Aviva Investors brings you the latest insights on how private markets investing can drive help the climate transition
Propelling the climate transition
Infrastructure investors could soon play a major role in the delivery necessary for economic growth and the pathway to net zero
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The UK has been encouraging greater investment by defined contribution schemes in private assets. Mark Meiklejon discusses what DC schemes need to know about Long-Term Asset Funds.
What DC schemes need to know about LTAFs
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The coming years could see new opportunities for the UK government and the private sector to work together on infrastructure projects, but what obstacles need to be overcome? asks Darryl Murphy.
Is the next decade poised to be a golden age in UK infrastructure?
Global warming is one of the greatest challenges we must collectively face.
The scale and urgency of change needed to ensure global greenhouse gas emissions are aligned with the Paris Agreement will impact every part of the global economy. By implementing a climate transition-aligned strategy, investors in buildings and infrastructure can make a tangible difference to emissions pathways while also identifying opportunities to generate long-term risk-adjusted returns. For defined-contribution pension schemes, the time to invest could be now. DC schemes have generally been underrepresented in private assets, thereby missing out on the potential for diversification benefits and attractive, long-term risk-adjusted returns. The case for climate-aligned real assets is potentially compelling, because it offers a way for investors to play a crucial role helping propel the transition to a low-carbon economy.
Daniel McHugh Chief Investment Officer, Aviva Investors
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Key risks
Luke Layfield and Zoe Austin explain four key pillars that can help real asset investors align their strategies with the climate transition and help uncover potential opportunities to deliver attractive returns.
Avoid, reduce, remove, align
By investing in climate-aligned real assets, defined-contribution pension schemes can help propel the transition while also potentially benefitting from portfolio diversification and attractive risk-adjusted returns, says Mark Meiklejon.
Building better: Opportunities for DC schemes to invest in the climate transition through real assets
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. Real estate/infrastructure risks Investments can be made in real estate, infrastructure and illiquid assets. Investors may not be able to switch or cash in an investment when they want to because real estate may not always be readily saleable. If this is the case we may defer a request to switch or cash in shares or units. Investors should also bear in mind that the valuation of real estate is generally a matter of valuers’ opinion rather than fact. Sustainable investing risk The level of sustainability risk to which the strategy is exposed, and therefore the value of its investments, may fluctuate depending on the investment opportunities identified by the Investment Manager.
Information contained herein has been obtained from sources believed to be reliable, but has not been independently verified by Aviva Investors and is not guaranteed to be accurate. Past performance is not a guide to the future. The value of 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. Nothing in this material, including any references to specific securities, assets classes and financial markets is intended to or should be construed as advice or recommendations of any nature. Some data shown are hypothetical or projected and may not come to pass as stated due to changes in market conditions and are not guarantees of future outcomes. This material is not a recommendation to sell or purchase any investment. The information contained herein is for general guidance only. It is the responsibility of any person or persons in possession of this information to inform themselves of, and to observe, all applicable laws and regulations of any relevant jurisdiction. The information contained herein does not constitute an offer or solicitation to any person in any jurisdiction in which such offer or solicitation is not authorised or to any person to whom it would be unlawful to make such offer or solicitation. In the UK Issued by Aviva Investors Global Services Limited. Registered in England No. 1151805. Registered Office: 80 Fenchurch Street, London EC3M 4AE. Authorised and regulated by the Financial Conduct Authority. Firm Reference No. 119178. 590979 – 31/12/2024
THIS IS A MARKETING COMMUNICATION Except where stated as otherwise, the source of all information is Aviva Investors Global Services Limited (AIGSL). Unless stated otherwise any views and opinions are those of Aviva Investors. They should not be viewed as indicating any guarantee of return from an investment managed by Aviva Investors nor as advice of any nature.
Important Information
Explore one of our real asset investments, Curtain House, a Victorian warehouse we are converting into a modern, environmentally friendly office building.
