Aviva Emerging Markets Equity Index

The Aviva Emerging Markets Equity Index Fund Series 1 mainly invests in equities of companies included in the MSCI Emerging Markets Index, or in a sample of those companies that is representative of the index. Its aim is to mirror the performance of that benchmark as closely as possible. The fund has exposure across sectors such as information technology, financials, consumer discretionary and communication services.

The Aviva Emerging Markets Equity Index Fund Series 1 is an indexed fund, so it aims to follow the MSCI Emerging Markets Index rather than trying to outperform it. It may hold the companies in the benchmark index directly, or a representative sample of them, depending on what the Investment Manager thinks is the best way to achieve the fund’s outcome. This approach is designed to keep the fund closely aligned with the benchmark’s performance.

The Aviva Emerging Markets Equity Index Fund Series 1 is focused on emerging markets, with geographic exposure including China, Taiwan, South Korea, India and Brazil. Its top holdings include Taiwan Semiconductor Manufacturing, Samsung Electronics, Tencent, SK Hynix and Alibaba. This means the fund is heavily exposed to large companies in Asia as well as other emerging-market regions.

The Aviva Emerging Markets Equity Index Fund Series 1 carries risks including market fluctuations, currency risk, counterparty risk, liquidity risk and derivatives risks. Currency risk means changes in exchange rates can affect returns when the fund invests in assets priced in other currencies. Capital and returns are not guaranteed, so investors could get back less than they invest.

The Aviva Emerging Markets Equity Index Fund Series 1 may suit investors who want broad, low-turnover exposure to emerging-market equities and are comfortable with the ups and downs of that region. Its objective is to track the MSCI Emerging Markets Index, so it may appeal to people looking for market-style returns rather than active stock-picking. Because it invests in emerging markets, it is likely to be more volatile than funds focused on developed markets.