The Aviva Master Trust’s recently published “Statement of Investment Principles” (September 2025) outlines future investment intentions, particularly regarding illiquid assets within its default arrangements.
Strategic Expansion of Illiquid Assets in Standard Default
The Trustee plans to expand the range of illiquid assets within the My Future Focus Universal Lifestyle, the Scheme’s standard default investment option. This expansion will initially include Multi-Asset Private Debt, commencing in Q1 2025. The Trustee further plans to diversify this allocation to ultimately include Infrastructure Equity and Venture Capital. Currently, the standard default has a strategic allocation of 10% to illiquid assets in the growth phase, reducing to 4% in the pre-retirement phase, primarily in UK Real Estate and Private Debt. This exposure is greatest for members aged 55 or younger, assuming a selected retirement age of 65 (page 30).
Illiquid Asset Allocation in My Future Focus Target Lifestyles
For the My Future Focus Target Drawdown, Target Cash Lump Sum, and Target Annuity Lifestyles, there is a strategic allocation of 10% to illiquid assets, reducing to 7% in the pre-retirement phase for the Target Drawdown Lifestyle and 0% for the Target Cash and Target Annuity Lifestyles. These currently include UK Real Estate and Private Debt. Exposure to illiquid assets is greatest for members aged 55 or younger, assuming a selected retirement age of 65 (page 31).
Illiquid Asset Allocation in Additional Default Funds
Within the additional default funds, the Aviva Pension My Future Focus Long Term Growth fund has approximately 10% allocated to illiquid assets (UK Real Estate and Private Debt). Members invested in this fund are at least 15 years from their selected retirement age, or 50 or younger assuming a selected retirement age of 65. The Trustee is expanding the range of illiquid assets in this fund from exclusively UK Real Estate, initially into Multi-Asset Private Debt, commencing in Q1 2025. The Trustee plans to further diversify this allocation to ultimately include Infrastructure Equity and Venture Capital (page 33).
The Aviva Pension My Future Focus Growth fund has approximately 10% allocated to illiquid assets (UK Real Estate and Private Debt). Members invested in this fund are at least 10 years from their selected retirement age, or 55 or younger assuming a selected retirement age of 65 (page 33).
The Aviva Pension My Future Focus Consolidation fund has approximately 4% allocated to illiquid assets (UK Real Estate and Private Debt). Members invested in this fund are a minimum of 10 years from their selected retirement age, or 55 or older assuming a selected retirement age of 65 (page 34).
The Aviva Pension My Future Focus Drawdown fund has approximately 5% allocated to illiquid assets (UK Real Estate and Private Debt). Members invested in this fund are a minimum of 10 years from their selected retirement age, or 55 or older assuming a selected retirement age of 65 (page 34).
For the Aviva Pension MyM Shariah Growth and Aviva Pension MyM Shariah Consolidation funds, there is approximately 0.9% allocated to illiquid assets (Property only). Members invested in these funds are at least 10 years from their selected retirement age, or 55 or younger assuming a selected retirement age of 65. The Trustee’s policy is to allow for a small allocation to illiquid assets within these defaults and will keep this position under review (page 34).
No Current Plans for Illiquid Assets in My Future Universal and Stewardship Lifestyles
There are no current plans to include illiquid assets within the My Future Universal & Target Drawdown/Cash Lump Sum/Annuity Lifestyles, or the Stewardship Lifestyle. The rationale for the My Future strategies is their overall objective and low charge. For the Stewardship Lifestyle, its primary focus is to meet certain exclusionary needs as an alternative default (page 31).
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