ESG Fund Factsheet

For adviser use only

Aviva Multi-Asset Plus

Classification: Responsible
Management style: Active

Introduction

Aviva have a range of five risk targeted multi-asset funds that are mapped to several risk ratings agencies. The range will cover the risk appetite for most medium to higher risk clients.

Name Launch Date IA Sector Portfolio OCF* Fund Size (m)
Aviva  MA Plus 1 1/11/2010 Volatility Managed 0.55% £359
Aviva  MA Plus 2 1/11/2010 Volatility Managed 0.57% £983
Aviva  MA Plus 3 1/11/2010 Volatility Managed 0.57% £1116
Aviva  MA Plus 4 1/11/2010 Volatility Managed 0.60% £814
Aviva  MA Plus 5 1/11/2010 Volatility Managed 0.60% £243

About Aviva

Aviva are a global asset manager that combines their insurance heritage, investment capabilities and sustainability expertise to deliver wealth and retirement outcomes that matter most to investors.

They believe in the power of integration, creating opportunity and empowering investors to have greater confidence in their investment decisions and outcomes. They invest over £263bn (as at 30 September 2021) on behalf of their clients according to the five key pillars below.

  • They believe in informed risk, effectively managed
  • They’re actively responsible investors
  • They invest with conviction for the long term
  • They are inspired by their clients’ needs
  • They collaborate to innovate

Assets under management*

£3461m

Total Assets in Multi-Asset Plus Range

*As at 31/05/2022

ESG Process

Aviva have 25 ESG dedicated Specialists embedded within the investment team who specialise in issues such as; climate change, biodiversity, modern slavery and corporate governance.

Aviva also have a firm wide Responsible Investment Philosophy. This includes an overall investment belief and clear commitments, a governance framework. It outlines how they turn the policy into an investment approach across  integration, stewardship, avoidance and market reform.

Aviva also exercise their voting rights to ensure the companies are ‘being run for those that own them – not simply those that run them’.

Positive Screening

The ESG team provide quantitative and qualitative analysis on the securities. The quantitative research is Aviva’s proprietary ESG score that they call ‘ESG Elements’. This score is applied to over 30,000 companies.

All securities in a passive index are scored between 1-10 via ESG Elements. The portfolio is then optimised by allocating more to higher scoring companies and less to lower scorers.

Exclusion Policies

Aviva MA ranges are not exclusionary portfolios, however, they will screen out severe risks to climate, people and the planet:

  • Weapons/Arms
  • Thermal Coal, Arctic Oil & Oil Sands
  • Tobacco

Key Themes

Aviva Multi-Asset Ranges key themes include:

  • Climate change
  • Sustainable Solutions
  • Company Improvement
  • Green Infrastructure

Cost

The average OCF over the full range and share classes is 0.51%. This is a competitive figure for an Active range. Share class II is the most widely available between 0.57% – 0.60%  for each fund.

Investment Performance

The fund range performance is measured against a composite benchmark made up of the MSCI AC World Index and the BBGA Bond index in various proportions depending upon the risk profile of the fund.

Measuring cumulative performance, all funds in the range are consistently outperforming the benchmark over all time periods.  However over 1 month, Plus II to V are underperforming.  Performance was measured up to 31st May 2022.

Past performance is not a guide to future performance.

Platform availability

Aviva Multi-Asset Plus funds are available on the following platforms:

  • Abrdn Wrap
  • Abrdn Elevate
  • Advance – Embark
  • AEGON
  • AJ Bell
  • Ascentric
  • Aviva
  • Embark
  • Fidelity
  • Hubwise
  • James Hay
  • Novia
  • Nucleus
  • Transact

Risk tools

Aviva Multi-Asset Plus Range is mapped to the following risk tools

  • Dynamic Planner
  • Synaptic
  • Oxford Risk
  • EValue
  • Defaqto
  • Finametrica

Supporting documents

Tenet Opinion

Aviva’s Multi-Asset Core range is a passive version of the long running Multi-Asset Plus Range.

This range has ESG Integrated into the company and the stock selection process. Using their own scoring system to allocate more to higher rated sustainable stocks and less to lower scorers. Rather than excluding the lower scoring securities, Aviva believe it is important to engage with these companies to improve their ESG credentials.

The passive range is cheaper than many alternatives but should be used where clients don’t have negative screening requirements. The sustainable positive criteria is also lighter touch than some of the alternatives with Aviva aiming to influence the companies future improvements.

Information approved for Professional Adviser use only and should not be relied upon by private investors (this is not for Retail Clients).