Aviva Investors has announced the launch of the Aviva Investors Climate Transition Real Assets Fund, giving investors access to climate-focused solutions across the breadth of the European Real Assets universe - principally direct real estate, infrastructure and forestry assets.

The Climate Transition Real Assets Fund will be managed by a team from across Aviva Investors’ Real Assets platform, utilising underlying investment desks and a robust top down asset allocation process to identify best relative value.

The fund has been initially seeded with approximately £425m of investor equity which, combined with the ability to leverage up to 50 per cent of loan to value, will generate approximately £1bn of investment capital to deploy. Opportunities targeted by the fund will be those helping to accelerate, and benefit from, the transition to a low-carbon economy, such as, solar, on-shore wind and the active decarbonisation of inefficient real estate assets.

The Climate Transition Real Assets Fund is one of the first of its kind in the industry to offer investors direct investment in nature-based solutions alongside real estate and infrastructure. Carbon removals in the fund will be generated by afforestation (the planting of new trees), and not through the purchase of carbon offsets. Direct investment of this nature helps to remove emissions from the atmosphere and benefits nature, whilst generating a return for investors. The Fund will also seek to deliver social impact in infrastructure and real estate investments, through providing job opportunities and training, and procuring goods and services locally.

The fund is the fourth in Aviva Investors’ Climate Transition range, with the business having launched funds focused on Global and European Equities in 2020 and its Climate Transition Global Credit Fund in May this year.

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