Curtain House: Case study
THIS IS A MARKETING COMMUNICATION Except where stated as otherwise, the source of all information is Aviva Investors Global Services Limited (AIGSL). Unless stated otherwise any views and opinions are those of Aviva Investors. They should not be viewed as indicating any guarantee of return from an investment managed by Aviva Investors nor as advice of any nature. Information contained herein has been obtained from sources believed to be reliable, but has not been independently verified by Aviva Investors and is not guaranteed to be accurate. Past performance is not a guide to the future. The value of 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. Nothing in this material, including any references to specific securities, assets classes and financial markets is intended to or should be construed as advice or recommendations of any nature. Some data shown are hypothetical or projected and may not come to pass as stated due to changes in market conditions and are not guarantees of future outcomes. This material is not a recommendation to sell or purchase any investment. The information contained herein is for general guidance only. It is the responsibility of any person or persons in possession of this information to inform themselves of, and to observe, all applicable laws and regulations of any relevant jurisdiction. The information contained herein does not constitute an offer or solicitation to any person in any jurisdiction in which such offer or solicitation is not authorised or to any person to whom it would be unlawful to make such offer or solicitation. In the UK Issued by Aviva Investors Global Services Limited. Registered in England No. 1151805. Registered Office: 80 Fenchurch Street, London EC3M 4AE. Authorised and regulated by the Financial Conduct Authority. Firm Reference No. 119178. 590979 – 31/12/2024
Climate change is humanity’s most daunting challenge. As global temperatures climb, the urgency of aligning greenhouse-gas emissions with Paris Agreement intensifies. Real asset investors can play a role in this process. Buildings and infrastructure networks are major contributors to carbon emissions. Currently, 38 per cent of global energy-related greenhouse-gas emissions are attributable to buildings and construction and 85 per cent of today’s buildings will still be in use by 2050. This highlights the need to decarbonise the built environment, to minimise the emissions real estate produces and improve the energy efficiency of buildings.
In this article, Luke Layfield and Zoe Austin explain four key pillars that can help real asset investors align their strategies with the climate transition and help uncover potential opportunities to deliver attractive returns.
GHG emissions attributed to the built environment
Our strategy focuses on preventing emissions from occurring in the first place through three themes.
Avoid
Three investment themes for avoiding emissions
This part of our approach refers to actions that can be taken to decrease GHG emissions where avoidance is not possible. This aspect is crucial because, while not eliminating emissions entirely, it can “buy time” to enable the development of more sustainable solutions. We employ a “brown-to-green” strategy: this means we aim to upgrade buildings to make them more energy-efficient. There are climate benefits of refurbishing a building. Rather than razing the existing structure and building from scratch, the embodied carbon that is saved and retained by greening an existing brown building rather than tearing it down to build something new.
Reduce
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By implementing a climate transition-aligned strategy, investors in buildings and infrastructure can make a tangible difference to emissions pathways while also identifying opportunities to generate long-term risk-adjusted returns. Our Climate Transition Real Assets strategy adopts an approach based on four categories: we seek to avoid emissions, reduce emissions and remove emissions from the atmosphere, as well as align our portfolio to the broader climate transition through investments in cutting-edge technologies.
Energy transition
Decarbonisation of transport
Digital infrastructure
Source: Aviva Investors, May 2004
The first is the energy transition. The key area of interest here is renewable-energy projects. We are exploring sectors such as battery storage, which can help address the problem of “intermittency”: the fact solar and wind power can only be generated when the sun is shining and the wind is blowing makes it vital to store the energy generated at those times. The second is the decarbonisation of transport. Transport-related carbon emissions, particularly from road vehicles, are a major contributor to climate change. Through investments in EV-charging point operators, we aim to contribute to the transition away from internal-combustion-engine vehicles and enable the roll-out of EVs. The third relates to digital infrastructure and other sectors that enable the transition to a low-carbon economy, supporting the data needs of smart cities and buildings, including data centres and telecom towers.
Removing CO2, through methods like afforestation and carbon capture, is important because it addresses the accumulated GHG emissions already in the atmosphere. After all, even if all new emissions were stopped today, the existing concentration of CO2 would continue to impact the climate system. Investors can choose to offset emissions indirectly, by buying carbon removal credits. But real asset investing also offers another way to offset remaining carbon emissions, through direct investment in nature-based solutions. We invest directly in afforestation and sustainable forestry, based on the planting of diverse native tree species, to remove emissions and generate carbon credits. Sustainable forestry can generate long-term returns, as well as carbon credits that act as a hedge against rising carbon prices.
