Aviva Investors Multi-Strategy Target Income fund to close

16 August 2021 - Aviva has announced that it is closing the Aviva Investors Multi-Strategy Target Income fund on 27 September 2021. This is because the fund has reduced in size and, when taking account of the running costs, the company has concluded that it would be in the best interests of investors to close the fund.

The fund has three investment objectives: to provide income, manage volatility and preserve capital. But in a letter to investors, the company said that: "Whilst it has been successful in limiting volatility and providing income to investors, AVIVA Investment Funds believe its ability to preserve capital at the same time has been challenging".

The letter also stated that the fund has experienced significant outflows this year, with "additional assets at risk of redemption".

"If these assets were also to redeem, this will reduce the fund to a size that Aviva believe will no longer be able to achieve the efficiencies and economies with collective investment schemes," the letter said.

Investors in the fund can take action before 27 September if they wish, by either redeeming their investment or switching to another fund. If no action is taken, the units will be sold and held in cash for investors.