Aviva Gestión SGIIC, the management company for collective investment institutions of the Aviva Group, today presented its investment funds to the investor community, including fixed-income and equity funds.
- The Aviva Group company manages €267 million through seven funds
- Aviva Gestión benefits from the synergies of the Group in Spain, which manages €14,000 million including €11,700 million invested in fixed-income securities and €1,200 million in equity.
Aviva Gestión SGIIC, the management company for collective investment institutions of the Aviva Group, today presented its investment funds to the investor community, including fixed-income and equity funds.
This Aviva business unit manages and markets seven investment funds characterised by their specialisation and quality, with a view to maximising profitability in the medium and long term, though always within the defined risk profile.
According to José Caturla, corporate investments director of Aviva in Spain and managing director of Aviva Gestión: “We are long-term investors and our objective is to create value for our customers.”
For him, the first step is to preserve assets: “Capital not only accumulates when it is gained but also when it stops being lost.
“Our investment philosophy is simple: we only invest in things we understand and where we believe we can add value by being flexible and adapting to the conditions of the market. Our products are clear and transparent. We are not concerned about the volume of assets managed but the quality of management we provide to our customers: we invest our money and our partners' money together with our customers' money, so our interests are completely aligned. The two pillars that support our success are the team and the management model.”
The Aviva Gestión Funds: Equity
Aviva Espabolsa FI: the value of the Spanish stock exchange
Aviva Espabolsa is a fund that invests in the Spanish stock exchange. Its investment philosophy involves seeking companies whose intrinsic value is far higher than the share price would indicate. It invests in companies with strong cash flow and highly visible results.
One important criterion to take into account when investing in this fund is the fact that the results of the companies quoted on the Spanish stock exchange – both the Ibex and the rest of the stock market – do not directly reflect the reality of our country's economy, since many of those companies earn a large proportion of their income outside our country.
Similarly, it should be emphasised that some Spanish companies have tended to take better care of their shareholders than their counterparts in other countries.
According to Iván Martín, director of equity: “We invest without speculating or looking for companies that are going to increase in value; we invest in companies whose intrinsic value is higher than their market price and who have a good management team with proven experience. When we make an investment decision, it is vital for us to know the people who run the companies.”
Aviva Eurobolsa FI: an opportunity to select European stocks with high potential
The Aviva Eurobolsa fund invests in assets in the European market with an investment philosophy very similar to that of Espabolsa, seeking companies that offer substantial discounts in relation to their “intrinsic” valuation and organisations that achieve high, stable and growing cash flows.
According to Pablo Cano, equity manager: “It is about analysing not only the companies' financial statements but also the environment in which they operate: we often identify investment opportunities due to anomalies in the market.”
Cano cites the example of the Dutch company Boskalis Nederland, a port and coastal maintenance company that reached its minimum share price (€14) in 2008. The analysis performed by the Aviva management team found that there was a good opportunity to buy and that the company had attractive features, such as its leadership in the sector where it operated and the absence of debt. In 2010, the company's share price reached €34, far closer to its real valuation.
The Aviva Gestión Funds: Fixed income
Aviva Fixed Income FI: value in the bond market
The Aviva Fixed Income fund invests in the Eurozone fixed income market in order to benefit from the opportunities that it offers. In the past it took advantage of the opportunities of the credit market, whilst it now relies on the recovery of spreads in the peripheral countries, particularly Spain, taking account of market factors such as the possible rises in interest rates.
According to José María Lecube, director of fixed income: “The positioning of the fund at this time gives it a good starting point for 2011 to offer attractive returns, thanks to good credit quality as well as the composition of its portfolio, with a high IRR. For an investor relying on the recovery of risk spreads in Spain, this fund represents a very good opportunity.”
Sectoral breakdown of the Aviva Fixed Income fund
The Aviva Gestión Funds: A different idea
Aviva Fonvalor Euro, FI: a new idea for diversifying high-yield assets
The Aviva Fonvalor Euro fund aims to achieve a similar return to the equity funds but with far less volatility.
According to Alfonso Benito, investment manager: “It is a fund that combines shares in companies similar to those described in Espabolsa and Eurobolsa but excluding those of financial institutions, which are replaced by subordinate or hybrid fixed-income assets from banks and insurance companies. It is different to other funds on the market and achieves the best of equity and fixed-income management.”
The Aviva Gestión Funds: A different idea
Aviva Fonvalor Euro, FI: a new idea for diversifying high-yield assets
The Aviva Fonvalor Euro fund aims to achieve a similar return to the equity funds but with far less volatility.
According to Alfonso Benito, investment manager: “It is a fund that combines shares in companies similar to those described in Espabolsa and Eurobolsa but excluding those of financial institutions, which are replaced by subordinate or hybrid fixed-income assets from banks and insurance companies. It is different to other funds on the market and achieves the best of equity and fixed-income management.”
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For more information:
Rosa Mar Mayoral
Telephone: 629 571 746
E-mail: rmayoral@ulled.com
Laura Villuendas
Telephone: 912 971 817 – 696 576 921
E-mail: laura.villuendas@aviva.es
Notes to editors:
Aviva Gestión SGIIC is a management company for collective investment institutions, established in September 2000 and belonging to Aviva Vida y Pensiones.
Aviva manages €14,000 million in Spain, with a team of 14 managers who are highly experienced in industry and within the group.
Aviva is one of the leading insurance groups in the European life and pensions market, with 53 million customers worldwide.
In Spain, Aviva is one of the leaders in the life insurance and pensions sector. It markets its products through professional intermediaries (Aviva Vida y Pensiones) and via strategic alliances (owned 50/50 and managed by Aviva) with some of the main Spanish savings banks (Bancaja, Caixa Galicia, Unicaja, Caja España, CajaGranada and Cajamurcia). www.aviva.es