Aviva Investors Social Transition Global Equity strategy
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STRATEGY IN BRIEF Aviva Investors Social Transition Global Equity strategy 2021 This document is for professional clients/qualified investors only. It is not to be distributed to, or relied on by retail clients. Please don’t print this document unless you really need to.
Social inequality, a significant challenge Social change driving market opportunities
We live in a profoundly unequal world where large sections of society • Covid-19 has amplified social inequality.
don’t have access to basic human rights. For the lowest paid, work does • Consumer activism is growing on companies whose social footprint is
not provide the dignity it should. not in line with their values.
• Regulators and law makers are examining social inequality.
630 million people We believe companies will be required to take effective action to mitigate their
negative impact on society. Companies across all sectors and geographies will need to
change their business models and practices – we believe companies who are on the
right side of this change will see beneficial performance.
Covid-19 Changing regulatory Active
the inequality virus and legal landscape consumerism
• More than 70% of the global population live in countries where the
wealth gap is growing
• 21% of the global workforce live in either extreme or moderate poverty
• An estimated 40.3 million people are in modern slavery
• 27% of managerial positions in the world are occupied by women
Source: UN (2020) World Social report; ILO (2019) The working poor, Global estimates of modern slavery.
Future alpha generators
We believe beyond the clear moral case, this is unsustainable for companies and will be
a drag on their performance and share prices.
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Investing with purpose Delivering positive
social outcomes
A high conviction global equity strategy with a dual mandate for clients:
• Deliver positive impact on the transition towards a more socially just Underpinned by United Nations
Sustainable Development Goals 5, 8 and
and equitable society and economy
10 our framework for building a more
• Number of stocks: 35-50 socially just and equitable economy
requires three key outcomes:
• Active share: +90%
• Respect human rights
• Investment Manager seeks to outperform the MSCI All Country World
Index by +2% p.a. • Promote decent work
• Responsible corporate behaviour
Long-term capital growth Positive environmental impact
Investment approach
Avoid Avoid companies that are causing significant
significant harm harm to society.
Invest in Companies meeting one of three social needs: Education,
solutions Health & Wellbeing and Financial Inclusion.
Two equally important and aligned objectives
Back Firms managing their social impact and where
transition we can use engagement to drive change.
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Why Aviva Investors Why now?
Covid-19 has put a spotlight on social inequality, which we believe will lead to an
Focus on solutions and transitioning companies to acceleration of regulatory action and increased awareness from consumers when
Transition
maximise impact and improve diversification. purchasing products/services. This will create investment opportunities as markets
start to price in the impact from social and regulatory change.
A change-driven, style agnostic equity investment
Alpha philosophy that generates alpha by identifying Ultimately, we’re running out of time. With our investment choices that can help
opportunities the market has mispriced. shape the future world we have to ask ourselves:
Changing companies and reforming the market through
Impact
active ownership and macro stewardship.
What kind of society do we
want to create and live in?
Influencing change
We do not only invest in these companies – we engage with all our holdings to support
and encourage their commitment towards creating a more socially just economy, for
example by adopting and adhering to human rights due diligence. We go even further
than this to influence positive behaviour across the market by tackling policy reform at
an institutional and governmental level. We plan to provide clients with an annual report
detailing our progress on these initiatives.
We believe that this focus on transition, engagement and market reform is a true
differentiator as we strive to maximise the positive impact of the portfolio.
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Leveraging strong in-house expertise
Social Transition Global Equity strategy team Global Responsible
Investment team
25+ specialists
Equities team
Richard Saldanha Matt Kirby Vaidehee Sachdev 20+ investment professionals
Lead Portfolio Manager Co Portfolio Manager Lead impact analyst
Team information as of 15 October 2021.
15+ years’ experience in asset 5+ years’ experience in asset 8+ years’ experience in advocating
management management for human rights
Richard joined Aviva Investors in Prior to joining Aviva Investors, Vaidehee is the Social Pillar Lead in the
2006 and has been managing income Matt worked as an analyst for the Sustainable Outcomes team. Vaidehee
mandates across a range of global University of Tulsa’s US$4m Student began her career in 2013 and has
portfolios since 2009. Before joining Investment Fund. focused on advocating for the human
Aviva Investors, Richard worked for Matt holds a BA (Hons) in Finance from rights of workers and marginalised
Punter Southall & Co in an actuarial the University of Tulsa. He holds the communities. Most recently at
internship role. Richard holds a Masters Investment Management Certificate ShareAction, she led the development
in Chemistry from the University of (‘IMC’) and has passed the CFA Level I, of the Workforce Disclosure Initiative,
Oxford. He also holds the UKSIP II and III examinations. a corporate reporting framework.
Investment Management Certificate.
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Our ESG heritage 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.
Emerging markets risk
The strategies invest in emerging markets; these markets may be volatile and carry
Catalysed the development of Founding member of the Corporate higher risk than developed markets.
the World Benchmarking Alliance Human Rights Benchmark (CHRB)
Important information
Except where stated as otherwise, the source of all information is Aviva Investors Global Services Limited
(“Aviva Investors”). Unless stated otherwise any views, opinions and future returns expressed are those of
Aviva Investors and based on Aviva Investors internal forecasts. They should not be viewed as indicating any
Rated A+ Rated A ICGN Global Stewardship guarantee of return from an investment managed by Aviva Investors nor as advice of any nature. The value of
by the UN PRI in 2020 by ShareAction in 2020 Disclosure Award 2019 an investment and any income from it may go down as well as up and the investor may not get back the original
amount invested. Past performance is not a guide to future returns.
for Strategy & Governance; highest Ranked 2nd for voting on (Asset managers
score every year since inception climate and social issues > $60bn AUM) In Europe this document is issued by Aviva Investors Luxembourg S.A. Registered Office: 2 rue du Fort Bourbon,
1st Floor, 1249 Luxembourg. Supervised by Commission de Surveillance du Secteur Financier. An Aviva company.
In the UK Issued by Aviva Investors Global Services Limited. Registered in England No. 1151805. Registered Office:
Source: Aviva Investors as at 31 December 2020. AUM data as at 30 September 2020. The name “Aviva Investors” as used in this material refers to the global organisation of affiliated
asset management businesses operating under the Aviva Investors name. Rankings are based on the opinions of the agency and not indicative of any one client’s experience. Each St Helens, 1 Undershaft, London EC3P 3DQ. Authorised and regulated by the Financial Conduct Authority.
year, every signatory must tender a submission to the PRI, incorporating a detailed account of the firm’s Responsible Investing activities. In turn, the PRI conducts a detailed
assessment of all submissions, and awards a rating (‘A+’, ‘A’, ‘B’, ‘C’, ‘D’, ‘E’ or ‘F’, in descending order of merit) against various aspects of Responsible Investing activity. ShareAction
Firm Reference No. 119178.
examines 75 of the most influential asset managers worldwide on responsible investment governance, climate change, biodiversity and human rights; each participant was
assigned a rating applicable to their aggregated score, from AAA through E grade. The ICGN award recognised Aviva Investors’ stewardship reporting in the category of asset In Switzerland, this document is issued by Aviva Investors Schweiz GmbH.
managers with more than $60bn of AUM. Asset owners and managers who are ICGN members are automatically eligible for the awards. Please see Important Information for
additional disclosures. 223024 18/11/2022
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