Remove
Finally, we invest indirectly into private equity solutions to “align” to the climate transition (although this forms a smaller part of our overall allocation than the other categories). This means investing in emerging climate technologies that are being developed to help speed the transition The value of these investments in early-stage companies lies primarily in their ability to diversify our portfolio and provide early insights into potential future investments in infrastructure or real estate; they may also introduce us to new technologies that can help us to decarbonise our existing assets. Another key aspect is the potential for relatively high returns on these investments, although the risk profile is also higher and therefore needs to be carefully considered.
Align
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We employ a “brown-to-green” strategy: this means we aim to upgrade buildings to make them more energy-efficient
Currently, of global energy-related greenhouse gas emissions are attributable to buildings and construction
Further reading
To read more about these four key pillars of decarbonisation, including some projects in London and Scotland that we invest in
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UK regulators and policymakers are increasingly keen to channel private-sector capital into infrastructure and other long-term projects designed to boost economic growth. In this environment, there are opportunities for the trustees of defined-contribution (DC) pension schemes to begin offering their clients access to real assets. Investing directly in real assets has historically been the preserve of large institutional investors, which are typically able to commit large amounts of capital to a single investment. These investors also usually provide patient capital, which means they recognise the illiquidity inherent in the asset class and are accepting of the long-term nature of investments to deliver additional investment returns. Evidence suggests that while the market is still nascent, most DC pension schemes have been underinvested in this area, with default strategies overwhelmingly favouring lower-cost equity and bond funds. There are several arguments for DC schemes to increase allocations to real assets, since they offer many characteristics that set them apart from public-market investments and offer some distinct advantages in a diversified portfolio.
They help diversify members’ exposure to public markets and offer the potential for attractive long-term returns, capturing illiquidity premia. Moreover, in some cases, they offer the only means of gaining pure exposure to sectors such as life sciences, renewable energy, and social housing, areas with strong growth potential that enable members to feel more connected to their capital. By investing in real assets, DC schemes can also play their part in helping accelerate the transition to a carbon-neutral economy, and not just by investing in renewables, but via other investments too, notably real estate and direct natural capital investments. After all, the built environment is a major contributor to climate change, with around 37 per cent of global carbon emissions associated with the construction and maintenance of buildings.
Inefficient, carbon-intensive assets are likely to be affected by new green regulations and shifting demand patterns over the coming years. They may also be vulnerable to the physical risks of climate change, from extreme heat to floods and wildfires. Aviva Investors’ Climate Transition Real Assets strategy aims to mitigate specific risks and take advantage of the opportunities associated with the climate transition while also realising key financial outcomes for clients in the form of diversification, illiquidity premia and uncorrelated returns. We can do this by proactively decarbonising existing assets; acquiring and developing new, climate-friendly real estate; developing new infrastructure assets, including socially beneficial assets like fibre broadband and electric vehicle (EV) charging networks; and by identifying opportunities to capture carbon via nature-based solutions.
DC schemes can play their part in helping accelerate the transition to a carbon-neutral economy
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Download “Building better: Opportunities for DC schemes to invest in the climate transition through real assets” to understand:
Some of the main benefits real assets have to offer defined contribution pension schemes. The limitations of strategies focused solely on public markets. The role real asset investments have to play in helping tackle climate change.
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Source: 2021 global status report for buildings and construction
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"Prowlers and idlers, costermongers, petty tradesmen, small clerks, milliners, stay-makers, shoe-binders, slop-workers, poor workers in a hundred highways and by-ways…" This is how Charles Dickens described the residents of Shoreditch, east London, in the nineteenth century. The area has changed a lot since then. Nowadays, you are more likely to run into cortado-sipping creatives than stay-makers. At the heart of Shoreditch stands Curtain House, a splendid reminder of the Victorian era. Today, it is undergoing a transformation of its own.
Our objective with Curtain House is to turn this “brown” building “green”; we are targeting an upgrade of its Energy Performance Certificate rating from E (the lowest legal rating for a building let to tenants) to A. To achieve this, we are replacing the gas heating system with electric heat pumps and ensuring the building has the potential to be naturally ventilated through openable windows – reducing the need for air conditioning and mechanical ventilation systems – as well as retrofitting insulation and upgrading the windows. Solar panels will be installed on the roof and storage for rainwater harvesting provided in the basement.
