Recently, some of Aviva Investors' most innovative work has been in alternative income, where it originates and manages private assets that meet the specific requirements of its clients.
The structured finance team at Aviva Investors has been originating assets since 2012. The team has £3.1bn ($4bn) of assets under management as at September 2018 and has successfully completed 40 transactions in the last six years.
These deals require extensive cross-team collaboration and careful structuring. The outcome has been the successful capture of illiquidity premia for its clients.
This year, Aviva Investors has identified opportunities in areas once dominated by banks. These include offering term financing to vehicles holding senior debt, with similar security to the senior tranche of a collateralised loan obligation in a more bespoke transaction.
Aviva Investors has also financed short-term receivables, structuring the facility to be eligible for the Solvency II matching adjustment, and restructured derivatives in swap repacks, helping enhance risk-adjusted returns for insurers.
Judges praised the innovative approach of the firm to bring opportunities in new asset classes to clients. This is particularly welcomed as non-traditional asset classes are of increasing importance to insurers.
Judges also commended Aviva Investors for addressing matching adjustment eligibility issues and enhanced risk adjusted returns. They were convinced by Aviva Investors' demonstration of its ability to help insurers in their most critical gap: finding good assets that meet regulatory criteria at attractive pricing levels.