Aviva Investors has announced the launch of an umbrella fund to provide investors with diversified exposure to its return-enhancing and liability-matching (REaLM) strategies.
Aviva Investors has announced the launch of an umbrella fund to provide investors with diversified exposure to its return-enhancing and liability-matching (REaLM) strategies.
The REaLM Multi-Sector Fund is the latest addition to Aviva Investors' REaLM portfolio consisting of five specialist unregulated funds that invest in social housing, ground rents, infrastructure, student and commercial assets. In its first year, the portfolio saw strong inflows from UK pension schemes due to its potential to provide secure, long-term and inflation-linked income streams.
The fund has received initial investment from a UK corporate pension scheme. Julian Taylor, head of REaLM at Aviva Investors: 'Since launching the strategy last year, UK pension schemes have invested £725 mln with us, which underlines the demand for liability-matching products that can help address the under-funding issues experienced by many.'
He added: 'Through a single vehicle, investors now have the opportunity to diversify their holdings across our different REaLM funds, an attractive proposition particularly to smaller pension schemes, which may not have the capacity to separately invest in the different sectors.'
The multi-sector fund will invest in three or more of the REaLM sub funds, with no more than 40% allocated to a single fund to ensure diversification. It is managed by Julian Taylor, who also has specific responsibility for the commercial assets and student funds.
