Aviva Investors, the global asset management business of Aviva plc (‘Aviva’), today announces the launch of the Aviva Investors Alternative Income Solutions Fund.
The open-ended fund offers access to illiquid alternative credit strategies while maintaining an overall risk profile in line with BBB-rated investment grade credit. It will make regular income payments and reinvest capital subject to liquidity requirements. The fund is denominated in GBP and will invest in GBP, USD and EUR assets; hedging any overseas currency risk.
The fund provides institutional investors with access to a multi-asset alternative credit portfolio that invests in real estate finance, infrastructure debt, private corporate debt and structured finance.
The Fund targets a gross income return of 3 months GBP LIBOR plus 200 basis points, seeking the best relative value across the private asset spectrum whilst offering diversification from more traditional liquid credit strategies. It is managed by Barry Fowler, Managing Director, Alternative Income Solutions, alongside fund managers James Tarry, Ted Jennings, and Craig Mackenzie.
Mark Versey, Chief Investment Officer - Global Investment Solutions at Aviva Investors, said:
“Through our pension and insurance heritage we have over 30 years’ experience of managing alternative income assets, with the platform growing to more than £22 billion* after seeing strong inflows in recent years. Institutional investors can now gain access to our wide ranging alternative income expertise through the newly launched Aviva Investors Alternative Income Solutions Fund or through the existing offering of bespoke alternative income solutions designed to meet specific client needs.”
Barry Fowler, Managing Director - Alternative Income Solutions at Aviva Investors, added:
“In a low interest rate environment, institutional investors want high-quality cash flows to meet future liabilities with better returns than are available in publicly-traded markets, including government bonds. Alternative income assets have such characteristics, and typically demonstrate lower defaults and higher recovery rates relative to liquid comparables. The fund takes a multi-asset approach to provide access to a greater array of illiquid opportunities and to increase diversification benefits.”
Euan Munro, Chief Executive at Aviva Investors, added:
“Three years ago I joined Aviva Investors with a new focus for the business on outcome-oriented solutions. To that end, we have already seen significant inflows into the Aviva Investors Multi-Strategy range. The launch of the Alternative Income Solutions Fund marks another important step in building our business around specific client needs.”