A key climate benefit of the project is all the ‘embodied carbon’ that is saved and retained by ‘greening’ the existing building rather than tearing it down to build something new, which would be very carbon intensive in terms of materials and labour. All told, our work on Curtain House should save around 3,000 tonnes of CO2 compared with a new build
Source: Mark Meiklejon, “Building better: Opportunities for DC schemes to invest in the climate transition through real assets”, Aviva Investors, March 22, 2024.
Curtain House was first converted into offices in the second half of the 20th century; but it remained a tired and draughty place. Hampered by poor insulation, poorly maintained single-glazed windows and a reliance on gas central heating, it was inefficient and costly for occupiers to run. In 2021, we bought the building, aiming to refurbish and develop it into best-in-class office space. This was the first investment made by our Climate Transition Real Assets strategy, which seeks to deliver attractive financial returns by investing in a way that is aligned with the climate transition. The strategy seeks to avoid carbon emissions through investments in renewables and other green infrastructure; reduce emissions through efforts to decarbonise real estate assets, and remove emissions through financing nature-based solutions, such as sustainable forestry projects; as well as to align our portfolio to the broader climate transition through investments in cutting-edge technologies.
From brown to green
Curtain House interior before and after (planned)
Delivering environmental improvements goes hand-in-hand with financial returns. There is increasing appetite among occupiers for energy-efficient office buildings, both because they are cheaper to run and because they help tenants deliver on their own net-zero commitments. Green, efficient office space is not widely available in east London, however. Land is scarce and heritage constraints mean it is difficult to raze existing buildings to make way for new developments. With companies increasingly keen to rent near Tech City – the area around Old Street station that hosts a growing cluster of cutting-edge technology firms – there is a supply/demand imbalance for the best offices. We expect this dynamic to drive significant rental growth at Curtain House. The project involves the creation of large, open floorplates, which are desirable for modern companies but difficult to find in the existing east London office stock. Other amenities, such as a new roof garden for tenants, should act as a further draw.
Commercial potential
The Tech City submarket in London is positioned to perform strongly over the long term due to its ability to attract and nurture talent. Curtain House represents an opportunity to convert an iconic-yet-substandard asset into a sustainable landmark
As well as the environmental and commercial dimensions of their work, investors in real assets should also take social impact into account. Real estate developments can provide social benefits. A needs assessment for the project highlighted a lack of job opportunities in the area, so we will be requiring our appointed main contractor to commit to employing local sub-contractors and apprentices where possible, creating jobs for local people. We also partnered with The Land Collective (TLC), a London-based education charity looking for support for their careers programme titled ‘Black Girls in Property’, to deliver a site visit for local students.
Community impact
Recognising the students’ interest in architecture, the architect worked with us to organise an exhibition of the site’s computer-generated imagery (CGI), career talks from project team members and a site tour. A half-day workshop education outreach activity was delivered, engaging 15 students with the support of eight volunteers. The needs assessment also pointed to a lack of green space in Shoreditch, so we are looking into how the roof terrace can be made available to local community groups that have an interest in gardening. The new space will include productive gardens, comprising varied planting and nectar-rich flowers.
By accessing real assets, clients can take advantage of opportunities for long-term income and capital growth through the transition, while simultaneously future-proofing their portfolios and contributing to decarbonisation efforts.
Building better
Curtain House interior
Curtain House: Facts and figures
Curtain House plan
40
,000 sq.ft
c.
Lettable area
of office space
Carbon saving
in construction-materials impact compared to a new build
3
,000 tCO
2
Embodied carbon
equivalent to a LETI A+ rating
215
kgCO /m
Expected Energy Use Intensity (EUI)
EUI of typical UK office: 234kWh/m2
127
kWh/m
Luke Layfield, Head of Portfolio Management, Private Markets
George Fraser-Harding, Head of Pan-European Funds, Real Estate
We focus on assets and sectors with solid fundamentals and clear net-zero alignment, and Curtain House is a great example. Climate is increasingly central to fundamentals, which will drive demand and support value in the medium to long term. And through investing in real estate in a climate transition-aligned manner, we can provide tangible environmental and social benefits
Zoe Austin, Portfolio manager
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The new UK government has declared a ‘national mission’ to lift economic growth, making it clear that boosting infrastructure spending will be a central plank of those efforts. It also has an ambition to make Britain a ‘clean energy superpower’. However, lifting levels of investment will not be straightforward because UK investment as a share of economic output has historically lagged behind that recorded by other leading economies.
