Aviva Investors head of EMEA wealth Smera Ashraf on three pillars of asset management, supporting the client experience and owning a car that still ‘expects you to participate’
Where – and why – are you anticipating demand or fund-flows from UK-based wealth managers and their clients over the next 12 months?
We expect to see continued interest in multi-asset solutions that support specific client outcomes as well as in core single asset class building blocks that provide resilience while also supporting growth in client portfolios.
There are two key themes here. First, for those clients seeking an outsourced diversified solution, there is a need to provide strong risk-adjusted multi-asset growth portfolios. These provide a consistent relationship across the risk and return scale – portfolios that will demonstrate resilience and protect returns in volatility as well as retirement income solutions designed specifically for clients in decumulation.
Second, in the recent macro environment where markets have been volatile, active management has been even more important as clients seek uncorrelated assets. This has seen investors increasingly shift into private market allocations, as well as looking across the fixed income curve where active management is needed to provide diversification and resilience.
How are you planning to address and serve that interest?
First, through product innovation – by expanding access in various asset classes to provide greater choice for clients. This includes fixed income, where Aviva Investors has a strong, £100bn fixed income franchise and can support product launches in strategies such as Return Plus, and with asset-backed securities where we have strong expertise and heritage but have only delivered it to institutional audiences. Additionally, in private markets through semi-liquid structures and feeder solutions tailored for wealth managers where Aviva Investors has a long heritage for providing core solutions to defined contribution (DC) and institutional insurance clients.
And then also through client engagement – by providing education and transparency around complex strategies, supported by digital tools and portfolio analytics. We are also investing in building distribution and ensuring local presence to support client experience.
Are you seeing a divergence in the demands of UK wealth managers versus, for example, their peers in Europe or on the institutional side in the UK?
There has been expansion in UK wealth for several years and we have seen many companies expanding their group strategy by building vertically integrated wealth businesses – however, it is more nuanced than a simple geographic split.
In the UK wealth space, demand is increasingly shaped by a complex regulatory environment and changes in legislation. Therefore, we are seeing more outcome-oriented solutions such as retirement income, which in many cases will be bespoke by its nature. Tax-efficient and intergenerational wealth transfer is key – especially with recent changes to IHT legislation.
The drive for low-cost investing following the Retail Distribution Review remains a key driver of much product innovation. The regulatory requirements of Consumer Duty is also putting pressure on wealth businesses. In contrast, while many European wealth managers face similar client expectations, the distribution and regulatory framework is different. As a result, we see more focus on distribution efficiency with few larger players controlling more wealth businesses.
What is interesting is that wealth managers in the UK are increasingly borrowing institutional thinking – particularly around portfolio construction, risk budgeting and alternatives – but adapting it for individual client outcomes.
So while there is a divergence, we are also seeing a gradual convergence in investment sophistication, with UK wealth managers sitting somewhere between traditional private banking and institutional asset management in terms of expectations.
As a business, how do you define ‘alternative’ and ‘private’ assets and to what extent should asset managers be looking to service investor demand here?
For us, ‘alternatives’ and ‘private assets’ are defined less by labels and more by their role in portfolios. We have a clear understanding on which asset classes offer differentiated sources of return and risk diversification beyond traditional equities and bonds.
This is one of the most strategically important areas for Aviva Investors. As an asset manager with a long heritage in private markets, we have been at the forefront of developing this capability in a way that works for a broader investor base.
We played a leading role in shaping the LTAF regulatory framework, bringing institutional‑quality private market exposure into more appropriate and accessible fund structures. Today, we have the largest number of LTAFs in the UK market, which are particularly designed to support DC and long‑term savings outcomes.
Alongside this, we have a long history of managing liquid alternative strategies and, critically, a deep understanding of how private markets can enhance a portfolio’s risk‑adjusted return profile, improve diversification and support long‑term client objectives.
As a result, we are having a growing number of conversations with UK wealth managers who are actively thinking about how to incorporate private market assets into client portfolios in a responsible and well‑governed way – balancing liquidity needs, suitability and client understanding.
More broadly, I believe asset managers should be very clear and honest about where they have genuine expertise. For Aviva Investors, private markets is one of those areas. Supporting clients does not just mean providing the assets themselves, but also helping to develop knowledge, confidence and understanding of private market investing – so that these allocations are used thoughtfully and appropriately within client portfolios.
‘ESG is dead – long live ESG 2.0’ – your thoughts as a distributor, please?
I would strongly disagree with that. ESG is not dead – it has evolved and, in many respects, it has become more embedded and more meaningful. Today, ESG is widely understood as the integration of material ESG factors into investment decision‑making as a core risk management tool. We are proud to be recognised as a leader in this area and to have been recognised in leading industry awards in this field over the last year .
What is often confused is ESG integration versus the broader sustainability agenda, which can include dedicated sustainable outcome strategies, portfolio transition solutions and active stewardship – all areas where we have deep expertise and strong credentials.
Client demand has not disappeared but it has grown more nuanced, depending on markets and clients. In some markets, such as Europe and among pension clients, it remains strong. As distributors, our role is to support clients based on their needs – and that means being transparent, clear and focused on education.
What drives your approach to client communication? And is there a case for focusing on attracting the ‘right’ type of client?
Our approach to client communication is fundamentally relationship-led. We believe strong, trusted relationships come from having a genuine local presence and teams who understand their clients’ businesses, regulatory environments and end-investor needs. That proximity allows us to listen more closely and communicate in a way that is relevant, timely and practical.
There is also a strong case for focusing on the ‘right’ type of client. We are not trying to be everything to everyone. We are most effective when we work with clients where our expertise is a match for their needs. We value long-term partnership, transparency and depth of expertise – where we can collaborate rather than simply transact.
A key part of this is going beyond delivering investment products. Increasingly, clients are looking for support that helps them run better businesses and have better informed conversations with their own end-clients. That is why we focus on building solutions around their needs – whether that is investment insights, podcasts, explainers, market education or thought leadership.
Outside of work, what is the strangest thing you have ever seen or done?
I still own a VW Golf Mark 2 Cabriolet – no power steering, manual choke and carburettor, cassette player, zero electric features. Now, I don’t think any of that is strange – it is just a car that expects you to participate. Apparently that is now considered strange, though, and I have come across people of driving age who have no idea what any of this means – and they do look at me strangely!
May we have two book recommendations, please – ideally, one with an investment connection?
I have a wide family and community that still do not understand investing so my ‘go to’ book is always to signpost The Psychology of Money by Morgan Housel. It is extremely popular, easy to reference and very client‑relevant – focusing on behaviour, risk and decision‑making rather than technical markets. Outside of investments, one of my mentors gave me Drive by Daniel H Pink to read. I have not finished it yet but I think it is a great one to help self-reflection and to help me develop.
Gazing into your crystal ball, what does the asset management sector look like 10 years from now?
There are tree key pillars – being client-led, outcome-focused and specialised. We are going through self-reflection and will need to demonstrate who we are.
“We are not trying to be everything to everyone. We are most effective when we work with clients where our expertise is a match for their needs.
