Aviva Investors has launched a further long-term asset fund (LTAF) in the UK institutional and wealth market, by converting its Climate Transition Real Assets Fund (CTRAF) to sit under the new regime which has been designed to invest more efficiently in long-term assets.

It is the second LTAF offered by Aviva Investors and follows the launch of its Real Estate Active LTAF in May 2023, which at the time was the largest such fund brought to market. REALTAF applies an “active equity” real estate investment strategy, characterised by a preference to invest in high-conviction locations and emerging themes.

CTRAF, launched in 2021, made its first acquisition for the fund in September 2021 when it bought an office building in Hoxton, London. The fund targets direct investments in real estate, infrastructure and nature-based solutions that can accelerate and benefit from the transition to a low-carbon economy.

Last month, Aviva Investors launched the sixth edition of its annual ‘Real Assets Study’, which showed 69% of corporate defined contribution (DC) pension funds expect to increase allocations to real assets over the next two years, with 17% of all respondents citing sustainability-related factors as being a critical and deciding factor in real assets investment decisions.

Daniel McHugh, chief investment officer at Aviva Investors, said: “We are very pleased to offer a further LTAF product to the UK institutional and wealth market, building on the successful launch of our Real Estate Active LTAF in 2023. As one of the UK’s largest investors in real estate and infrastructure, we remain committed to our belief that sustainability can drive long-term performance for real assets portfolios.

“Our research shows investors are looking for access to investments that deliver long-term performance whilst being aligned with net-zero commitments. By converting our Climate Transition Fund to an LTAF structure, we believe we have a product that is market-leading in both those areas, providing opportunities to invest in exciting growth sectors which support the UK economy and its transition towards net zero, whilst maximising the investment outcomes of people saving for retirement.”

Jill Barber, global head of distribution at Aviva Investors, added: “We have a very clear ambition to offer our clients better access to illiquid assets and believe this innovative fund structure will further that goal. We aspire to be the go-to LTAF provider for the UK’s DC and wealth markets by providing a comprehensive suite of funds that reflect feedback and demand from clients for greater access to the full breadth of real assets investment strategies.”

To read the latest IPE Real Assets magazine click here.

 

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