Asset classes

A market directional approach investing in Pan-European Blue Chip Equities using Sustainable and Responsible Investment themes. The fund aims to protect capital through portfolio optimisation, risk modelling and liquidity management techniques.

Investment approach and strategy

The aim of the fund is to achieve a positive return under all market conditions. The fund will take exposure predominantly to pan-European equity securities, mainly through the use of financial derivative instruments.

The fund focuses on the prospects of individual companies. The ability to identify under- or over-valued investments depends upon having a better understanding of companies’ future profit streams than the rest of the market. The market regularly misinterprets and under-estimates the impact of SRI-related themes and events on future profitability, providing Aviva Investors SRI specialists with multiple sources of research-driven investment opportunities.

Fund at a glance

• Aims to achieve positive returns in all market conditions
• Style agnostic, long short equity, pan European focus
• Market directional rather than market neutral with an appetite for risk
• Large cap bias with high level of liquidity (90% of NAV can be liquidated in one day)
• Seeks to benefit from sustainable development themes and avoid the pitfalls of unsustainable companies

Portfolio applications outside traditional SRI investing

The fund offers a stand-alone SRI-focused equity fund with low volatility and can widen the alpha and beta opportunities available to SRI investors. However it can also offer diversification for balanced portfolios or portfolios comprising other absolute return strategies, providing a means of risk/return optimization and the opportunity to diversify investment styles and return sources through low-volatility exposure to sustainable development themes.