CHICAGO and HARTFORD, Conn., Jan.
22, 2015 /PRNewswire/ -- Aviva Investors, the global
asset management business of Aviva plc, and Virtus Investment
Partners, Inc. (NASDAQ: VRTS), which operates a multi-manager asset
management business, today announced they will collaborate on
developing open-end mutual funds for the U.S. retail market that
utilize Aviva Investors' distinctive multi-strategy and
outcome-oriented investment expertise.
Virtus will provide Aviva Investors' strategies on an exclusive
basis in U.S. open-end mutual funds, beginning with the Virtus
Multi-Strategy Target Return Fund1, a new global
tactical asset allocation fund for which Aviva
Investors2 will be the subadviser.
Euan Munro, Chief Executive at
Aviva Investors, and George R.
Aylward, President and Chief Executive Officer of Virtus,
said the agreement allows the companies to leverage Aviva's
extensive investment capabilities, particularly its disciplined,
transparent approach to creating consistent and explainable
performance, and Virtus' product development expertise and its
consultative approach to partnering with financial
intermediaries.
"Our companies share a similar commitment to developing and
offering innovative investment options by focusing on client
outcomes," Munro said. "At Aviva Investors, we begin by carefully
understanding a client's investment objectives and then using a
collaborative approach to develop a well-managed portfolio. The
Virtus team understands and values this process, and they have been
successful in the U.S. marketplace because they know how to
effectively articulate sophisticated investment strategies to
financial advisors and their clients."
Aylward said that when Virtus introduces new investment
solutions for the mutual fund market, the company seeks
differentiated strategies from high-quality investment managers.
Aviva Investors' extensive investment capabilities, which include
fixed income strategies, global equities, real estate,
infrastructure, and multi-asset portfolios, in developed and
emerging markets, makes the company uniquely qualified to manage
the new multi-strategy target return fund.
"We are excited by the opportunity to provide compelling
solutions for financial advisors that utilize Aviva Investors'
broad outcome-oriented capabilities," Aylward said. "We are
particularly pleased to work with Euan, who has been a pioneer in
the development of liquid multi-strategy investment solutions."
Munro, who has more than 20 years of investment experience,
previously was global head of multi-asset investing and fixed
income strategies for Standard Life Investments, where he led the
development of the Global Absolute Return Strategies.
The first offering in the companies' relationship, the Virtus
Multi-Strategy Target Return Fund, is intended to address
substantial investor interest in outcome-oriented solutions. The
fund will seek to achieve a long-term total return target by
employing a fundamental research strategy to construct an
unconstrained portfolio of global equities, bonds and derivatives,
which provide efficient exposure to the target market
opportunities.
Aviva Investors' asset allocation process employs a
contribution-to-risk approach that utilizes both quantitative risk
modeling and a qualitative assessment to make portfolio allocations
that reflect the team's view of long-term fundamental
opportunities, substantial market dislocations, and opportunities
to reduce overall portfolio risk.
Aviva Investors introduced the multi-strategy approach in the UK
on July 1, 2014 and has since
gathered more than $700 million in
assets as of December 31, 2014.
Virtus has filed a registration with the U.S. Securities and
Exchange Commission for the Virtus Multi-Strategy Target Return
Fund. The fund is expected to be available to investors in the
second quarter of 2015, subject to regulatory approval.
Aviva Investors
Aviva Investors is the global asset management business of Aviva
plc. The business delivers investment management solutions and
services to clients worldwide. Aviva Investors operates in 15
countries in Asia Pacific,
Europe, North America and the United Kingdom with assets under management of
$400 billion as of September 30, 2014.
Virtus Investment Partners
Virtus Investment Partners (NASDAQ: VRTS) is a distinctive
partnership of boutique investment managers singularly committed to
the long-term success of individual and institutional investors.
Virtus offers access to a variety of investment styles across
multiple disciplines to meet a wide array of investor needs, and
provides products and services through affiliated managers and
select subadvisers, each with a distinct investment style,
autonomous investment process and individual brand. Its affiliated
managers include Cliffwater Investments, Duff & Phelps
Investment Management, Euclid Advisors, Kayne Anderson Rudnick
Investment Management, Kleinwort Benson Investors
International,Newfleet Asset Management, Newfound Investments,
Rampart Investment Management and Zweig Advisers.
1 A registration statement relating to the
Virtus Multi-Strategy Target Return Fund has been filed with the
Securities and Exchange Commission. The fund may not be sold until
the registration statement becomes effective. Investors should
carefully consider the investment objectives, risks, charges, and
expenses of any Virtus Mutual Fund before investing. The prospectus
and summary prospectus, when available, will contain this
information.
Fund Risks. Equity Securities Risk. The risk that
events negatively affecting issuers, industries or financial
markets in which the fund invests will impact the value of the
stocks held by the fund and thus, the value of the fund's shares
over short or extended periods. Investments in a particular style
or in small or medium-sized companies may enhance that risk.
Credit Risk. The risk that the issuer of a security
will fail to pay interest or principal in a timely manner, or that
negative perceptions of the issuer's ability to make such payments
will cause the price of the security to
decline. Interest Rate Risk. The risk
that when interest rates rise, the values of the fund's debt
securities, especially those with longer maturities, will fall.
Derivatives Risk. The risk that the fund will incur a
loss greater than the fund's investment in, or will experience
greater share price volatility as a result of investing in, a
derivative contract. Derivatives may include, among other things,
futures, options, forwards and swap agreements and may be used in
order to hedge portfolio risks, create leverage, or to attempt to
increase yield. Foreign Investing Risk. The risk that
the prices of foreign securities in the fund's portfolio will be
more volatile than those of domestic securities, or will be
negatively affected by currency fluctuations or economic, political
or other developments.
Virtus Mutual Funds are distributed by VP Distributors,
LLC, member, FINRA, and subsidiary of Virtus Investment
Partners, Inc.
2 The name "Aviva Investors" as used in this press
release refers to the global organization of affiliated asset
management businesses operating under the Aviva Investors name.
Each Aviva Investors affiliate is a subsidiary of Aviva plc, a
publicly-traded multi-national financial services company
headquartered in the United
Kingdom. Aviva Investors Americas LLC ("AIA") is the US SEC
registered investment advisor and the named sub-advisor to the
Virtus Multi-Strategy Target Return Fund.
The information and opinions contained in this document are for
use by the financial press and media only, and do not purport to be
full or complete. No reliance may be placed for any purpose on the
information or opinions contained in this document nor should they
be seen as advice.
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SOURCE Virtus Investment Partners, Inc.; Aviva Investors