Aviva Investors has converted its Climate Transition Real Asset Fund (CTRAF) to a Long-Term Asset Fund (LTAF) structure.

The CTRAF, originally launched by Aviva Investors in 2021, aims to provide investors with access to climate transition focused solutions across the breadth of European Real Assets, targeting opportunities in direct investments in real estate, infrastructure and nature-based solutions which can accelerate, and benefit from, the transition to a low-carbon economy.

This is the second LTAF offered by Aviva Investors, following the launch of its Real Estate Active LTAF (REALTAF) in May 2023, which applies an ‘active equity’ real estate investment strategy, characterised by a preference to invest in high-conviction locations and emerging themes.

The conversion was announced after research from Aviva found that 69 per cent of corporate defined contribution (DC) pension funds expect to increase allocations to real assets over the next two years, with 17 per cent of all respondents citing sustainability-related factors as being a critical and deciding factor in real assets investment decisions.

Commenting on the news, Aviva Investors chief investment officer, Daniel McHugh, stated: “We are very pleased to offer a further LTAF product to the UK institutional and wealth market, building on the successful launch of our Real Estate Active LTAF in 2023.

"Our research shows investors are looking for access to investments that deliver long-term performance whilst being aligned with net zero commitments.

“By converting our Climate Transition Fund to an LTAF structure, we believe we have a product that is market-leading in both those areas, providing opportunities to invest in exciting growth sectors which support the UK economy and its transition towards net zero, whilst maximising the investment outcomes of people saving for retirement.”

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