What is My Future Vision?
The My Future Vision solution is an extension of our existing core default investment strategies. It uses our multi-fund and glidepath model, helping customers to prepare their savings for retirement.
My Future Vision looks beyond traditional listed markets (equities and bonds) and towards private markets assets, such as private equity, infrastructure, real estate and private debt. Our ambition with My Future Vision is to improve member outcomes through enhanced diversification.
My Future Vision is available to My Money trust-based schemes only.
The value of the funds may go down as well as up, and members may get back less than has been paid in.
Managing volatility throughout the journey to retirement
My Future Vision benefits from the same risk-managed investment approach used in our other existing default investment strategies. The solution embraces Aviva’s three-fund model, with a 15-year glidepath, which aims to appropriately manage the risk that members are exposed to throughout their retirement journey.
We show how this works in the illustration below:
Until 15 years before retirement
Members' pension savings are invested in the
My Future Vision Long Term Growth Fund.
15 to 10 years from retirement
Members' savings are gradually moved into the
My Future Vision Growth Fund.
From 10 years before retirement
Members' savings are gradually moved into the
My Future Vision Consolidation Fund. Their savings will be fully invested in this fund when they reach retirement.
Asset Allocation
The three funds in the strategy – Long Term Growth, Growth and Consolidation – are used at different stages of the retirement journey. To reflect this, they each have different investment mixes.
The Long Term Growth Fund and Growth Fund have a larger allocation to riskier asset classes, such as listed equity and private equity, to drive capital growth. The Consolidation Fund is more defensively positioned, with greater allocations to asset classes such as public fixed income and private debt. See the fund factsheets for the funds’ asset allocation.
A common factor across the three funds is their meaningful investment in private markets asset classes. This reflects our ambition to allocate flexibly across listed and unlisted asset classes to deliver strong outcomes for all members, irrespective of where they are in their savings journey.
The role of private markets asset classes in a diversified portfolio
A key consideration in the design of the three portfolios was the overall purpose of each of the asset classes, and sub-asset classes. Our views on the benefits of each asset class helped inform the most appropriate allocation to the different asset classes.
For example, we believe that private equity, with its typical portfolio diversification and potential to enhance returns, has a key role to play in the growth phase of a member’s savings journey. Meanwhile, asset classes such as private debt, core infrastructure and real estate hold a more meaningful place in the lead-up to retirement, given their potential for steady income and inflation-linkage characteristics.
A value driven, multi-manager investment solution
My Future Vision is a multi-manager investment strategy underpinned by best-in-class asset management. We’ve achieved this by leveraging the expertise of our in-house asset manager, Aviva Investors, in both public and private markets. We've also partnered with several specialist asset managers, known for their proven and market-leading investment capabilities in global private markets. The asset managers are:
The importance of governance in My Future Vision
Governance plays an important role in the solution. Aviva’s in-house governance team closely monitors the strategy on an ongoing basis, ensuring that the underlying allocations to the different asset classes remain suitable. The role of the team is to also confirm that the strategy continues to perform in line with expectations. The underlying managers and their funds are also subject to rigorous ongoing monitoring to ensure that they are delivering strong outcomes and continue to represent good value for members.
Sustainability
We believe that as a steward of people’s savings, we have a responsibility to act on the issues facing the world today. Doing so helps us to deliver positive outcomes – not only for pension scheme members, but also for the world and society that they’ll be retiring into. That’s why sustainability is integrated into the My Future Vision solution.
Each of the fund managers we’ve partnered with directly incorporates ESG factors into their investment process and engages with businesses and industries to drive positive change in areas such as climate change.
Useful information
Although we use ESG criteria when choosing investments, it’s important to note that ESG is different to sustainability labels.
Sustainability labelling has been introduced to facilitate sustainability comparisons between different investment funds. Sustainability labels are independently assessed and an addition to Aviva ESG criteria.