First quartile performance for MAF Active 3 and 4 in 2025

Can you remind us how the Aviva Investors’ active multi-asset funds work?

The Multi Asset ESG Active Funds are managed using a long-term strategic asset allocation, complemented by tactical asset allocation designed to capitalise on shorter-term market opportunities. The funds also employ active stock and bond selection to enhance performance.

How did the Active Multi-Asset Funds perform in 2025?

In 2025, Aviva Multi Asset ESG Active 3 and 4 were in the top quartile versus risk-targeted peers1 (Active 5: third quartile), while over the longer term, the range is predominantly top quartile on 2–3-year annualised returns1.

Overall, tactical asset allocation contributed positively to performance in 2025. The funds maintained an overweight position in global equities throughout the year, with an emphasis on US, European, and Emerging Market equities, which contributed to performance. The overweight position in gold also proved beneficial, with the precious metal rising more than 45% amid strong central bank demand and concerns about US fiscal sustainability3. Additional successful tactical positions included an overweight in European financials, where strong earnings growth, profitability and low relative valuations played out well for investors in 2025

Active security selection produced mixed results. The lower-risk funds benefited from the Aviva Investors AIMS Absolute Return strategy, which returned more than 7.5% in 20252. However, the High Yield Equity Fund struggled in a market dominated by AI-related technology stocks, which detracted from performance, particularly in higher-risk funds.

What is Aviva Investors’ outlook for markets in 2026?

Aviva Investors expects global growth to strengthen through 2026 as tariff headwinds ease and a supportive combination of easier monetary policy, moderate fiscal measures, rising real incomes, and increased AI-driven investment boosts activity. Inflation is forecast to move closer to central bank targets, allowing most rate-cutting cycles to conclude by mid-year. Some central banks may even shift back toward modest rate hikes later in 2026 if growth accelerates more strongly.

However, several risks could challenge this outlook. These include a sharper-than-anticipated weakening in the US labour market; a renewed rise in inflation driven by tariffs, commodity price increases, or persistent service sector pressures; and the possibility that AI-related investment falls short of expectations. Rapid expansion in private credit and heavy AI-linked debt issuance could put stress on credit markets. Additionally, renewed trade tensions or geopolitical escalation, particularly involving critical resources, may disrupt supply chains and dampen global sentiment.

Despite these risks, the environment remains broadly supportive of risk assets. Aviva Investors maintains a positive view on equities across the US, Europe, and emerging markets. The firm holds a neutral duration stance overall but is bearish on eurozone and Japanese bonds while constructive on UK and Australian duration. In credit markets, the preference is to remain underweight US investment-grade bonds, favour EU over US high yield, and hold a modest USD underweight while favouring emerging-market FX.