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Changes to Aviva funds

Introduction to changes

At Aviva, we’re committed to making sure we deliver a level of service that people expect from us. We are currently reviewing our investment funds and are making a number of changes.
There are several elements within this review:

  1. Changes to My Future Plus and Future Focus
  2. Changes to Diversified Assets Funds (DAFs)
  3. Changes to My Future Funds
  4. Fund of Funds changes
  5. Funds review
  6. Lifestyle/Lifetime changes

Communicating the changes

We are communicating to all advisers, employers and trustees and you can find out about the changes by clicking the tabs above.

My Future Plus and Future Focus changes

As part of our ongoing commitment to provide members with robust investment solutions, we have reviewed the My Future Plus and Future Focus solutions and will be making changes to the management and composition of the funds used within them. There is no action you or your clients and customers need to take as a result of these changes.

Additional information

My Future Plus and Future Focus changes – questions and answers

My Future Plus and Future Focus changes – brochure

Example Trustee letter

Example Employer letter

Example Customer letter - My Future Plus

Example Customer letter - Future Focus

Changes to Diversified Assets Funds (DAFs)

We will be making changes to the Diversified Assets Funds (DAFs). We believe these changes will deliver an improved investment outcome for our clients and customers.

There is no action you or your clients and customers need to take as a result of these changes.

Additional information

Changes to Diversified Assets Funds – questions and answers

Example Customer letter

My Future funds changes

We have been reviewing our My Future investment solution and will be making changes to the way the funds used within it are managed. We have appointed BlackRock to oversee the asset allocation model of these funds. The underlying funds in which they in turn invest will continue to be passively managed by BlackRock. The exception is the My Future Annuity Fund, which will invest in the L&G Pre-Retirement Fund.

There is no action you or your clients and customers need to take as a result of these changes.

Additional information

My Future changes - questions and answers
My Future changes - brochure
Letter to employers
Letter to employers if the scheme is an ex-AXA Sun Life group pension product, taken out after 01.11.2002

Changes to Fund of Funds

We have reviewed our range of Fund of Funds and have made changes to some of these funds and the assets they hold. We believe these changes will improve the investment outcome for pension scheme members.

Two funds are changing:

  • Aviva Pension Balanced Index Fund of Funds will change to Aviva Pension Multi-Asset Index Growth
  • Aviva Pension Cautious Index Fund of Funds will change to Aviva Pension Multi-Asset Index Cautious
We are changing the investments held by these funds. They will no longer invest directly in a range of other funds, but instead each will invest into a single fund, managed to an investment mandate set and governed by Aviva. We have appointed BlackRock to oversee the asset allocation model of these funds. The underlying funds in which they in turn invest are passively managed by BlackRock.

 

Example letter to employers
Example letter to trustees
Example letter to employees
Template letter for trustees to use to write to members
Questions and answers

The following Fund of Funds used to be managed by our in-house Aviva UK Insurance investment team. The funds are now managed on our behalf by Schroders, to an investment mandate Aviva sets and governs.

  • Balanced Fund of Funds
  • Balanced Index Enhanced
  • Cautious Fund of Funds
  • Global Equity Fund of Funds
  • Multiple Fund of Funds

The Fund of Funds used to be managed by our in-house Aviva UK Insurance investment team. The funds are now managed on our behalf by Schroders to an investment mandate Aviva sets and governs.

Example letter to employers
Example letter to trustees
Example employee letter – Balanced Fund of Funds
Example employee letter - Balanced Index Enhanced
Example employee letter – Cautious Fund of Funds
Example employee letter - Global Equity Fund of Funds
Example employee letter - Multiple Fund of Funds

Funds review

We will be closing a number of relatively small funds across all our ranges. The process will take around two years to complete, until the end of 2019.

We will be reducing the number of funds on our platforms. However, we will also be launching new funds where appropriate to ensure we are still providing sufficient choice as well as enhancing the range available.

A list of funds we have announced will close
Questions and answers
Example customer letter

Please note the funds review is an ongoing process. As funds are confirmed for closure we update the list of funds we have announced will close. Please also note that, outside of our review, we routinely close funds for a variety of reasons as part of our normal management process. This list therefore contains details of all the fund closures undertaken by us, not just the ones that form part of the review. The notice letters we send explain the reason for the fund closing.

Some closing funds may be mapped to different replacement funds than those listed for certain schemes. For example, some Trust schemes or schemes where charge capping applies. These are highlighted with an asterisk (*) after the replacement fund name. Please check with your Aviva contact to confirm the fund mapped for your scheme.

