Insight & Analysis

Press release: Aviva Investors Irish liquidity funds: Article 8 option

Published: Feb 2022

25th January 2022 – Aviva Investors, the global asset management arm of Aviva PLC, has achieved Article 8 classification under the EU’s Sustainable Finance Disclosure Regulation (SFDR) for most of its £38.5 billion Irish OEIC Liquidity Fund range1.

Newspaper press release

The £262 billion asset manager aims to achieve Article 8 status for the majority of its collective funds domiciled in Europe by the end of the second quarter, subject to regulatory approval. This is part of its ambition to help create a more sustainable, inclusive and low-carbon future for its clients and society, while supporting Aviva Plc to become a net zero company by 2040.

Aviva Investors’ current A8 offering includes the Sustainable Transition range, which invests across climate, natural capital and social themes in credit, equities and real assets.

SFDR came into effect in March 2021 with the goal of making the sustainability profile of funds more comparable and easier to understand for investors. The legislation categorises products into specific types and includes metrics for assessing the environmental, social and governance (ESG) impacts of the investment process for each fund.

Article 8 funds promote environmental or social characteristics, or a combination of those characteristics, provided the companies in which investments are made follow good governance practices.

Anthony Callcott, Global Head of Liquidity Sales at Aviva Investors, said: “This is a key milestone for Aviva Investors and we are pleased that nearly all of our liquidity funds have been classified as A8 early in what is sure to be a transformative process for the asset management industry. Responsible investment is at the core of our A8 offering for the liquidity market and we believe this is the right solution for our clients.”

Caroline Hedges, Head of Credit at Aviva Investors, said: “Our clients are increasingly demanding that their money is invested in a responsible manner to help create the type of retirement they want for themselves and their families. This is embedded in the philosophy and investment approach we apply to the A8 liquidity range and sets a benchmark for what we want to achieve across our wider credit business.”

Aviva Investors has updated EU fund prospectuses, website product information and Key Investor Information Documents to align with SFDR rules where applicable, along with updated responsible investment policies.”

Key Risks

  • The value of an investment and any income from it can go down as well as up. Investors may not get back the original amount invested.

  • The Funds invest in money market instruments such as short term bank debt the market prices/value of which can rise as well as fall on a daily basis. Their values are affected by changes in interest rates, inflation and any decline in creditworthiness of the issuer.

  • This is not a guaranteed investment, an investment in a Money Market Fund is different from an investment in deposits and can fluctuate in price meaning you may not get back the original amount you invested. This investment does not rely on external support for guaranteeing liquidity or stabilising the NAV per unit or share. The risk of loss of the principal is to be borne by the investor.

Footnote
  1. The Sterling Government Liquidity Fund will remain under Article 6 of SFDR.
    The Aviva Sterling Short Term Money Market Fund will become Article 8.
    The Aviva Euro Short Term Money Market Fund will become Article 8.
    The Aviva USD Short Term Money Market Fund will become Article 8.
    The Aviva Sterling Plus Liquidity Fund will become Article 8.

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