Aviva Investors, the global asset management business of Aviva, has launched its third fund under the Long Term Asset Fund (LTAF) regime with the creation of the Aviva Investors Multi-Sector Private Debt LTAF (MSPD LTAF).
The new fund has received an initial £750m of investment capital from Aviva’s flagship My Future Focus default pensions solution, which invests in a broad range of asset classes on behalf of the firm’s range of auto-enrolment Defined Contribution (DC) default strategies.
Also open for allocations from external investors, Aviva Investors expects MSPD LTAF to be particularly appealing to DC pension funds looking to diversify returns from traditional asset classes such as public equity and fixed income, as well as wider Private Markets allocations and single private debt strategies.
With 64 per cent of institutional investors in the 2024 edition of its ‘Real Assets Study’ citing diversification as a primary reason for allocating to real assets, the fund aims to produce a diversified portfolio of investments from across the private debt spectrum and a range of sectors, including opportunities in real estate debt, infrastructure debt, structured finance, and private corporate debt.
Including commitments to the MSPD LTAF, Aviva’s LTAF range now represents just over £3bn across a variety of private markets asset classes, with the Multi-Sector Private Debt LTAF following the launch of its Real Estate Active LTAF (REALTAF) in May 2023 and conversion of its Climate Transition Real Asset Fund (CTRAF) to sit under the new regime in March this year.
