Aviva Investors has launched its third Long Term Asset Fund (LTAF) with the creation of the Aviva Investors Multi-Sector Private Debt LTAF (MSPD LTAF).
The new fund has received an initial £750m (€899m) of investment capital from Aviva’s My Future Focus default pensions solution, which invests in a broad range of asset classes on behalf of the firm’s range of auto-enrolment defined contribution (DC) default strategies.
Aviva’s newly launched MSPD LTAF is also open for allocations from external investors, with the asset manager saying it expects this latest LTAF to be “particularly appealing to DC pension funds looking to diversify returns from traditional asset classes such as public equity and fixed income”, as well as wider private markets allocations and single private debt strategies.
The manager added that the MSPD LTAF is aiming to produce a diversified portfolio of investments from across the private debt spectrum and a range of sectors, including opportunities in real estate debt, infrastructure debt, structured finance and private corporate debt.
This latest LTAF furthers Aviva Investors’ ambition to be “the go-to LTAF provider for the DC pension fund and wealth markets” in the UK.
It also follows the launch of two LTAFs, the £1.6bn Real Estate Active LTAF in May 2023, which was the largest LTAF brought to market at the time of its launch, and the conversion of the Aviva Investors Climate Transition Real Assets Fund to sit under the new LTAF regime.
The three funds together account for more than £3bn in assets under management, the manager said.
Daniel McHugh, chief investment officer at Aviva Investors, said: “We are pleased to add a dedicated private debt solution to our suite of Long Term Asset Funds, further positioning Aviva Investors as the largest provider of LTAFs for the UK DC and wealth market. Private Debt is a key growth area for us, and we believe our multi-sector approach will best capture relative value through the market cycle.”
Maiyuresh Rajah, director of investments for wealth and advice at Aviva, said: “We are continuing to further diversify our solutions and this investment in private debt is another important step in that process.”
Jill Barber, chief distribution officer at Aviva Investors, added: “The launch of our private debt fund continues our ambition to be the go-to LTAF provider for the UK’s DC and wealth markets, as we create a suite of funds which give access to a range of asset classes and risk-return profiles.
“With more retirement savings represented by DC pension funds which have specific liquidity needs, the emergence of the LTAF regime makes it easier for these investors to allocate more to private markets.”
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