Lifestyle/Lifetime changes

In a recent letter we informed you that we’re changing the way some of our investment solutions work. Some are restructuring, and some are closing. This means the names of some of them may have changed. The table below shows which investment solutions are impacted and the names that will apply before and after the changes. If an investment solution is closing, then its replacement is shown in the right-hand column.

Investment solution name before changes Investment solution name after changes 
3 Year Lifestyle investment programme 5 Year Lifestyle investment programme
5 Year Lifestyle investment programme No change
10 Year Lifestyle investment programme No change 
5 Year Lifetime investment programme No change
10 Year Lifetime investment programme No change
Mixed Investments Annuity Lifestyle approach Mixed Investments Universal Lifestyle approach
Mixed Investments Drawdown Lifestyle approach Mixed Investments Universal Lifestyle approach
Global Shares Annuity Lifestyle approach Global Shares Universal Lifestyle approach
Global Shares Drawdown Lifestyle approach Global Shares Universal Lifestyle approach
Stakeholder Mixed Investments Annuity Lifestyle approach Stakeholder Mixed Investments Universal Lifestyle approach
Stakeholder Mixed Investments Drawdown Lifestyle approach Stakeholder Mixed Investments Universal Lifestyle approach
Self-style (all variants) approach Self-style Universal approach
Phased Switching (all variants) approach Phased Switching Universal approach

The following drop-downs describe how each investment solution will work in the future. How members are affected will depend on how far they are from their retirement date. Each drop-down also includes examples of customer communications under all scenarios (although the examples are letters, some customers will have been informed via email).

5 Year Lifestyle investment programme

Objectives

This programme aims to provide growth in the early years, although the value of your pension pot could fluctuate. It is designed to prepare your pension pot for flexible access at your chosen retirement age, including:

  • income drawdown
  • withdrawing all the money in your pension pot
  • buying an annuity
  • leaving their money where it is and making their choices later.

How it works

  • Early years (up to 5 years before a member's chosen retirement age)
    The programme invests in the pre-lifestyle investment programme fund(s), which are determined by the scheme unless a member has made their own investment choice.

  • From 5 years to your chosen retirement age
    A member’s money gradually moves into the Aviva Pension My Future Consolidation fund, which continues to provide the potential for growth, but aims to avoid large fluctuations in the value of their pension pot.

The exact fund split when a member starts investing depends on how far from their chosen retirement age they are at that time. The diagram below shows how we’ll split investment between funds as they head towards their chosen retirement age.

The diagram below shows how we’ll split investment between funds as they head towards their chosen retirement age.

5 year lifestyle

For members who will be invested in this solution going forward, we will have:

  • Issued a letter to their employer pointing them to a dedicated employer microsite.
  • Issued a communication to members already de-risking.
  • Issued a communication to members moving from the 3 Year Lifestyle, and between 3 and 5 years from their retirement date.
  • Issued a communication to members moving from the 3 Year Lifestyle, and more than 5 years from their retirement date.
  • Issued a communication to members already in the 5 Year Lifestyle, and more than 5 years from their retirement date.
  • Issued an endorsement with changes to their T&Cs.
  • Made available a Q&A document on a dedicated customer microsite.

10 Year Lifestyle investment programme

Objectives

This programme aims to provide growth in the early years. It is designed to prepare a member’s pension pot for flexible access at their chosen retirement age, including:

  • income drawdown
  • withdrawing all the money in their pension pot
  • buying an annuity
  • leaving their money where it is and making their choices later.

How it works

  • Early years (up to 10 years before a member's chosen retirement age)
    The programme invests in the pre-lifestyle investment programme fund(s), which are determined by the scheme unless a member has made their own investment choice.

  • From 10 years to your chosen retirement age
    A member’s money gradually moves into the Aviva Pension My Future Consolidation fund, which continues to provide the potential for growth, but aims to avoid large fluctuations in the value of their pension pot.

The exact fund split when a member starts investing depends on how far from their chosen retirement age they are at that time. The diagram below shows how we’ll split investment between funds as they head towards their chosen retirement age.

10 year lifestyle

For members who will be invested in this solution going forward, we will have:

5 Year Lifetime investment programme

Objectives

This programme aims to provide growth in the early years. It is designed to prepare a member’s pension pot for flexible access at their chosen retirement age, including:

  • income drawdown
  • withdrawing all the money in their pension pot
  • buying an annuity
  • leaving their money where it is and making their choices later.

How it works

  • Early years (up to 5 years before your chosen retirement age)
    The programme invests in the Aviva Pension BlackRock (60:40) Global Equity Index Tracker fund, which aims to provide growth.

  • From 5 years to a member's chosen retirement age
    A member’s money gradually moves into the Aviva Pension My Future Consolidation fund, which continues to provide the potential for growth, but aims to avoid large fluctuations in the value of their pension pot.

