Aviva Investors has continued its solutions-oriented fund launches, with an alternative income solutions fund which offers access to illiquid, alternative credit strategies with a risk-profile in line with BBB investment grade credit.
The fund will make regular income payments, with a target gross income return of 3 months LIBOR plus 200 basis points. It aims to provide institutional investors with exposure to a range of alternative credit assets, such as real estate finance, infrastructure debt, private corporate debt and structured finance.
Aviva Investors chief investment officer, global investment solutions, Mark Versey, commented: “Institutional investors can now gain access to our wide-ranging alternative income expertise through the newly launched Aviva Investors Alternative Income Solutions Fund, or through the existing offering of bespoke alternative income solutions designed to meet specific client needs.” Barry Fowler, managing director – alternative income solutions at Aviva Investors, added: “In a low interest rate environment, institutional investors want high-quality cash flows to meet future liabilities with better returns than are available in publicly-traded markets, including government bonds. Alternative income assets have such characteristics, and typically demonstrate lower defaults and higher recovery rates relative to liquid comparables.”