Aviva Investors has launched a long-term asset fund.
Aviva Investors Real Estate Active LTAF is seeded with an initial £1.5bn portfolio of direct real estate assets, which Aviva said would enable a broad range of institutional and professional investors to access real assets investments more easily.
It is the firm’s first fund under the Long Term Asset Fund regime, a new category of fund designed to provide access to long-term private market assets.
Daniel McHugh, chief investment officer, real assets, at Aviva Investors, said: “Real assets are an important element of long-term investment strategies, whether for risk or return diversification, or providing regular, inflation-linked income.
“They are also a vitally important ingredient in the transition towards a just and socially equitable low-carbon future. Yet, until now, a significant portion of the UK’s wealth and pension market – particularly defined-contribution schemes – have not been able to allocate to real assets, and certainly not to the extent they would like.”
He added: “We firmly believe the LTAF regime will have significant benefits for retirement portfolios, helping to improve long-term investment outcomes for our clients and, ultimately, individuals saving for their retirement.”
Pierre Biscay, head of customer investments at Aviva UK Life, said: “Real estate remains a key part of our investment strategy and has delivered excellent value for our customers to date. The launch of REALTAF enables us to continue to access the asset class far into the future under a new and innovative fund structure.”
The new fund will be managed by Tim Russell, senior fund manager at Aviva Investors.
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