Meeting the objectives of net zero will not happen by accident and will take the largest capital investment programme we are likely to witness in our lifetime
Figure 1: UK public and private sector investment, 1980-2024
Complicating the UK government’s task, national debt stands at 98 per cent of GDP and more than £100 billion a year is being spent on servicing that debt. With little scope for new borrowing, the government plans to boost investment through forging new partnerships with the private sector. This means infrastructure investors could soon be able to play a major role in the infrastructure delivery necessary for economic growth and the pathway to net zero. There is no shortage of private capital waiting to be unlocked. But for that to happen, a number of obstacles will have to be overcome.
In July, Aviva Investors published its policy roadmap: Boosting Low Carbon Investment in the UK, which set out our view on the long-term measures that are necessary to enable investors to deliver their share of the capital investment required to reach net zero. In infrastructure, there are some areas that need immediate attention. The National Infrastructure Commission, emphasised delivery of green energy projects had to be sped up if the government was to reach its net-zero ambitions.
Partnering up
Government, industry and investors need to change gear if we are to meet the goal to decarbonise the energy system faster and boost economic growth in the process. Meeting the objectives of net zero will not happen by accident and will take the largest capital investment programme we are likely to witness in our lifetime. The government wants the £7.3 billion National Wealth Fund to become the main vehicle for public investment in infrastructure with an initial focus on the development of ports, green hydrogen, green steel, industrial clusters and the automotive industry. The aim is to reduce the investment risk for private funding or institutional capital. The target is to attract £3 of private cash for every £1 of public funding.
Shifting gear
To deliver the objective of clean power by 2030, the government is also aiming to double onshore wind output, treble solar power and quadruple offshore wind output. There is no shortage of private capital for these tried-and-trusted technologies, but investors need to see significant investment into supply chains and supporting electricity transmission infrastructure. As for nuclear energy, the new government’s attitude is positive. We expect the Sizewell C plant to be built, along with progress on a longer-term plan to deliver Small Modular Reactors (SMRs). The latter technology remains at a relatively early stage of development so will need early-stage development capital from industry and possibly the public sector.
Contracts for Difference
Whilst there has been a recent slowdown in the adoption of electric vehicles (EVs), it is only a matter of time until the pace picks up again. However, the charging-point network will need to grow at a faster rate to support the expansion of the sector. EV charging needs to be based on the long-term goal of creating a large network available to all consumers, at home, at the workplace or on the road network. It may be more efficient to consider how concession options could lead to a more efficient outcome which could more easily support longer-term financing models. Rail is another sector that could be of interest to investors. The government is setting up Great British Railways, a state-owned company, to try to consolidate what is a fragmented sector, and to align rail infrastructure and operating services. It is worth noting that at present rolling stock is the only part of the industry making use of private capital. It appears the model of privately owned rolling stock will not be affected by the creation of the new entity, but investors are keen to see how private capital could be used to improve rail infrastructure for the good of taxpayers and the customer. The challenges set out above will not all be addressed overnight, but investors are hoping the new government’s growth and net-zero objectives could lead to a step-change in the delivery of new infrastructure projects. If it succeeds in unlocking the opportunities for new investment and partnerships, we might be able to look back in a decade’s time and label this moment as the start of a golden age for UK infrastructure.
Transport and social infrastructure
Whilst there has been a recent slowdown in the adoption of electric vehicles, it is only a matter of time until the pace picks up again
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The UK has been making concerted efforts to encourage greater investment by defined contribution (DC) and local government pension schemes in private (unlisted) assets. The idea is that making higher allocations to less-liquid asset classes might bring higher risk-adjusted returns over the long term, allowing savers to grow their pension pots, as well as creating broader economic and social gains. Encouraging financing into infrastructure, real estate, private equity, private debt and venture capital (VC) offers the attractive prospect of fuelling growth and driving innovation, as well as speeding the capital-heavy investment needed to decarbonise the economy. The tangible, often localised benefits of these investments can also help members feel more engaged with their schemes and connected to their capital.
