Aviva Investors adds to LTAF range with conversion of pioneering Climate Transition Real Assets Fund

20 March 2024

(London) – Aviva Investors, the global asset management business of Aviva plc, announces it has brought a further Long Term Asset Fund (LTAF) to the UK institutional and wealth market, successfully converting its Climate Transition Real Asset Fund (CTRAF) to sit under the new regime which has been designed to invest more efficiently in long-term assets.

It is the second LTAF offered by Aviva Investors and follows the launch of its Real Estate Active LTAF (REALTAF) in May 2023, which at the time was the largest such fund brought to market. REALTAF applies an ‘active equity’ real estate investment strategy developed by Aviva Investors, characterised by a preference to invest in high-conviction locations and emerging themes.

CTRAF, which was originally launched by Aviva Investors in 2021, provides investors with access to climate transition focused solutions across the breadth of European Real Assets, targeting opportunities in direct investments in real estate, infrastructure and nature based solutions which can accelerate, and benefit from, the transition to a low-carbon economy.

Last month, Aviva Investors launched the sixth edition of its annual ‘Real Assets Study’, which showed 69 per cent of corporate defined contribution (DC) pension funds expect to increase allocations to real assets over the next two years, with 17 per cent of all respondents citing sustainability-related factors as being a critical and deciding factor in real assets investment decisions.

Daniel McHugh, Chief Investment Officer at Aviva Investors, commented:

“We are very pleased to offer a further LTAF product to the UK institutional and wealth market, building on the successful launch of our Real Estate Active LTAF in 2023. As one of the UK’s largest investors in real estate and infrastructure, we remain committed to our belief that sustainability can drive long-term performance for real assets portfolios. Our research shows investors are looking for access to investments that deliver long-term performance whilst being aligned with net zero commitments. By converting our Climate Transition Fund to an LTAF structure, we believe we have a product that is market-leading in both those areas, providing opportunities to invest in exciting growth sectors which support the UK economy and its transition towards net zero, whilst maximising the investment outcomes of people saving for retirement.”

Jill Barber, Global head of Distribution at Aviva Investors, added:

“We have a very clear ambition to offer our clients better access to illiquid assets and believe this innovative fund structure will further that goal. We aspire to be the go-to LTAF provider for the UK’s DC and wealth markets by providing a comprehensive suite of funds that reflect feedback and demand from clients for greater access to the full breadth of real assets investment strategies.”

For more information contact:

Steve Ainger

Head of Media Relations

James Morgan

Media Relations Manager

Important information

Key Risks

The value of an investment and any income from it can go down as well as up and can fluctuate in response to changes in currency exchange rates. Investors may not get back the original amount invested. Where funds are invested in real estate / infrastructure, investors may not be able to switch or cash in an investment when they want because real estate/infrastructure may not always be readily saleable. If this is the case we may defer a request to switch or cash in shares or units. Investors should also bear in mind that the valuation of real estate is generally a matter of valuers’ opinion rather than fact.

Sustainable Investing Risk

The level of sustainability risk to which the Fund is exposed, and therefore the value of its investments, may fluctuate depending on the investment opportunities identified by the Investment Manager.

The information and opinions contained in this document are for use by the financial press and media only. No reliance may be placed for any purpose on the information or opinions contained in this document nor should they be seen as advice.

The press release is provided on the basis that Aviva Investors Global Services Limited is not causing the communication of a financial promotion under exemption of the Financial Promotion Order, as Aviva Investors Global Services Limited has no control over the way in which an article based on this press release is prepared and published by the financial press and media.

Except where stated as otherwise, the source of all information is Aviva Investors Global Services Limited (“Aviva Investors”) as 21 September 2023. Unless stated otherwise any views, opinions expressed are those of Aviva Investors. They should not be viewed as indicating any guarantee of return from an investment managed by Aviva Investors nor as advice of any nature. The value of an investment and any income from it may go down as well as up and the investor may not get back the original amount invested.

Issued by Aviva Investors Global Services Limited, registered in England No. 1151805. Registered Office: St Helen’s, 1 Undershaft, London, EC3P 3DQ. Authorised and regulated by the Financial Conduct Authority.

Aviva Investors

Aviva Investors is the global asset management business of Aviva plc. The business delivers investment management solutions, services and client-driven performance to clients worldwide. Aviva Investors operates in 14 countries in Asia Pacific, Europe, North America and the United Kingdom with £218 billion in assets under management as at 30 June 2023..

AVIVA PLC

Notes to editors:

·        We are one of the UK’s leading Insurance, Wealth & Retirement businesses and we operate in the UK, Ireland and Canada. We also have international investments in India, China and Singapore.

·        We help our 18.7 million customers make the most out of life, plan for the future, and have the confidence that if things go wrong we’ll be there to put it right.

·        We have been taking care of people for more than 325 years, in line with our purpose of being ‘with you today, for a better tomorrow’. In 2022, we paid £23.2 billion in claims and benefits to our customers.

·         Aviva is a market leader in sustainability. In 2021, we announced our plan to become Net Zero by 2040, the first major insurance company in the world to do so. This plan means Net Zero carbon emissions from our investments by 2040; setting out a clear pathway to get there with a cut of 25% in the carbon intensity of our investments by 2025 and of 60% by 2030; and Net Zero carbon emissions from our own operations and supply chain by 2030.  Find out more about our climate goals at www.aviva.com/climate-goals and our sustainability ambition and action at www.aviva.com/sustainability

·         While we are working towards our sustainability ambitions, we acknowledge that we have relationships with businesses and existing assets that may be associated with significant emissions. More information can be found at https://www.aviva.com/sustainability/climate/

·         Aviva is a Living Wage and Living Hours employer and provides market-leading benefits for our people, including flexible working, paid carers leave and equal parental leave. Find out more at https://www.aviva.com/about-us/our-people/

·         As at 31 December 2022, total Group assets under management at Aviva Group were £352 billion and our estimated Solvency II shareholder surplus is £8.7 billion. Our shares are listed on the London Stock Exchange and we are a member of the FTSE 100 index.

·         For more details on what we do, our business and how we help our customers, visit www.aviva.com/about-us  

·         The Aviva newsroom at www.aviva.com/newsroom includes links to our spokespeople images,  podcasts, research reports and our news release archive. Sign up to get the latest news from Aviva by email.

·         You can follow us on:

·         Twitter: www.twitter.com/avivaplc/  

·         LinkedIn: www.linkedin.com/company/aviva-plc

·         Instagram: www.instagram.com/avivaplc

·         For the latest corporate films from around our business, subscribe to our YouTube channel: www.youtube.com/user/aviva

 

Aviva Investors Global Services Limited

St Helen’s, 1 Undershaft, London, EC3P 3DQ

Phone          +44 (0)20 7809 6000

Fax                +44 (0)20 7489 7940

Web              www.avivainvestors.com

Email           info@avivainvestors.com

 

Issued by Aviva Investors Global Services Limited, registered in England No. 1151805.

Registered Office: St Helen’s, 1 Undershaft, London, EC3P 3DQ. Authorised and regulated by the Financial Conduct Authority and a member of the Investment Association.

Telephone calls may be recorded for training and monitoring purposes.