Aviva High Yield

The High Yield Equity Fund Series 1 mainly invests in a concentrated portfolio of global equities, with between 37 and 45 companies in the fund. It focuses on cash-generative businesses, strong balance sheets, and companies with a proven track record of growing dividends over time. The fund can also invest up to 10% in non-benchmark stocks.

The High Yield Equity Fund Series 1 aims to grow money through both income and capital growth over the long term. It also aims to deliver an income level equivalent to at least 125% of its benchmark, the MSCI All Country World Index EUR TR. In addition, the manager targets up to 2% excess return over the benchmark.

The High Yield Equity Fund Series 1 is designed for investors with a long-term horizon. Its equity-focused, concentrated approach means returns can fluctuate over time, so it is generally more suited to investors who can stay invested through market ups and downs. The fund also carries risks such as market fluctuations and currency risk, which means exchange-rate moves can affect returns when investments are held in different currencies.

The High Yield Equity Fund Series 1 combines an active, high-conviction stock selection process with ESG considerations built into the investment approach. It is managed by Aviva Investors and the portfolio is relatively concentrated, which means each holding can have a bigger impact on returns than in a wider fund. The fund also seeks income from companies with a history of dividend growth rather than simply the highest current yields.

The High Yield Equity Fund Series 1 is exposed to market fluctuations, so the value of investments can fall as well as rise. It also includes counterparty risk, liquidity risk, derivatives risks, and currency risk; counterparty risk means another party to a transaction could fail to meet its obligations, and liquidity risk means some investments may be harder to sell quickly at a fair price. Capital and returns are not guaranteed.