Delivering green skills

The final component of our strategy concerns the legacy we leave in the communities we operate in. Developing skills for today’s communities and the next generation is essential to protecting the fund’s license to operate, as well as helping to disclose our local planning obligations. Our project-based activities also contribute to growing engineering and construction skills, with the aim of supporting employment in sectors which we believe will grow over the long term.

Construction skills

We are developing Curtain House, a Grade II listed building located on Curtain Road in Hoxton. The area surrounding the asset is subject to pockets of deprivation, a younger than average professional demographic and ethnically diverse local community. An assessment of local policy analysis prior to planning submission showed a need for organisations operating in the area to support local employment, and creative and cultural causes.  

Prior to starting on site, we worked with the main contractor, RED construction, to develop meaningful social value targets for the project. Social value targets were informed by a detailed local needs analysis, plus our in-house social value benchmark targets for construction. We partnered with The Land Collective (TLC), a London-based education charity looking for support for their careers programme, Black Girls in Property. We engaged over 14 months with a cohort of 15 students.

Recognising the students’ interest in architecture, the architect on this project, Anomaly, worked with us to organise an exhibition of the site’s design, career talks from project team members and a site tour along with 8 volunteers. In February 2024, we hosted a cohort for a 3-day STEM careers employability course at our Hoxton office, which was supported by 14 volunteers from Aviva Investors and the building design and construction team. During the students’ summer break, RED Construction hosted work experience placements for 2 students.

This initiative signified our shared commitment to delivering social value in communities where we invest and supporting social mobility in the built environment. Repeat employer engagements are highly valuable to young people considering the next steps in their career.

Peatland restoration
and forestry

As a key part of Scotland’s green recovery and Just Transition to Net Zero, restored peatland not only acts as a carbon store, but restoration is critical in supporting rural economies through the creation and development of land-based jobs and skills across Scotland. NatureScot’s Peatland ACTION Programme has been in place since 2012, and works together with partners and landowners to engage, educate, and restore peatlands across Scotland.

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Aviva Investors and Par Equity have established an investment vehicle that has acquired 6,300 hectares of moorland in the Glen Dye area of West Aberdeenshire, with plans for extensive peatland restoration and new planting initiatives. The partnership is also focused on generating positive social outcomes within the local community. This includes creating employment opportunities and providing training and skills development.

In 2023, a training day was conducted in partnership with Scottish Woodlands and NatureScot, aimed at training 14 machinery operators in peatland restoration techniques. Participants observed restoration work in progress, gaining firsthand experience of various restoration methods and engaged in discussions on project rendering processes and funding available to landowners and contractors.

Throughout 2024, we have played an active role in the coordination of a new partnership with the Scottish School of Forestry.

The partnership will deliver an education programme between January and March 2025, aligning with seasonal requirements. The programme will attract new entrants to the sector and deliver new skills to the course participants. The course is funded by Aviva Investors.

The training initiative in 2023 delivered 84 training hours and laid the groundwork for the 2024 course. Both initiatives are aimed at enhancing the skills of both new and existing workforces involved in peatland and woodland restoration endeavours. The partnership underscores Aviva Investors aim to deliver social outcomes , promoting skill development opportunities and local employment while supporting environmental conservation efforts.

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Digital engineering

Employer-led career education and outreach is a vital component of supporting young people into the workforce. According to the Careers & Enterprise Company, careers education improves employment outcomes for young people, helps tackle disadvantage, and positively benefits business and the economy, reducing not in employment, education or training (NEET) rates and improving talent pipelines for employers. Careers education is a priority theme within Aviva Investors social value programme, delivered through a range of engagement types including employability sessions, mock interviews, and work experience.

In 2023, Aviva Investors’ investment in ITS Technology Group Limited (“ITS”), a leading B2B wholesale Alternative Network Provider, delivered significant social value outcomes through strategic collaborations with local partners. Notably, the company successfully initiated 50 new local job placements, spanning its operational hubs.

ITS also delivered 17 comprehensive education outreach and career support activities, with a total of 77.5 employee volunteer hours provided to support this. Furthermore, ITS facilitated 16 days of meaningful work experience for four placement students, encompassing mock interviews, career carousels, and tailored employment and skills workshops in collaboration with local schools and colleges. A highlight included a collaborative effort with Career Connect, resulting in a dedicated day of mock interviews in June 2023. The positive feedback received from both staff and students underscores ITS’s role in promoting social value in the areas where Aviva Investors invests.