The exact fund split when a member starts investing depends on how far from their chosen retirement age they are at that time. The diagram below shows how we’ll split investment between funds as they head towards their chosen retirement age.

5 year lifetime

For members who will be invested in this solution going forward, we will have:

10 Year Lifetime investment programme

Objectives

This programme aims to provide growth in the early years. It is designed to prepare a member’s pension pot for flexible access at their chosen retirement age, including:

  • income drawdown
  • withdrawing all the money in their pension pot
  • buying an annuity
  • leaving their money where it is and making their choices later.

How it works

  • Early years (up to 10 years before your chosen retirement age)
    The programme invests in the Aviva Pension BlackRock (60:40) Global Equity Index Tracker fund, which aims to provide growth.

  • From 10 years to member's chosen retirement age
    A member’s money gradually moves moves into the Aviva Pension My Future Consolidation fund, which continues to provide the potential for growth, but aims to avoid large fluctuations in the value of their pension pot. which continues to provide the potential for growth, but aims to avoid large fluctuations in the value of their pension pot.

The exact fund split when a member starts investing depends on how far from their chosen retirement age they are at that time. The diagram below shows how we’ll split investment between funds as they head towards their chosen retirement age.

10 year lifetime

For members who will be invested in this solution going forward, we will have:

Global Shares Universal Lifestyle approach

Objectives

This programme aims to provide growth in the early years. It is designed to prepare a member’s pension pot for flexible access at their chosen retirement age, including:

  • income drawdown
  • withdrawing all the money in their pension pot
  • buying an annuity
  • leaving their money where it is and making their choices later.

How it works

This investment approach goes through two stages. Members can only join this lifestyle approach if they have more than 10 years to their chosen retirement age.

Stage 1: up to 10 years before a member’s chosen retirement age

In the early years, the approach invests in two (70% in the Aviva UK Equity fund and 30% in the Aviva Global Equity fund), which aim to provide growth.

Stage 2: 10 years before a member’s chosen retirement age

We invest all new payments in the Aviva My Future Focus Consolidation fund, which continues to provide the potential for growth, but aims to avoid large fluctuations in the value of a member's pension pot.

During this time, we also gradually move your existing investment into this fund, month-by-month.

The table below shows how we invest a member's money in more detail.

Stage 1 Stage 2
At the start (but only if a member has more than 10 years before their chosen retirement age) 10 years before a member's chosen retirement age (if they have been using this approach prior to this time)
70% of new payments All new payments
Aviva UK Equity fund Aviva My Future Focus Consolidation fund
30% of new payments The rest of their pension pot
Aviva Global Equity fund Moved monthly into this fund

For members who will be invested in this solution going forward, we have yet to finalise our communication strategy. Details of this and example customer letters will be added to this site in the week commencing Monday 5 August. In the meantime, please feel free to visit the dedicated customer microsite, which is already up and running.

Mixed Investments Universal Lifestyle approach

Objectives

This approach aims to provide growth in the early years.It is designed to prepare a member’s pension pot for flexible access at their chosen retirement age, including:

  • income drawdown
  • withdrawing all the money in their pension pot
  • buying an annuity
  • leaving their money where it is and making their choices later.

How it works

This investment approach goes through two stages. Members can only join this lifestyle approach if they have more than 10 years to their chosen retirement age.

Stage 1: up to 10 years before a member’s chosen retirement age

In the early years, the approach invests in theAviva Mixed Investment (40-85% Shares) fund, which aims to provide the potential for growth, but aims to avoid large fluctuations in the value of a member’s pension pot.

Stage 2: From 10 years to a member’s chosen retirement age

We invest all new payments in the Aviva My Future Focus Consolidation fund, which continues to provide the potential for growth, but aims to avoid large fluctuations in the value of your pension pot.

During this time, we also gradually move any existing investment into this fund, month-by-month.

The table below shows how we invest a member’s money in more detail.

Stage 1 Stage 2
At the start (but only if a member has more than 10 years before their chosen retirement age) 10 years before a member’s chosen retirement age (if they have been using this approach prior to this time)
New payments All new payments
Aviva Mixed Investment (40-85% Shares) fund Aviva My Future Focus Consolidation fund
  The rest of their pension pot
  Moved monthly into this fund

For members who will be invested in this solution going forward, we have yet to finalise our communication strategy. Details of this and example customer letters will be added to this site in the week commencing Monday 5 August. In the meantime, please feel free to visit the dedicated customer microsite, which is already up and running.

Stakeholder Mixed Investments Universal Lifestyle approach

Objectives

This programme aims to provide growth in the early years. It is designed to prepare a member’s pension pot for flexible access at their chosen retirement age, including:

  • income drawdown
  • withdrawing all the money in their pension pot
  • buying an annuity
  • leaving their money where it is and making their choices later.

