Financial investments involve an element of risk. For further information, please see the risk warning section.
Managing €24 billion* in Alternative Income, Aviva Investors can deliver a broad range of tailored alternative income solutions to meet each client’s specific objectives and requirements.
They offer a pick-up in yield over traditional credit without significantly increasing risk. This makes them particularly attractive for long-term investors such as pension schemes and insurance companies. The higher yield is to compensate for the illiquid and often complex nature of these investments.
* Source: Aviva Investors as at 30 September 2015
Our Alternative Income Solutions platform offers a multi-strategy approach that harnesses our expertise across a wide range of asset classes.
These assets can complement any traditional fixed income mandate or integrate into a wider liability-aware strategy.
With alternative income solutions, investors benefit from:
- Strength and scale of Aviva plc by co-investing with one of the UK’s largest insurance companies enabling access to opportunities that might otherwise not be unavailable.
- Access to our in-house expertise in an exceptionally wide range of alternative asset classes.
- Extensive history of investing for pension and insurance markets means uniquely qualified to understand both the assets involved and the liabilities.
- Understand importance of providing ongoing world-class service in the form of reporting, operational and legal support.
Why an alternative income strategy?
Some of the reasons to consider an alternative income strategy:
- A range of alternative income streams.
- Provides sustainable cash flows against pension liabilities.
- A risk profile comparable to traditional corporate bond investments.
- Diversifies counterparty risk away from traditional senior unsecured corporate bonds.
- Typically employs covenants and collateral to contain losses in the event of default.
- An enhanced yield compensates for the complexity and illiquidity of the assets.
- Co-invest alongside Aviva Investors.
Aviva Investors also has an alternative income solutions platform allowing for a multi-strategy approach. It is one of our core business strengths and is populated with many assets due to well-established origination and deal pipelines.
Alternative assets available on the platform
- Long-lease real estate
- Real estate debt financing
- Infrastructure assets
- Social housing
- Ground rents
- Whole loans
- Government-guaranteed loans
- SME loans
- Trade finance
- Negative basis packages
- Corporate private placements
- Collateralised loan obligations (CLOs)
- Private equity financing
- Forward bonds