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Aviva Launches UK Absolute Return Fund

Nick Parmee, 26 August 2009

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London-based
Aviva Investors has expanded its UK equity product capability with the launch of the Aviva Investors UK Absolute Return Fund.

The fund, to be managed by Julius Lipner, aims to offer investors the potential for consistent positive returns over the medium to long term with relatively low associated risk compared to an investment in the FTSE All Share Index.

Mr Lipner will use long and synthetic short positions to generate fund performance and will invest primarily in equities and equity-related securities of UK companies.

The fund sits within the Aviva Investors OEIC range. It has UCITS III status and carries an annual management charge of 1.5 per cent with a five per cent initial charge and a performance fee of 15 per cent above a high-water mark. 

John Clougherty, chief executive, Aviva Investors UK Fund Services, said:  “There has been much discussion around the absolute return sector and what the funds are delivering to investors. Given the wave of recent launches, it is key that investors and their advisors understand the investment process underlying each fund so that they can draw their own conclusions. Julius has a clearly articulated investment approach which we believe can deliver an ‘absolute return’ in its purest sense.”

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