Select your client type BE, English About Responsibility Capabilities Views Contact Search English About us Company news Aviva Investors expands Climate Transition range with launch of Climate Transition Global Credit Fund 6 May 2021 2 minute read (London) - Aviva Investors, the global asset management business of Aviva Plc, today announces the launch of the Aviva Investors Climate Transition Global Credit Fund with a $350 million strategic capital allocation from the Aviva Investors UK multi-asset range and the Aviva Ireland multi-asset portfolio. The Fund aims to identify and invest in companies offering goods and services for climate change mitigation and those best-placed to transition to a warmer, lower-carbon world. Aligned with the United Nation’s Sustainable Development Goals (SDGs), and the firm’s wider ESG approach, the fund is designed to enable credit investors to participate in positive climate outcomes. It complements the Aviva Investors Climate Transition Global Equity Fund and the Aviva Investors Climate Transition European Equity Fund. The fund will be co-managed by portfolio managers Tom Chinery and Justine Vroman and climate specialist Rick Stathers. Tom and Justine have over 10 and nine years of experience in asset management respectively and Rick has studied and worked in climate change for over 25 years. They will benefit from the research and analysis of Aviva Investors’ 125-strong global credit team and over 25 ESG analysts. The fund’s investment approach excludes fossil fuel companies and targets solutions providers that generate current or future material revenue by addressing climate-related themes, such as the shift to renewable energy sources, sustainable transport and more environmentally-conscious lending. Significantly, the approach also aims to capture transition-oriented companies with low decarbonisation and physical impact risk, extending the investment universe beyond businesses with obvious green credentials. The fund will be benchmarked against the Bloomberg Barclays Global Aggregate Corporates Index, and invest predominantly in investment grade companies, with a small allocation of up to 5% in high yield bonds. Importantly, the fund will invest in cash bonds and have a long/short CDS basket to target opportunities arising from the market inefficiencies around climate change. Colin Purdie, Chief Investment Officer for Credit at Aviva Investors, said: “We can’t pivot to a lower carbon world if all we do is rule out the poor performers and only invest in companies that provide solutions to climate change. All companies need to adjust for a warmer, lower carbon world, which is why we felt it was important to use a wider transition lens to capture a larger set of businesses beyond those with obvious green credentials. “As investors, it is our responsibility to look beyond small pockets of green finance to engage and mobilise the liquidity of the wider credit market to assist in climate transition and the achievement of net zero carbon emissions. Companies that don’t adjust their business models will be less attractive to investors and will present a less compelling investment case over time. Climate laggards may find that their financing becomes more expensive than that available to climate leaders.” Aviva Investors is committed to embedding sustainable investing across its business. The Principles For Responsible Investment (PRI) assigned the firm an A rating for fixed income in latest UN PRI assessment; the firm recently introduced a 1.5 degree centigrade aligned engagement programme focused on 30 of the world’s worst carbon emitters; its collective activities include partnerships and lobbying through Climate Action 100, the Task Force on Climate Related Disclosures (TCFD), the Carbon Disclosure Project (CDP) and the Net Zero Asset Managers Alliance. Aviva PLC announced last month its plan to become a net zero carbon emissions company by 2040, the most demanding target of any major insurance company in the world, as part of its plan to become the UK’s leading insurer, contributing to a sustainable economic recovery. Aviva was the first international insurer to go operationally carbon neutral in 2006 and achieved its 2030 carbon reduction target (70% reduction on 2010 levels) 10 years ahead of schedule. For more information contact: Victoria Howley Media Relations Manager Phone +44 20 7809 8791 Email victoria.howley@avivainvestors.com Steve Ainger Head of Media Relations Phone +44 20 7809 8452 Email steve.ainger@avivainvestors.com Important information The information and opinions contained in this document are for use by the financial press and media only. No reliance may be placed for any purpose on the information or opinions contained in this document nor should they be seen as advice. The press release is provided on the basis that Aviva Investors Global Services Limited is not causing the communication of a financial promotion under exemption of the Financial Promotion Order, as Aviva Investors Global Services Limited has no control over the way in which an article based on this press release is prepared and published by the financial press and media. Except where stated as otherwise, the source of all information is Aviva Investors Global Services Limited (“Aviva Investors”) as at 5 May 2021. Unless stated otherwise any views, opinions expressed are those of Aviva Investors. They should not be viewed as indicating any guarantee of return from an investment managed by Aviva Investors nor as advice of any nature. The value of an investment and any income from it may go down as well as up and the investor may not get back the original amount invested. Issued by Aviva Investors Global Services Limited, registered in England No. 1151805. Registered Office: St Helen's, 1 Undershaft, London, EC3P 3DQ Authorised and regulated by the Financial Conduct Authority. Aviva Investors Aviva Investors is the global asset management business of Aviva plc. The business delivers investment management solutions, services and client-driven performance to clients worldwide. Aviva Investors operates in 14 countries in Asia Pacific, Europe, North America and the United Kingdom with assets under management of £366 billion in assets as at 31 December 2020. AVIVA PLC For information on how Aviva is helping our people, customers and communities impacted by COVID-19 visit: www.aviva.com/covid-19-our-response/ Aviva is a leading international savings, retirement and insurance business. We exist to be with people when it really matters, throughout their lives – to help them make the most of life. We have been taking care of people for more than 320 years, in line with our purpose of being ‘with you today, for a better tomorrow’. Our vision is to earn our customers’ trust as the best place to save for the future, navigate retirement and insure what matters most to them. In 2019, we paid £33.2 billion in claims and benefits on behalf of our 33.4 million customers. We will focus on the UK, Ireland and Canada where we have leading market positions and significant potential. We will invest for growth in these markets. Our International businesses in Europe and Asia will be managed for long-term shareholder value. We will also transform our performance and improve our efficiency. Our transformation will be underpinned by managing our balance sheet prudently, reducing debt and increasing our financial resilience. Total group assets under management at Aviva group are £522 billion and our Solvency II capital surplus is £12.0 billion (HY20). Our shares are listed on the London Stock Exchange and we are a member of the FTSE 100 index. For more details on what we do, our business and how we help our customers, visit www.aviva.com/about-us The Aviva newsroom at www.aviva.com/newsroom includes links to our image library, research reports and our news release archive. Sign up to get the latest news from Aviva by email. 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