Aviva Investors has expanded its multi-asset offering with the launch of five risk-weighted, "ESG-optimised" funds managed by Guillaume Paillat and Sotirios Nakos.
The launch of the MAF Core range will see Aviva's existing £3bn AUM multi-asset range rebranded to MAF Plus, with the new funds charging a fixed ongoing charges figure of 0.15%.
Investing globally in a selection of asset classes, the MAF Core range relies on more index investments than the MAF Plus range but maintains "a degree of active asset allocation and security selection", Aviva said.
The MAF Core range will use passive ESG-optimised strategies, which utilise Aviva Investors' proprietary ESG scoring system, while MAF Plus has access to active ESG-integrated funds and thematic impact funds that look to address climate change.
Both the MAF Core and MAF Plus ranges will see the addition of a performance benchmark, which will be a simple combination of global equities and bonds, weighted to the match the risk profile of each fund, as a well as a performance target.
For MAF Plus, the performance target will be 1.3% per annum on average versus the performance benchmark, while MAF Core will target 0.3% versus benchmark.
MAF Core will also have a longer-term strategic management style, which will include annual and quarterly asset allocation reviews. MAF Plus will have a tactical focus with day-to-day active asset allocation.
Paillat and Nakos will report to head of multi-asset funds Sunil Krishnan, and will be supported by the wider multi-asset team of 55 investment professionals.
Krishnan said: "Investors today are clearer than ever that they want to invest with ESG principles in mind, but it has not always been possible to invest sustainably while keeping costs down.
"We set ourselves the challenge of creating a multi-asset proposition that allows investors to do both and we believe that the new MAF Core range achieves just that.
"In addition, by adding both a performance benchmark and performance target, for both MAF Core and Plus, we can show investors exactly what they're getting for their money."