How it works

This investment approach goes through two stages.

If a member has more than 5 years before their chosen retirement age:

Stage 1: up to 5 years before a member's chosen retirement age

In the early years, the approach invests in theAviva Mixed Investment (40-85% Shares) fund, which aims to provide growth.

Stage 2: 5 years before a member's retirement age

We continue to invest all new payments in the Aviva Mixed Investment (40-85% Shares) fund.

During this time, we also gradually move any existing investment into the Aviva My Future Focus Consolidation fund, month-by-month.

The table below shows how we invest a member's money in more detail.

Stage 1 Stage 2
At the start (but only if a member has more than 5 years before their chosen retirement age) 5 years before a member’s chosen retirement age (if they have been using this approach prior to this time)
All payments All new payments
Aviva Mixed Investment (40-85% Shares) fund Aviva Mixed Investment (40-85% Shares) fund
  The rest of your pension pot
  Moved monthly into the Aviva My Future Focus Consolidation fund

If a member has less than 5 years until their chosen retirement age when they start their plan, all new payments will be invested in the Aviva My Future Focus Consolidation fund. They won’t be invested in the Aviva Mixed Investment (40-85% Shares) fund.

For members who will be invested in this solution going forward, we have yet to finalise our communication strategy. Details of this and example customer letters will be added to this site in the week commencing Monday 5 August. In the meantime, please feel free to visit the dedicated customer microsite, which is already up and running.

Self-style Universal approach

Objectives

This programme aims to provide growth in the early years. It is designed to prepare a member’s pension pot for flexible access at their chosen retirement age, including:

  • income drawdown
  • withdrawing all the money in their pension pot
  • buying an annuity
  • leaving their money where it is and making their choices later.

How it works

This investment approach goes through two stages. Members can only join this investment approach if they have more than 10 years until their chosen retirement age.

Stage 1: up to 10 years before a member's chosen retirement age

In the early years, the approach invests in 1-2 funds that the member has chosen, which should typically aim to grow their pension pot.

If they choose 2 funds, they need to specify how they want to split their money between them (e. 50/50%, 65/35%).

Stage 2: 10 years before a member’s chosen retirement age

We invest all new payments in the Aviva My Future Focus Consolidation fund, which continues to provide the potential for growth, but aims to avoid large fluctuations in the value of a member’s pension pot.

During this time, we also gradually move any existing investment into this fund, month-by-month.

The table below shows how we invest a member’s money in more detail.

Stage 1 Stage 2
At the start (but only if a member has more than 10 years before their chosen retirement age) 10 years before a member’s chosen retirement age (if they have been using this approach prior to this time)
All new payments
Fund A
All new payments
e.g. Aviva Property Fund Aviva My Future Focus Consolidation fund
Fund B (optional) The rest of your pension pot
e.g. Aviva UK Equity Fund Moved monthly into this fund

For members who will be invested in this solution going forward, we have yet to finalise our communication strategy. Details of this and example customer letters will be added to this site in the week commencing Monday 5 August. In the meantime, please feel free to visit the dedicated customer microsite, which is already up and running.

Phased Switching Universal approach

Objectives

This programme aims to provide growth in the early years. It is designed to prepare a member’s pension pot for flexible access at their chosen retirement age, including:

  • income drawdown
  • withdrawing all the money in their pension pot
  • buying an annuity
  • leaving their money where it is and making their choices later.

How it works

This investment approach goes through two stages. Members can only join this investment approach if they have more than 5 years to their chosen retirement age.

Stage 1: up to 5 years before a member’s chosen retirement age

In the early years, the approach invests in up to 50 funds that the member has chosen, which should typically aim to grow their pension pot.

Members need to say how they want to split their money between the funds they choose..

Stage 2: 5 years before a member’s chosen retirement age

We continue to invest all new payments in the funds used in stage 1.

During this time, we also gradually move any existing investment into the Aviva My Future Focus Consolidation fund, month-by-month.

The table below shows how we invest a member’s money in more detail.

Stage 1 Stage 2
At the start (but only a member has more than 5 years before their chosen retirement age) 5 years before a member’s chosen retirement age (if they have been using this approach prior to this time)
New payments All new payments
Up to 50 funds chosen by the member Continue with funds used in stage 1
  The rest of your pension pot
  Moved monthly into the Aviva My Future Focus Consolidation fund

For members who will be invested in this solution going forward, we have yet to finalise our communication strategy. Details of this and example customer letters will be added to this site in the week commencing Monday 5 August. In the meantime, please feel free to visit the dedicated customer microsite, which is already up and running.


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WA03443 07/2019