Unlocking diverse return opportunities across global sovereign bonds

Aviva Investors manages £11.4 billion of global sovereign bonds (as of 31 December 2025) across a range of pooled fund solutions and segregated mandates. We are bottom-up, value-seeking investors, and employ a disciplined and repeatable process to capture the full spectrum of return drivers across the sovereign universe.

The Aviva Investors Global Sovereign Bond strategy is a core capability with a track record of over 15 years. The strategy is actively managed, allowing us to adjust portfolios to capitalise on market opportunities and protect capital against downside risks.

Why invest?

An allocation to global sovereign bonds can enhance portfolio diversification and provide attractive levels of income across different economic and interest‑rate environments, while offering safe-haven characteristics in periods of market stress.

Our approach aims to deliver: 

Diversified return sources

Our globally connected approach allows us to uncover opportunities across the full sovereign bond universe. We recognise that global supply-chain shocks and geopolitical tensions can impact all economies, albeit to different degrees.

Strong risk-adjusted returns

Seeking to outperform the benchmark over time without taking large, directional risk bets in portfolio construction. More risk does not always equal more returns.

Performance across market cycles

Global sovereign markets can shift quickly in response to changing rate cycles, geopolitical shocks and fiscal dynamics. Our approach anchors portfolios in resilient, high-conviction positions, focusing on the quality and durability of income.

Investment philosophy

Traditional benchmarks can constrain investor decision‑making. By investing across a broader opportunity set, we aim to find value and enhance return potential.

We seek to capitalise on dislocations caused by global shocks, focusing on long‑term fair value to deliver strong risk‑adjusted returns, not simply reach for yield. 

Broad opportunity set

We use derivatives as well as both inflation-linked and sovereign-backed bonds to capture the full potential of the global sovereign universe.

Disciplined risk framework

Our framework allocates risk with precision through a consistent, repeatable process, sizing positions by volatility and risk contribution, with continuous reassessment as markets evolve.

Robust portfolio construction

Our process is designed to preserve capital and withstand market volatility, enabling us to deliver consistent returns through the cycle.

Latest insights

Bond Voyage: A journey into fixed income

Each month, our freewheeling fixed-income newsletter gathers insights from our high-yield, investment-grade, emerging-market and global sovereign bond teams.

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Bond Voyage

Fixed Income Compass

Each quarter, Compass plots a course through global fixed income markets by distilling top-down macro perspectives and bottom-up market intelligence into a cohesive outlook.

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Investment insights

Investment thinking that brings together the collective insight of Aviva Investors’ teams from across the globe on the key themes influencing markets.

Views

House view

House View

No one can predict the future. But our quarterly House View sets out the collective wisdom of our investment teams on the current state of global markets – and where they might be heading.

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Key risks

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.

Investment risk

The value of an investment and any income from it can go down as well as up. Investors may not get back the original amount invested.

Credit and interest rate risk

Bond values are affected by changes in interest rates and the bond issuer's creditworthiness. Bonds that offer the potential for a higher income typically have a greater risk of default.

Derivatives risk

Investments can be made in derivatives, which can be complex and highly volatile. Derivatives may not perform as expected, meaning significant losses may be incurred.

Investor in funds

Investments can be made in other funds; this could mean the overall charges are higher.

Illiquid securities risk

Some investments could be hard to value or to sell at a desired time, or at a price considered to be fair (especially in large quantities). As a result, their prices can be volatile.

Sustainability risk

The level of sustainability risk may fluctuate depending on which investment opportunities the Investment Manager identifies. This means that the fund is exposed to Sustainability Risk which may impact the value of investments over the long term.

Global sovereign bond fund team

Specialist global sovereign expertise, strengthened by Aviva Investors’ integrated fixed income platform.

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