Marvin OnumonuAviva has launched ‘My Future Vision’, a new default pension investment strategy for defined contribution (DC) schemes.
The strategy is in addition to Aviva’s existing default funds and follows on from My Future and My Future Focus.
It marks a shift towards private markets, with 20% to 25% of assets going into private equity, infrastructure, real estate and private debt, depending on how close members are to retirement.
To run the private markets side, Aviva has teamed up with global asset managers including Neuberger, StepStone Group, KKR, Invesco and Apollo Global Management.
This is in addition to using Aviva Investors’ own team.
The approach means allocations can be adjusted as members get closer to retirement.
The strategy aims to improve diversification and to deliver returns in a risk-managed way, with the aim of handling market volatility better.
Aviva is not using a single multi-asset fund for private markets but is instead allocating to separate specialist managers.
My Future Vision is also set up to meet Aviva’s Mansion House Compact pledge, which is to allocate 5% of default investment strategies to unlisted equities by 2030, and the Mansion House Accord, which sets a target of at least 10% in private markets by 2030, including 5% for the UK.
Maiyuresh Rajah, director of investments at Aviva, said: “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.
“My Future Vision is a major step forward for defined contribution pension schemes when it comes to the scope and sophistication of private market investing.”
Mark Versey, CEO at Aviva Investors, said: “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.”
Versey added: “We look forward to working with our new investment partners and potentially adding new ones in the future.”