Long-term Asset Funds (LTAFs) are open-ended, authorised Alternative Investment Funds regulated by the UK’s Financial Conduct Authority. They are designed to provide institutional and sophisticated professional wealth investors access to long-term and less liquid assets within clearly defined rules and guidelines.
What are LTAFs and why are they needed?
Figure 1: LTAFs: A new regulatory regime shaping the future of access to private markets in the UK
In addition to institutional investors, DC pension schemes, government pension schemes and larger charities could all potentially benefit from exploring LTAFs within a carefully managed risk and liquidity context. Broad access to LTAFs also allows high-net worth and more sophisticated wealth investors to invest up to a ten per cent cap, if appropriate for them. Access to different types of assets, with characteristics that might be unique or hard to replicate, in opportunity sets which are less heavily researched than those in public markets, can all be important differentiators.
Who might benefit from LTAFs?
But there are obvious challenges that come with investing in assets like land, energy and communications infrastructure, commercial buildings, social infrastructure, housing and intellectual property. Bringing such projects to fruition is not a short-term business, and there are many operational hurdles to address. They include the practicalities of investing in higher-risk and less-liquid asset classes, how much participation will cost and whether investor protections will ultimately stand the test of time.
Enabling access
Portfolio composition
Economic and societal impact
Source: Aviva Investors, September 2024.
In periods of market stress, if many investors try to exit together, managers may be forced into “fire sales” of the most liquid assets, potentially to the detriment of both the investors that wish to stay and the wider market. The features of LTAFs were designed in response to market events which can trigger liquidity mismatches in funds with daily dealing, which have the potential to create systemic risk. The broad aim is to promote a long investment horizon and prevent managers needing to sell assets in haste in down markets, to the detriment of investors, as well as to try to manage the risk of fund suspensions better. Nevertheless, it is of course impossible to anticipate the risk of suspensions in all future scenarios, and it is therefore important for investors to be comfortable with the inherent illiquidity of some unlisted assets, and structure their holdings appropriately. The characteristics of LTAFs differentiate them from previous fund structures. Traditionally, outside large, sophisticated institutions, UK investors have typically invested in illiquid, long-term assets via closed-ended structures like limited partnerships, VC trusts and investment trusts. Having an FCA-authorised structure through which managers can invest in long-term assets is intended to give investors more choice, widening the options available to them.
The key is how the features come together to offer different drivers of returns and potentially generate better outcomes for savers. Appreciating the subtle but important differences can be diversification- and return-enhancing. These features are highly relevant for DC schemes with long-term liabilities. Private market assets could prove a natural fit and help address concerns about the financial constraints faced by large segments of the working population when they retire. Longer life expectancy could mean greater reliance on the state pension and other state benefits, and/or other savings in later life. Awareness of this challenge is driving the reform agenda and wider conversations on retirement planning.
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The features of LTAFs were designed in response to market events which can trigger liquidity mismatches in funds with daily dealing
Find out more on how adding private markets allocations might be of benefit to DC schemes
Enabling access to long-term private asset classes for "patient capital"
Liquidity of underlying assets is aligned with that of the fund, materially fewer restrictions than prior regimes enabling dynamic portfolio composition
Supported by the UK government, regulator and investment community with ambition to deliver long-term, positive economic and societal impact
LTAFs are flexible, dynamic structures, but each fund must have at least 50 per cent of its portfolio invested in illiquid, long-term assets. Investments in unlisted and listed illiquid securities are permitted, as are investments in other regulated and unregulated pooled schemes. Most significantly, there is no daily dealing. Managers align the ability to trade in and out of the fund with the liquidity of the underlying assets: the asset mix should influence the actions investors are ultimately able to take. The baseline is that redemptions cannot be made more than monthly, and the notice period for exits must be at least 90 days and may be longer if appropriate.
How LTAFs differ from other UK-regulated funds
Figure 2: How LTAFs seek to align redemption terms with the liquidity of the underlying assets
Redemption frequency
Notice period
Liquidity management
No more than monthly
Minimum 90-day notice period, longer if appropriate
Portfolio must deliver “natural liquidity” to meet redemption requests (yield or distributions should match the expected level of redemptions in a steady market). Liquidity management tools, including minimum holding periods, extended notice periods, limits on the number of units that that can be redeemed at one time and gates blocking aggregate redemptions for all investors may be used.
