Annualised Return: 11.20%

Annualised Volatility: 9.34%

Max Drawdown: -11.98%

Max Gain: 6.09%

Max Loss: -7.28%

Sharpe Ratio: 1.06

Sortino Ratio: 0.94

(3 years data to last month end unless otherwise stated)

Qualitative Risk Assessment

	Significant	Potentially Significant	Not Significant
Equity Risk
Interest Rate Risk
Credit Risk
Exchange Rate Risk
Liquidity Risk
Emerging Markets Risk
Derivative Risk
Manager Risk
Gearing Risk
Discount/Premium Risk

For the full summary of the risks, click here

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Aviva Investors Multi-asset Core IV Class 2 Acc

3 Year Rolling Sector Outperformance

Maximum Drawdown (Rolling 12 Months)

Calendar Year Performance To Quarter End

Period	Fund (%)	Sector (%)
2025	11.2	11.0
2024	15.0	8.0
2023	11.5	8.6
2022	-8.9	-9.9
2021	14.1	9.1

Value for Money

The fund's OCF and total cost of investment (TCI) are beneath the median for its passive peer group and it is one of the lowest cost funds in the market. We believe the fund represents very good value for money when you consider the managers employ a level of active management and have a good level of ESG integration within the investment process.

OCF v Peer Group

0.15%

Transaction Costs v Peer Group

0.03%

TCI v Peer Group

0.18%

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Aviva Investors Multi-asset Core IV Class 2 Acc

Rating Changes

The Square Mile ratings are reviewed every 6 months. For full details on the methodologies, click here.
For a full list of all Square Mile rated funds, click here.

Rating Changes over last 12 months	Time & Date rating changed

Disclaimer

This document is issued by Square Mile Investment Consulting and Research Limited which is registered in England and Wales (08791142) and is a wholly owned subsidiary of Titan Wealth Holdings Limited (Registered Address: 101 Wigmore Street, London, W1U 1QU).

Unless otherwise agreed by Square Mile, this factsheet is only for internal use by the permitted recipients and shall not be published or be provided to any third parties. This factsheet is for the use of professional advisers and other regulated firms only and should not be relied upon by any other persons. It is published by, and remains the copyright of, Square Mile Investment Consulting and Research Ltd (“SM”). SM makes no warranties or representations regarding the accuracy or completeness of the information contained herein. This information represents the views and forecasts of SM at the date of issue but may be subject to change without reference or notification to you. SM does not offer investment advice or make recommendations regarding investments and nothing in this factsheet shall be deemed to constitute financial or investment advice in any way and shall not constitute a regulated activity for the purposes of the Financial Services and Markets Act 2000. This factsheet shall not constitute or be deemed to constitute an invitation or inducement to any person to engage in investment activity. Should you undertake any investment activity based on information contained herein, you do so entirely at your own risk and SM shall have no liability whatsoever for any loss, damage, costs or expenses incurred or suffered by you as a result. SM does not accept any responsibility for errors, inaccuracies, omissions, or any inconsistencies herein. Unless indicated, all figures are sourced by LSEG Lipper (all rights reserved). Past performance is not a guide to future returns.

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