Aviva has recently launched its new My Future Vision solution; a new addition to its core range of existing default investment strategies. The new strategy will invest globally in a range of public and private markets asset classes, with a view to enhancing long-term outcomes for members.
Delivering for members at every stage of their journey to retirement
As with Aviva’s existing defaults, the strategy embodies a risk-managed approach to investing. The strategy comprises three funds (Long Term Growth, Growth and Consolidation) and aims to help members navigate market volatility throughout their savings journey. The chart to the right shows how members’ allocations change as they approach retirement.
Each of these funds will invest in a highly diversified range of asset classes including a significant allocation to a range of global private market investments in private equity, real estate, infrastructure and private debt.
In addition to the breadth of global access to private markets, what really sets the strategy apart is how it has been flexibly implemented with the aim of delivering a positive outcome for all members, irrespective of where they are in their savings journey.
The strategy will allocate directly to a range of individual funds within each asset class, rather than wrapping these funds into a single ‘one-stop-shop’ multi-asset fund. In doing so, Aviva can tailor allocations to private markets asset classes depending on the evolving risks members face at varying stages of the glidepath. Importantly, this means that Aviva have been able to build a solution that does not focus solely on younger members, at the expense of those nearing retirement.
An outcomes-driven, partnership approach
My Future Vision is a multi-manager investment strategy underpinned by best-in-class asset management. This has been achieved by leveraging the expertise of in-house asset manager, Aviva Investors in both public and private markets, and partnering with five additional specialist asset managers, known for their market-leading investment capabilities in global private markets – Neuberger, StepStone Group, KKR, Invesco, and Apollo Global Management.
Aviva recognises that private market investments require specialist investment knowledge and expertise, which can result in a wider range of performance outcomes across managers. This is especially true for asset classes that involve active value creation, such as private equity. That’s why selecting the right managers and the right strategies – guided by thorough research and due diligence – is fundamental to achieving strong, reliable outcomes.
Within private equity as one example, the strategy partners with two managers to employ complementary strategies to enhance diversification and optimise return potential. This includes co-investments, which enables access to high-conviction opportunities alongside leading partners at reduced fee levels, and secondaries, which provide greater visibility on underlying assets and can offer accelerated deployment and early cashflows.
The strategy adopts similar complementary multi-manager approaches within real estate, infrastructure and private debt, serving to enhance the diversification benefits afforded to members in this solution.
A new era for DC defaults
My Future Vision marks a new chapter in default strategy design – bringing private markets innovation to the heart of DC investing. It’s a solution built for scale, resilience and long-term value, and one Aviva believe will
help reshape retirement outcomes for savers in the UK.
