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.
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.
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
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Sustainability review 2025
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Clarity and resilience: New guidance for European Money Market Funds
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Bond Voyage: Oil shocks without the drama
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The reaction to the latest oil price shock provides further evidence that those countries which have taken steps to strengthen their financial position are being rewarded by bond investors.
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Bond Voyage: Dancing to a new tune: How Japan’s Lifers are adapting to a market in flux
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Japan’s bond markets enter 2026 transformed and recent structural shifts have changed the behaviour of the country’s powerful life insurers.
House view
House View
Market insights, economic analysis and investment perspectives to help investors understand the trends, risks and opportunities shaping global markets.
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.
Explore
Fixed income
Fixed income is an indispensable building block for meeting a variety of investment goals, including income, inflation protection, liability management and capital appreciation.