Aviva Investors has launched its multi-strategy target return private pooled fund in Canada and partnered with OPTrust, which has made the first investment into the fund.
The fund, which targets an annual gross return of five per cent above the Bank of Canada’s overnight rate over rolling three-year periods, is designed to meet the needs of large pension plans, which are increasingly looking for ways to manage market volatility while aiming to achieve a specific investment outcome, such as growth or income, according to a news release from Aviva Investors.
“From our conversations with investors, we find that they are increasingly looking to achieve specific outcomes, such as growth or income without the constraints of a benchmark, while managing market volatility,” said Jean-François Milette, head of Canadian sales at Aviva Investors. “We are excited to offer this fund in Canada and pleased to embark on this significant partnership with OPTrust.”
Read: OPTrust’s Hugh O’Reilly named industry leader of the year
“We have high expectations for both investment performance and thought-partnership from this strategic relationship,” said James Davis, OPTrust’s chief investment officer. “Pensions everywhere are facing dual risks of higher volatility and lower returns, making it increasingly challenging to manage assets and liabilities. At OPTrust, we believe in continually innovating and sourcing the best talent both internally and externally, to generate strong returns in order to keep our pension promise of paying pensions today and preserving pensions for tomorrow.”
Read: OPTrust executives in Washington to promote Canadian pension model