What is changing
- Currently, we offer access to a range of external Funds across our heritage products. In the first half of 20231, we are closing some of these funds and transferring customers to funds managed by Aviva Investors, many of which have a greater focus on sustainability (or ESG (Environmental, Social, and Governance) as it’s also known).
- We’re changing the Funds that make up the Default Investment Strategy (DIS) For Heritage Friends First PRSA Customers (This does not affect Heritage Aviva PRSA Products):
- the Managed Fund will be replaced by the Aviva Multi-Asset ESG Active 5 Fund.
- the Fixed Interest Fund will be replaced by the Aviva Bond Fund.
The de-risking process will continue as is. Your charges and the risk ratings of the Funds will remain the same. The asset classes of the replacement Funds are broadly aligned with the closing Funds. Aviva Investors will manage the replacement Funds. You can find more information on these replacement Funds in the Your Investment Guide.
We’re writing to all customers impacted by these changes in January/February 2023. If you are happy with the changes proposed, you do not need to do anything.
Read on to learn more about these changes and download some supporting content on our funds.
Changes to our Fund Range in the first half of 2023¹
Multi-Asset Funds closing in the first half of 2023¹ and moving to the Aviva Multi-Asset ESG Active 5
Multi-Asset Funds closing in the first half of 2023¹ and moving to the Aviva Multi-Asset ESG Passive Plus 5
Equity Funds closing in the first half of 2023¹ and moving to the High Yield Equity Fund
Equity Funds closing in the first half of 2023¹ and moving to the Global Leaders Equity Fund
Equity Funds closing in the first half of 2023¹ and moving to the Global Equity ESG Passive Fund
Equity Funds closing in the first half of 2023¹ and moving to the European Equity ESG Passive Fund
Emerging Markets Equity Funds closing in the first half of 2023¹ and moving to the Global Emerging Market Equity Fund
Emerging Markets Equity Funds closing in the first half of 2023¹ and moving to the Emerging Market Index Fund
Funds closing in the first half of 2023¹ and moving to the Bond Fund
Bond Funds closing in the first half of 2023¹ and moving to the Long Bond Fund
Bond Funds closing in the first half of 2023¹ and moving to the Corporate Bond Fund
Cash Funds closing in the first half of 2023¹ and moving to the Cash Fund
Funds Changing Asset Class and Moving to Cash in the first half of 2023¹
Changes to the Funds that make up the Default Investment Strategy (DIS)
for Heritage Friends First PRSA customers
What is a Default Investment Strategy (DIS)?
The DIS is a ready-made and automatic investment strategy required by law to be applied to a PRSA contract unless the pension investor indicates they want to select their investment funds. It is most suitable for pension investors who are not comfortable and do not want to make a fund choice. The DIS aims to balance the long-term effects of risk and return through investing in two different funds:
- a more aggressive fund in the growth phase of the customer’s retirement savings journey. Here the DIS aims to grow their money as retirement is a long way off.
- a lower-risk fund in the consolidation phase of the customer’s retirement savings journey. Here the DIS aims to automatically and gradually move their pension savings to a lower-risk fund as they near their retirement date. The client needs to inform Aviva of their retirement date so we can trigger the automated derisking process.
How is Aviva’s heritage Friends First customers DIS changing?
We’ve made some important changes to our heritage Friends First customers DIS that are explained in the following table:
|Old DIS||New DIS|
|What’s the same|| |
1. Risk ratings of Funds
2. Asset class of Funds
3. 5-Year derisking period
4. Same Annual Management Charge
|What’s different|| |
The Funds that make up the DIS are changing
Growth Phase Fund:
Consolidation Phase Fund:
Fixed Interest Fund
Growth Phase Fund:
Multi-Asset ESG Active 5 Fund
Consolidation Phase Fund
The SFDR designation3 of the Funds that make up the DIS are different
Net fund updates
Tools and resources
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Important information to consider.
Warning: If you invest in this product you may lose some or all of the money you invest.
Warning: Past performance is not a reliable guide to future performance.
Warning: The value of your investment may go down as well as up.
Warning: These funds may be affected by changes in currency exchange rates.
1. Aviva reserves the right to defer the closure date if market conditions are not suitable and we deem it is in the customer’s best interest to do so.
2. Investment risk ratings are correct on 30 November 2022. Each fund has a risk rating based on a scale of 1 to 7, with 1 being the lowest and 7 the highest. Generally, the higher the rating, the more risk your investment takes to achieve a greater potential reward. However, the risk of losing some or all of your investment will also increase. Please see the ' Your Investment Guide' brochure for more information on how we risk rate our funds.
3. These regulations are the Sustainable Finance Disclosure Regulations (SFDR). The European Commission designed the Sustainable Finance Disclosure Regulation (SFDR) to improve transparency about sustainability risks and impacts on products in the market and to make it easier for investors to distinguish and compare the available sustainable investing strategies.
Understanding the three categories of investments under these regulations:
- Article 9 Investments (or Dark Green Investments): These investments specifically have sustainable investments as their objective.
- Article 8 Investments (or Light Green Investments): These investments promote environmental or social characteristics and integrate sustainability into their investment process in a binding manner.
- Article 6 Investments: These investments do not promote having ESG factors or objectives or integrate sustainability into their investment process in a binding manner.
For more information on SFDR and our approach to sustainability, please see our sustainability policy which you can download on www.aviva.com. Article 8 Funds promote environmental and social characteristics but do not have a sustainable investment objective.
Aviva Life & Pensions Ireland Designated Activity Company, a private company limited by shares. Registered in Ireland No. 165970. Registered office at Building 12, Cherrywood Business Park, Loughlinstown, Co. Dublin, D18 W2P5. Aviva Life & Pensions Ireland Designated Activity Company, trading as Aviva Life & Pensions Ireland and Friends First, is regulated by the Central Bank of Ireland. Tel (01) 898 7950.