Investors in real assets can propel the transition to a more sustainable future while also benefiting from portfolio diversification and attractive returns, says Mark Meiklejon.

The summer of 2022 could prove a turning point in the battle against climate change. Scorching heatwaves across Europe, China and the Horn of Africa have focused public attention on the reality of global warming. Meanwhile, Russia’s invasion of Ukraine has led to spiralling gas prices, prompting many countries to question their continued reliance on fossil fuels.

After years of foot-dragging among policymakers, the legislative agenda has a new momentum. The European Union’s wide-ranging REPowerEU plan aims to improve the bloc’s energy security by expediting the shift to renewables.1 In the US, the Biden administration has passed the Inflation Reduction Act, which includes an ambitious package of measures to reduce carbon emissions and promote green industries.2

The accelerating climate transition has important implications for investors in real assets. After all, the built environment is a major contributor to climate change: around 37 per cent of global carbon emissions are associated with the construction and maintenance of buildings.3 Inefficient, carbon-intensive real assets are likely to be affected by new green regulations and shifting demand patterns over the coming years. They may also be vulnerable to the physical risks of climate change, from extreme heat to floods and wildfires.

At the same time, real assets have an important role to play in tackling the climate crisis, while also delivering portfolio benefits for clients.

Our approach to investing in the climate transition through real assets seeks to achieve this by proactively decarbonising existing assets; acquiring and developing new, climate-friendly real estate; developing new infrastructure assets, including fibre broadband and electric vehicle (EV) charging networks; and by identifying opportunities to capture carbon via nature-based solutions.

Download ‘Building better: Investing in the climate transition through real assets’ to understand:

  • How the climate transition is creating opportunities for real assets investors
  • The portfolio benefits to be gained from investing in real assets aligned to the climate transition, including diversification, illiquidity premia and uncorrelated returns
  • How direct investors in real assets can influence the carbon impact of their portfolios by reducing, avoiding and removing emissions

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Except where stated as otherwise, the source of all information is Aviva Investors Global Services Limited (“Aviva Investors”). Unless stated otherwise any views, opinions and future returns expressed are those of Aviva Investors and based on Aviva Investors internal forecasts. 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. Past performance is not a guide to future returns.

The information within this document is based on our current understanding of taxation and is not to be construed as investment, legal or tax advice. The basis and rates of tax may change in the future. Some of the information within this document is based upon Aviva Investors estimates. These should not to be relied on by anyone else for the purpose of making investment decisions.

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Where relevant, information on our approach to the sustainability aspects of the fund and the Sustainable Finance disclosure regulation (SFDR) including policies and procedures can be found on the following link:

The Aviva Investors Climate Transition Real Assets Fund is a sub-fund of the Aviva Investors Funds ACS and is categorised as a Non-UCITS retail scheme operating as a fund of alternative investment funds.

Aviva Investors Funds ACS (AIF ACS) is an umbrella structure comprising different Sub-funds and taking the form of a coownership scheme. As a consequence of this, the Fund may be treated as tax transparent for the purpose of income and /or gains by relevant taxing jurisdictions. The Prospectus and the annual and half-yearly reports are prepared for the umbrella. The Fund is a non-UCITs retail scheme operating as a FAIF. This Fund is authorised in the United Kingdom and regulated by the Financial Conduct Authority. Aviva Investors UK Fund Services Limited is authorised in the United Kingdom and regulated by the Financial Conduct Authority.

Investors should note that the tax legislation that applies to the Fund may have an impact on the personal tax position of your investment in the Fund. The assets of the Fund are beneficially owned by the unitholders in the Fund as tenants in common and must not be used to discharge any liabilities, or meet any claims against, any person other than the unitholders in the Fund.

Further information about the Fund including other unit classes and dealing can be found in the Prospectus, available in English, and also in the latest annual and half-yearly Report and Accounts (English only) which are available free of charge from our website,

The SICAV-RAIF umbrella consists of the following funds: UK Real Estate Sub Fund, EUR Real Estate Sub Fund, UK Infrastructure Sub Fund, EUR Infrastructure Sub Fund. The SICAV-RAIF is a Luxembourg special limited partnership established under the RAIF Law and accordingly is not subject to supervision by any Luxembourg supervisory authority. Accordingly, units are reserved to Institutional Investors and Well-Informed Investors who are aware of the risks attaching to an investment in a fund investing in direct or indirect interests in real estate. The Prospectus or Offering Memorandum (as relevant) of Aviva Investors funds are available together with the Report and Accounts free of charge by contacting us at the address below.

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