Aviva Buyers has added a brand new default outlined contribution pension funding technique to its current core default vary that may have an allocation to personal markets.
The brand new technique, My Future Imaginative and prescient, will allocate between 20 per cent to 25 per cent of property to world personal markets, together with in personal fairness, infrastructure, actual property and personal debt.
My Future Imaginative and prescient could have entry to the asset class by way of Aviva’s personal personal markets enterprise, in addition to through a choice of world asset managers, together with KKR, Apollo International Administration, Neuberger, Invesco and StepStone Group.
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Aviva stated that, slightly than adopting a “single ‘one-stop-shop’ multi-asset fund” method, the brand new technique will allocate discretely to a spread of specialist personal markets managers, permitting for “versatile, stage-appropriate allocations”.
This implies, in flip, that the underlying personal markets allocation will be tailor-made, relying on the completely different dangers members face.
My Future Imaginative and prescient, which builds on its current core default vary My Future and My Future Focus, shall be accessible to Aviva’s trust-based schemes from 1 October 2025, and shall be rolled out extra extensively in time.
“This new and modern answer will put money into a variety of personal market funding methods and can contemplate the evolving challenges savers encounter at completely different phases of their journey to retirement,” stated Maiyuresh Rajah, director of investments at Aviva.
“My Future Imaginative and prescient is a significant step ahead for outlined contribution pension schemes in the case of the scope and class of personal market investing.”
Aviva Buyers has pledged, beneath the Mansion Home Compact, to allocate 5 per cent of default funding methods to unlisted equities by 2030.
My Future Imaginative and prescient additionally helps the Mansion Home Accord, beneath which Aviva is required to speculate a minimum of 10 per cent of outlined contribution default funds in personal markets by 2030, with 5 per cent of the full allotted to the UK.
“Working the general technique in-house and utilizing our personal personal markets enterprise, complemented by allocations to third-party companions, this launch matches with our ambition to be the go-to supplier of funds that may assist outlined contribution buyers higher entry a broader vary of asset courses and risk-return profiles,” added Mark Versey, chief govt of Aviva Buyers.
“We imagine it should assist elevated funding within the UK, alongside higher entry to alternatives in world personal markets, all while delivering long-term funding outcomes for tens of millions of savers.”
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