Global equities provide strong long-term protection against inflation
Inflation erodes the value of cash in the bank, whereas investing can increase the spending power of your money over time.
- Between 2008 and 2022 – the average global inflation rate was 2.6%1.
- Client’s over the same period, the average annual return for the MSCI World was 7.1%2.
Investing in global equities can offer the best way to protect your client’s money from inflation.
Aviva offers one of the widest ranges of Global Equity Funds
In 2022, Aviva launched the Global Leaders Fund and the Global Equity ESG Passive Fund. We now offer one of the market’s most comprehensive global equity ranges. The following table compares the options available through Aviva’s savings, investments and pension products.
Aviva’s Global Equity Range – choice across Fund Managers, investment styles, market cap exposure and ESG approaches
| Aviva Managed Global Equity Fund | Externally Managed Global Equity Funds | |||||
| Fund | High Yield Equity | Global Leaders | Global Equity ESG Passive | Stewardship Ethical Equity | Global Smaller Companies Equity | Global Mid-Cap Equity |
| Managed by |  |  |  | |||
| Annual Management Charge | Standard | Standard -0.05% | Standard + 0.25% | |||
| Risk Rating (30 June 2023) | 6 | |||||
| Investment Style | Active – High conviction income focused with a target of delivering an income yield of 125% of the index.Invests in Companies that pay out cashflow in the form of dividends. | Active – high conviction focused on companies regarded as leading in their respective markets. Invests in Companies that can re-invest cash flow for future growth. | Passive – aims to track the MSCI World Index with an ESG overlay to ensure it provides a higher ESG score and lower carbon emissions while minimising tracking error. | The strategy seeks to actively invest in companies that stand to benefit from or substantially contribute to trends in sustainable development. ESG considerations are embedded throughout the fund’s investment process. | Active – quality, growth and momentum bottom-up equity research. | Active – quality, growth and momentum bottom-up equity research. |
| Market Cap focus | Large and mid-cap | Large and mid-cap | Large and mid-cap | Large and mid-cap | Small-caps | Mid-caps |
| Benchmark | MSCI ACWI | MSCI ACWI | MSCI ACWI | MSCI World NR | MSCI AC World Small Cap Index | MSCI ACWI Mid-Cap Index |
| The target number of stocks | 37-45 | 20-40 | 1,200-1,600 | 40-60 | 40-80 | 40-70 |
| Tracking error range | 2-6% | 3-8% | 0-1% | No explicit limit | 3-10% | 4-10% |
| SFDR Designation | Article 8 | |||||
| ESG Approach | Proactive voting, exclusion, and engagement policies | Avoid* Emphasise the positive* Drive improvement* | Proactive voting, exclusion, and engagement policies | |||
*The Stewardship Ethical Fund: Avoids companies with damaging or unsustainable business practices. Invests in companies that make a positive contribution to society and/or the environment. Improve: The investment team use their influence as an investor to encourage best practice management of ESG issues through engagement and voting.
Strength across the board – Gross Performance to 01 January 2024
| 1 Month | 6 Months | 1 Year | 3 Years Ann | 5 Years Ann | 10 Years Ann | |
| High Yield Equity3 | 2.7% | 6.2% | 21.4% | 16.3% | 15.9% | 12.3% |
| Global Leaders Equity4 | 2.3% | 4.4% | 14.1% | 9.9% | 14.8% | — |
| Stewardship Equity3 | 4.6% | 4.0% | 10.5% | 5.7% | 13.2% | 11.4% |
| Global Small Companies3 | 7.2% | 0.8% | 6.4% | — | — | — |
| Global Mid-Cap Equity3 | 5.0% | 5.7% | 8.5% | — | — | — |
| Global Eq ESG Passive5 | 3.6% | 6.1% | 18.8% | 11.0% | 13.8% | 11.2% |
Learn more
John Deehan,
Investment Sales Manager
Aviva Life & Pensions Ireland DAC
1. Source: IMF (International Monetary Fund). Based on Yearly global core consumer price index inflation from 2008 – 2022.
2. Source: Longboat Analytics. Based on the performance of the MSCI World AC
3. Unless otherwise stated, the source of performance numbers quoted is Longboat Analytics to 01January 2024. Performance is quoted gross of fees.
4. Source: Aviva Investors to 01 January 2024. The returns quoted are those of the underlying Fund and are in Euro. As such, these returns do not represent the returns on insurance contracts linked to these Funds. Details of all charges for a particular product are available on request.
5. Source: Aviva Investors, data as of 01 January 2024, data is back tested using regional index returns rebalanced on a calendar quarterly basis, returns are gross of management fees.
Warning: Past performance is not a reliable guide to future performance.
Warning: The value of your investment may go down as well as up.
Warning: If you invest in this product you may lose some or all of the money you invest.
Warning: The income you get from this investment may go down as well as up.
Warning: These funds may be affected by changes in currency exchange rates.
Where back tested numbers are used:
Warning: These figures are estimates only. They are not a reliable guide to the future performance of your investment.