Aviva has launched a new default option offering a significant allocation to private markets, designed to help the provider meet its Mansion House commitments.
This default — called My Future Vision — will run alongside its existing two defaults, My Future and My Future Focus. It will allocate between 20 and 25 per cent of its assets into global private markets, with the exact allocation dependent on where a saver is on their retirement glidepath.
This investment strategy will include allocations into private equity, infrastructure, real estate and private debt.
This new default option will be available to Aviva’s trust-based schemes from 1 October 2025, with Aviva plans to roll it out more widely over the coming year.
Aviva will work with Aviva Investors and a number of other specialist fund manager to run these assets. This includes Neuberger, StepStone Group, KKR, Invesco and Apollo Global Management.
It says rather than adopting a single ‘one-stop-shop’ multi-asset fund, this strategy allows for a more tailored approach, allowing for more flexible, “stage-appropriate” allocations.
Aviva says that offering increased exposure to private markets offers savers greater diversification with the potential to enhanced returns over the longer term, while building resilience to periods of heightened market volatility.
Aviva is adopting a multi-default approach when it comes to meeting its Mansion House commitments, where providers pledged to invest up to 10 per cent of DC default funds into private market, of which half will be in the UK. A number of other insurance-based pension providers are adopting a similar multi-default approach. Other master trusts are looking to incorporate private assets into a single default option.
Typically default funds with an allocation to private markets will have a higher fee. A multi-default strategy allows employers to chose the default option they want.
Aviva director of investments Maiyuresh Rajah says: “The addition of My Future Vision to our core default range reflects our continued commitment to delivering better long-term retirement outcomes for savers across the UK.
“This new and innovative solution will invest in a wide range of private market investment strategies and will consider the evolving challenges savers encounter at different stages of their journey to retirement.”
Aviva Investors CEO Mark Versey adds: “My Future Vision showcases Aviva Investors’ multi-asset investment expertise combined with Aviva’s exceptional defined contribution capabilities.
“Running the overall strategy in-house and using our own private markets business, complemented by allocations to third-party partners, this launch fits with our ambition to be the go-to provider of funds that can help defined contribution investors better-access a broader range of asset classes and risk-return profiles.
“We believe it will support increased investment in the UK, alongside better access to opportunities in global private markets, all whilst delivering long-term investment outcomes for millions of savers.”