Notification of changes to the underlying fund of Aviva Multi-Strategy Target Return Funds

17 Feb 2023

We have been notified by the Board of Directors of Aviva Investors (the “Company”) of the following upcoming changes to the Aviva Investors Multi-Strategy Target Return Fund which is the underlying fund ("the Underlying Fund") of the below  ILP sub-funds. These changes will take effect from 17 March 2023 (the “Effective Date”).  The changes will, therefore, also apply to the ILP sub-funds:

1. R181 Aviva Investors Multi-Strategy Target Return (USD HDG)
2. R182 Aviva Investors Multi-Strategy Target Return (EUR)
3. R183 Aviva Investors Multi-Strategy Target Return (SGD HDG)
4. R198 Aviva Investors Multi-Strategy Target Return (GBP HDG)

Amendment of investment policy
The Underlying Fund currently invests up to 5% of total net assets in asset-backed securities and mortgage-backed securities (“ABS/MBS”). The Company has advised that the investment policy of the Underlying Fund will be amended in order to increase the exposure to ABS/MBS up to 10% of total assets from the Effective Date. Please refer to the Appendix in the client communication opposite for full details of the amendment. 

Derivatives and techniques
From the Effective Date, the “Derivatives and Techniques” section of the Prospectus of the Underlying Fund will be updated in order to reflect the use of interest rate swap strategies. Please refer to the Appendix in the client communication opposite for full details of the amendment. 

Expected level of leverage
From the Effective Date the expected level of leverage of the Underlying Fund will be increased from 700% to 1200% of the Net Asset Value (“NAV”) of the Underlying Fund, although it is possible that this level may be higher from time to time. Full details of the amendment can be found in the Appendix in the client communication opposite.

The Company has stated that the increase of expected level of leverage of the Underlying Fund will allow access to strategies that help the Investment Manager deliver the investment strategy, by facilitating alpha generation and increasing portfolio diversification. It is not anticipated that the volatility of the Underlying Fund will increase as a result of this change, nor will the risk profile be affected.

More details of the changes can be found in the sample client communication notification opposite, which has been issued by email or post to impacted policyholders.

Should you have any questions regarding these changes, please contact the Investment Marketing Team.