Key risks

Investment risk: The value of an investment and any income from it can go down as well as up and can fluctuate in response to changes in currency and exchange rates. Investors may not get back the original amount invested. Past performance is not a guide to future returns.

Real estate/infrastructure risk: Where funds are invested in real estate or infrastructure investors may not be able to switch or cash in an investment when they want because the assets may not always be readily saleable. If this is the case we may defer a request to switch or cash in units.

Valuation risk: Investors should also bear in mind that the valuation of real estate is generally a matter of valuers’ opinion rather than fact. Valuations for other assets may also contain subjective elements and are unlikely to be based on a public market price.

Illiquidity risk: Recipients of this marketing should note the inherent illiquidity of the intended investment universe and the fund should not be considered suitable for investors with a short-term investment outlook.

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Asset backed securities: If these securities are paid off substantially earlier or later than expected, lower earnings than expected may be experienced. These securities also carry market risk, interest rate risk, and above-average liquidity risk.

ESG risk: Investing on basis of ESG factors may limit the choice of investments and performance of the fund may be impacted (either positively or negatively).

Dealing arrangement risk: Where a fund requires investors to sign up to a Subscription Agreement, committing to subscribe an amount to the relevant fund, these amounts will only be drawn down from investors at the discretion of the ACS Manager and Units will only be issued to the investors based on the prevailing net asset value at that point.

Redemption arrangements: Specific redemption arrangements are in place for this fund. These may not fully reflect the time typically needed to sell, liquidate or close out the assets in which fund invests in. This means there will be significant time lag between instructions being accepted and processed and investors will bear the risk of any unit price movements in these periods.

Uninsured losses: As the fund is a pooled investment fund, the total assets may be at risk in the event of an uninsured liability to third parties.

Development and construction risks: Where the fund has exposure to investments involving purchase of land for development and require permissions/licenses and permits to be obtained first, the fund may receive little or no icome during this time. There may also be delays in the administration of these requests and there is also the risk the relevant authority refuses to grant them.

Risks related to external counterparties: The Fund could lose money if an entity with which it does business becomes unwilling or is unable to meet its obligations to the Fund.

Investment in unregulated collective investment schemes: Investments in unregulated collective investment schemes are generally considered high risk investments than in regulated schemes. There are limited if any, restrictions to how they are managed. They are also valued less frequently and there is a risk that any market movements will not be reflected in the daily price of the fund and that investors may miss out on unrealised profits from underlying investments. Investors should be aware that market timing is strictly prohibited. Liquidity of unregulated schemes is not assured and cannot be relied upon to meet redemption requests as and when made. Lack of liquidity may affect the value and lead to units being suspended.

Net zero and carbon removal certificates: To formally offset carbon emissions carbon removal certificates have to be formally retired and once this happens, they cease to have value. This means when the certificates are retired this will impact financial performance.

Investments outside of commitment queues: Potential unitholders may be impacted by elongated timescales for drawing down commitments into the fund and the fund may experience cash drag, impacting on returns.

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Important information

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Except where stated as otherwise, the source of all information is Aviva Investors Global Services Limited ("Aviva Investors"). Unless stated otherwise any opinions expressed are those of Aviva Investors. They should not be viewed as indicating any guarantee of return from an investment managed by Aviva Investors nor as advice of any nature.

The Aviva Investors Climate Transition Real Assets Fund is a non-UCITS retail scheme which is operated as a FAIF. For further information please read the latest Key Investor Information Document and Supplementary Information Document. The Prospectus and the annual and interim reports are also available on request. Copies in English can be obtained free of charge from Aviva Investors UK Fund Services Limited, 80 Fenchurch Street, London, EC3M 4AE. You can also download copies from our website.

Issued by Aviva Investors UK Fund Services Limited. Registered in England No 1973412. Authorised and regulated by the Financial Conduct Authority. Firm Reference No. 119310. Registered address: 80 Fenchurch Street, London, EC3M 4AE. An Aviva company.

671758 – 31/12/2025