Aviva Investors expands Climate Transition range with launch of Climate Transition Real Assets Fund

(London) – Aviva Investors, the global asset management business of Aviva plc (‘Aviva’), has announced the launch of the Aviva Investors Climate Transition Real Assets Fund. The fund will aim to provide various investor groups, including defined contribution (DC) schemes, with access to climate-focused solutions across the breadth of the European Real Assets universe - principally direct real estate, infrastructure and forestry assets.

The Climate Transition Real Assets Fund will be managed by a team from across Aviva Investors’ Real Assets platform, utilising underlying investment desks and a robust top down asset allocation process to identify best relative value. The Fund will aim to deliver a net annual return of approximately 8% per annum over rolling five-year periods, whilst targeting net zero by 2040 or sooner.

Aviva Investors has already established a strong pipeline of investment opportunities, as well as a substantial level of investor capital, which the team expects to significantly deploy over the coming 12 to 18 months. The fund has been initially seeded with approximately £425m of investor equity which, combined with the ability to leverage up to 50% of loan to value, will generate approximately £1bn of investment capital to deploy. Opportunities targeted by the fund will be those helping to accelerate, and benefit from, the transition to a low-carbon economy, such as, solar, on-shore wind and the active decarbonisation of inefficient real estate assets.

Daniel McHugh, CIO, Real Assets, at Aviva Investors, said:

“One of our key objectives as a business is to ensure we are delivering the investment products and outcomes that our clients demand. As a committed investor, acting and supporting the transition to a low-carbon and climate-resilient world is not only consistent with our values, it is absolutely in line with what our clients now expect. There is a huge opportunity to drive our physical built environment toward net zero through Real Assets, where significant investment capital and firepower can make a direct and very material impact through increasing renewable energy, reducing emissions from the overall sector and removing carbon through nature based solutions.”

The Climate Transition Real Assets Fund is one of the first of its kind in the industry to offer investors direct investment in nature-based solutions alongside real estate and infrastructure. Carbon removals in the fund will be generated by afforestation (the planting of new trees), and not through the purchase of carbon offsets. Direct investment of this nature helps to remove emissions from the atmosphere and benefits nature, whilst generating a return for investors. The Fund will also seek to deliver social impact in infrastructure and real estate investments, through providing job opportunities and training, and procuring goods and services locally.

The fund is the fourth in Aviva Investors’ Climate Transition range, with the business having launched funds focused on Global and European Equities in 2020 and its Climate Transition Global Credit Fund in May this year. In January 2021, Aviva Investors announced its plans to reach net zero emissions across the whole of its £48.7 billion Real Assets platform by 2040, as it seeks to improve the sustainability of new and existing building stock across the UK and support clients in addressing the climate transition within illiquid assets.

In March, Aviva plc announced its plan to become a net zero carbon emissions company by 2040, the most demanding target of any major insurance company in the world, as part of its plan to become the UK’s leading insurer, and contributing to a sustainable economic recovery.

The fund is structured as a UK Non-UCITS Retail Scheme (NURS) and will be a Fund of Alternative Funds (FAIF), investing into underlying asset-class specific Luxembourg RAIF vehicles, liquid assets and forestry. This structure enables life companies and other investors to provide capital to long-term asset classes which can otherwise be extremely challenging to access.

Mark Meiklejon, Head of Real Asset Investment Specialists, at Aviva Investors, said:

“While this fund will be available for multiple client channels, with DC pension funds constituting an increasing proportion of retirement savings, we believe this launch represents a compelling and very differentiated product from others available in the market today. It offers opportunities for attractive long-term absolute performance while also tackling climate change, one of the largest systemic risks facing our world today. As we deploy the initial capital, we anticipate strong future third-party interest from investors seeking to align their portfolios with the transition to a low-carbon economy, without sacrificing returns.”

Pierre Biscay, Head of Customer Investments at Aviva , said:

“As a significant early investor in the fund, we are delighted to be participating in this exciting product launch.  We see this as another step towards our commitment to become a Net Zero company by 2040 and look forward to seeing the strong impact we expect this fund will have both towards a sustainable world and in enhancing customer returns.”

For more information contact:

A picture of James Morgan

James Morgan

Media Relations Manager

A picture of Steve Ainger

Steve Ainger

Head of Media Relations

Important information


The value of an investment and any income from it can go down as well as up. Investors may not get back the original amount invested.

Investments can be made in other funds; this could mean the overall charges are higher.

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.

For full details on this please refer to the Prospectus and Key Investor Information Document

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 at 07 July 2021. 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 assets under management of £366 billion in assets as at 31 December 2020.


For information on how Aviva is helping our people, customers and communities impacted by COVID-19 visit: www.aviva.com/covid-19-our-response/

Aviva is a leading international savings, retirement and insurance business. We exist to be with people when it really matters, throughout their lives – to help them make the most of life. We have been taking care of people for more than 320 years, in line with our purpose of being ‘with you today, for a better tomorrow’.

Our vision is to earn our customers’ trust as the best place to save for the future, navigate retirement and insure what matters most to them. In 2019, we paid £33.2 billion in claims and benefits on behalf of our 33.4 million customers.

We will focus on the UK, Ireland and Canada where we have leading market positions and significant potential. We will invest for growth in these markets. Our International businesses in Europe and Asia will be managed for long-term shareholder value. We will also transform our performance and improve our efficiency. Our transformation will be underpinned by managing our balance sheet prudently, reducing debt and increasing our financial resilience.

Total group assets under management at Aviva group are £522 billion and our Solvency II capital surplus is £12.0 billion (HY20). 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 image library, research reports and our news release archive. Sign up to get the latest news from Aviva by email.

You can follow us on Twitter

You can follow us on LinkedIn: www.linkedin.com/company/aviva-plc

For the latest corporate films from around our business, subscribe to our YouTube channel

We have a Globelynx system for broadcast interviews. Please contact the Press Officer noted above if you would like to make a booking.