Aviva Investors launches Long Term Asset Fund

(London) – Aviva Investors, the global asset management business of Aviva plc, announces the launch of the Aviva Investors Real Estate Active LTAF (‘REALTAF’/’the Fund’), its first fund under the Long Term Asset Fund (LTAF) regime, a new category of fund designed to provide access to long-term private market assets, and the largest such fund launched in the market to-date.

aviva investors long term asset fund
  • New strategy is UK’s largest Long Term Asset Fund launched to-date
  • Seeded with readymade £1.5 billion portfolio, funded by Aviva UK Life

The Fund, which consists of an initial £1.5bn portfolio of carefully selected direct real estate assets seeded by Aviva UK Life, will enable a broad range of institutional and professional investors – including defined contribution pension funds, master trusts and local government pension funds – to access real assets investments more easily, whilst better matching the liquidity of the underlying assets with that of the Fund.

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

“As one of the largest investors in UK real estate we are thrilled to bring REALTAF to the market. It represents the largest LTAF on offer today for wealth and institutional investors, and one we want to make the go-to fund of choice for investment in real assets. We are also pleased to have the backing of Aviva UK Life in creating a fund which we believe represents the future of real assets investing. Not only does this demonstrate our ability to innovate and provide new products to meet the evolving demands of the market, it also shows the confidence we have to consistently originate assets, at scale, whilst matching investors’ underlying liquidity requirements.”

Featuring a long-term absolute return target, REALTAF will adopt a strategy complementing Aviva Investors’ ‘active equity’ approach to real estate equity, which is characterised by a preference to invest in high-conviction locations and emerging themes it strongly believes are well-placed to deliver long-term value. It will be managed by Tim Russell, Senior Fund Manager at Aviva Investors.

REALTAF has also been created under the belief that real estate assets incorporating sustainability considerations will materially outperform those that do not adequately price-in material risks from sustainability-related obsolescence. As part of the ongoing management of REALTAF, Aviva Investors will regularly review ongoing carbon emissions generated by buildings across the Fund to help inform asset allocation decisions and drive investment performance.

Alongside this, Net Zero audits will be conducted to understand each building’s current Net Zero alignment, its transition potential, and the solutions available, thereby forming a decarbonisation strategy for each individual asset. Aviva Investors will also undertake social value audits to assess the social needs of areas immediately surrounding each building in the portfolio, along with the contribution these assets make to surrounding communities. This supports Aviva’s aim to help the UK become the most climate-ready advanced economy.

Daniel McHugh, added:

“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. 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:

“We are delighted that our With-Profits funds are able to support the launch of REALTAF, giving them the opportunity to pool and diversify their existing property holdings whilst also benefitting from the potential growth opportunities available in the sector. 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.

“As one of the largest investors in the UK, Aviva has the power to create a huge amount of positive change. We already invest a substantial amount into the UK and its communities by financing offshore windfarms and social housing schemes, improving the energy intensity of the built environment, funding restoration, carbon capture and woodland creation schemes. All of this supports our aim to help the UK become climate ready. We believe this new fund can help us do even more, making the most of the investment expertise of the Real Assets business and its ability to find projects that can deliver long-term value for our With-Profits customers, us as a business, and for the UK.”

For more information contact:

Steve Ainger

Head of Media Relations

Laura Cocker

Media Relations Manager

James Morgan

Media Relations Manager

Important information

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 13 March 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 £223 billion in assets under management as at 31 December 2022.


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/

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·        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.

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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.