We're making changes to some Aviva investment funds and solutions

For employers and trustees

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 solutions and are making a number of changes.

The review consists of the following elements:

  • Closure of My Future Advantage
  • My Future Plus changes
  • Future Focus changes
  • Lifestyle/Lifetime changes
  • My Future funds changes

And we have the following ongoing developments

  • Funds review
  • Pension Fund changes
  • Changes to BlackRock Aquila funds

 

Communicating the changes

Communications started in January 2018 and we expect to finish by the end of 2020.

For more information, or if you have any further questions, please speak to your usual Aviva contact. 

 

Current changes

Closure of My Future Advantage

We have decided to close the My Future Advantage investment programme and funds.  Members within the My Future Advantage investment programme will move into our new My Future Focus investment programme. 

Members who currently invest directly in a My Future Advantage fund outside of the My Future Advantage investment programme will have their investment transferred to the relevant new My Future Focus fund.

My Future Advantage closure – Questions and answers

Trustee template letter – Closure of My Future Advantage investment programme

Trustee template letter – Closure of My Future Advantage funds

 

My Future Plus changes

We have been reviewing the My Future Plus investment solution and will be making changes to the management and composition of the funds used within it. We believe these changes will deliver an improved investment outcome for our clients and customers.

 

For members currently invested in the My Future Plus funds, the changes will result in a reduction in fund charges.  The new solution will be called “My Future Focus”.

 

My Future Plus changes – Questions and answers

My Future Plus and Future Focus changes - Brochure

Trustee template letter - Changes to My Future Plus Investment Programme (Default)  

Trustee template letter - Changes to My Future Plus Target Drawdown  

Trustee template letter - Changes to My Future Plus Target Cash

Trustee template letter - Changes to My Future Plus Target Annuity

Trustee template letter - Changes to My Future Plus Funds     

Future Focus changes

We have been reviewing Future Focus will be making changes to its design, including to the make-up of the glidepaths. Future Focus will be renamed “My Future Focus”.

 

Future Focus changes – Questions and answers

My Future Plus and Future Focus changes - Brochure

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

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

10 Year Lifestyle investment programme

5 Year Lifetime investment programme

10 Year Lifetime investment programme

Ongoing developments

Funds review

Over the next two years we will be closing a number of funds with relatively small assets under management. Although we will be reducing the number of funds on our products, we may also add funds to some products to maintain sufficient choice and to enhance the range available.

 

Trustees: Each time a fund closes that impacts you, as the trustee, or your members if you are a pension trustee, we will write to you. In the letters we will ask you to let us know which fund or funds you wish to select as a replacement for the closing fund. We will provide details of an alternative fund into which your member’s investment will be moved if we do not receive your instruction by the deadline stated in our letter. Pension trustees may wish to inform members about the closure and a letter template to help you can be found here.

 

Employers: Each time a fund closes in which your members are invested we will write to them. In this letter we will ask them to let us know into which fund or funds they wish to move their investment. We will provide details of an alternative fund into which their investment will be moved if we do not receive their instruction by the deadline stated in our letter. An example of the letter being sent to members can be found here.

 

Please note the funds review is an ongoing process. As funds are confirmed for closure we update the list of impacted funds. 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 a fund closing.

 

Some closing funds may be mapped to different replacement funds than those listed below 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.

Funds review questions and answers

Pension Fund changes

Pension Fund Changes

We have been reviewing our range of pension investments and will be making changes to the investments in your pension scheme. We believe these changes will deliver more flexibility and options for your scheme members.

Your Aviva pension scheme was initially designed to prepare members for taking an annuity when they retire, but changes in pensions legislation mean more options are now available. As you currently have members invested in either My Future Annuity or Lifestyle Retirement 2015, 2020, 2025 funds, we are getting in touch to let you know about these changes;

 

Summary of the changes;

  • Your scheme investment will no longer target an annuity purchase
  • Your scheme’s new default investment option for any new joiners pension contributions will be My Future ‘Universal’
  • My Future ‘ Universal’ is designed for members who have not yet decided how they want to use their pension savings and would prefer to keep their options open.
  • Existing investments in either My Future Annuity or Lifestyle Retirement 2015 or 2020 will automatically be move to My Future ‘Universal’
  • Existing investments in Lifestyle Retirement 2025 fund will automatically move to Lifestyle Retirement 2030 fund, this more closely matches the risk profile of the current fund but also enables members to keep their options open at retirement.
  • There are no changes to charges or additional costs as a result of these changes.

 

Employers: There is no action you need to take as a result of these changes. We will write to your employees in the next few months to tell them what’s happening.

Trustees: There is no action you need to take as a result of these changes, but you may wish to inform your members about them and  letter templates to help you can be found below.

 

Template letter for trustee use - My Future

Template letter for trustee use - Lifestyle Retirement Funds

My Future – Brochure

Lifestyle Retirement Funds – Brochure

BlackRock Aquila

During 2017 we worked with BlackRock to change the holdings of some of our pension funds which invested in BlackRock Aquila funds. The holdings of these funds changed from investing in BlackRock Aquila Connect funds to investing in equivalent “tax transparent funds” (TTFs) of an Authorised Contractual Scheme (ACS) administered by Aviva Investors. The new TTFs are also managed by BlackRock.

During 2018 we made some more changes to the majority of our pension funds investing in BlackRock Aquila funds available on My Money.

The majority of the existing My Money platform funds that had invested in BlackRock Aquila Connect funds are now linked to the Aviva Investors administered TTFs which are managed by BlackRock. The change to the TTFs has reduced the risk to our company, clients and customers.

We have paid the costs of moving to the new structure. As a result of the move of investments out of the Aquila Connect funds the names of the My Money platform funds have changed. We have written to customers to tell them about the fund name changes.

In addition, we have changed the Av BlackRock (Aquila C) Market Advantage Fund FP, which is available on our New Generation Pensions (NGP and NGPe) platforms. This fund no longer invests in the BlackRock Aquila Connect Market Advantage fund, but now invests in BlackRock’s equivalent unit trust fund, the BFM BlackRock Market Advantage Fund. Again, we have paid the costs of moving to the new structure.

BlackRock Aquila questions and answers (including the list of affected funds) - My Money

BlackRock Aquila questions and answers - Market Advantage 

Template letter for trustee use - My Money

Template letter for trustee use - Market Advantage

Letter to be sent to members - My Money

Letter to be sent to members - Market Advantage