Aviva Investors launches Aviva Investors Climate Transition Real Assets Fund

Aviva Investors has launched the Aviva Investors Climate Transition Real Assets Fund. The fund will aim to provide various investor groups, including defined contribution (DC) schemes, with access to climate-focused solutions of the European Real Assets universe, with a focus on direct real estate, infrastructure, and forestry assets.

The Fund will be managed by a team from across Aviva Investors’ Real Assets platform and is expected to deliver a net annual return of approximately 8% per annum over five-year periods, whilst targeting net-zero by 2040 or sooner.

The fund has been initially seeded with approximately GBP425 million (US$580.94 million) of investor equity which, combined with the ability to leverage up to 50% of the loan to value, will generate approximately GBP1 billion (US$1.36 billion) of investment capital to deploy. Opportunities targeted by the fund will be those helping to accelerate, and benefit from, the transition to a low-carbon economy, such as solar, on-shore wind, and the active decarbonization of inefficient real estate assets.

The fund is structured as a UK Non-UCITS Retail Scheme (NURS) and will be a Fund of Alternative Funds (FAIF), investing into underlying asset-class specific Luxembourg RAIF vehicles, liquid assets, and forestry.