Depending on their objectives, institutional investors may require a wide range of investment solutions catering for differing risk tolerance levels, targeted returns, liabilities and time horizons.
Aviva Investors Global Investment Solutions has created a number of strategies designed to manage these complex issues. All of our strategies incorporate advanced risk management and well-honed investment processes designed to deliver consistent risk-adjusted returns.
Some of our key capabilities are:
- Alternative income solutions
- Buy-and-maintain credit
- Liability driven investing
Liability Driven Investing
The Aviva Investors LDI team has led the development of liability driven investments (LDI) in the UK for many years. They have a long history of managing large complex schemes and insurance assets in an ever evolving market environment.
Working with key stakeholders of our pension scheme and insurance company clients means the LDI team has a long history of innovation when managing portfolios with diverse risk objectives across a broader set of market risks than the typical interest rates and inflation mandates.
We have experience in building, executing and managing substantial risk-matching portfolios with over $145 billion of liabilities (currency hedged) by combining physical assets with a wide range of derivatives overlays.
Our buy-and-maintain strategy is based on investing in diversified defensive corporate credits, a longer and bespoke duration management and a benchmark agnostic low-turnover approach.
Investments are made when they meet the client’s long-term return expectations. Credits are only ever sold to protect the credit quality of the portfolio from sharply deteriorating credit trends or to maintain portfolio characteristics, such as duration.
The team currently manages in excess of $27 billion* of alternative income assets.
*Source: Aviva Investors as at 30 September 2015
Alternative income solutions
For investors who can afford to sacrifice some liquidity in return for superior returns, alternative income assets such as infrastructure or real estate financing, can increase yield over traditional corporate bonds.
Also, these assets offer a similar risk profile to traditional corporate bonds, making them particularly attractive for long-term investors.
Aviva Investors manage both stand-alone and fully-integrated alternative income asset strategies for a wide range of clients. Aviva Investors Global Investment Solutions also has a number of alternative income products focused around financing, private lending, infrastructure debt and real estate.
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.