Our approach

We are long-term, fundamentally driven investors seeking to capitalise on inefficiencies in the global high yield market. We aim to outperform the market through the cycle with less risk.

Holistic global portfolios

Our global high yield portfolios are constructed free from regional sleeves, giving our team more scope to generate alpha as well as opportunities for arbitrage from multi-currency issuers.

Integrated ESG

The high yield market is inefficient in identifying and pricing environmental, social and governance (ESG) risk, partly due to a lack of transparency and companies being on different journeys. Our portfolios benefit from in-depth research with full consideration of ESG risk factors.*

Higher quality

We believe over the long term, higher-rated high-yield names outperform. In pursuit of superior risk-adjusted returns, we focus on higher-rated credits, with a tactical allocation to lower-quality names when appropriate.

*Beyond any binding ESG constraints in the strategy and baseline exclusions policy, the investment manager retains discretion over final investment decisions, taking into account wider risk factors.

Potential benefits

Offering diversification and attractive income potential, high yield bonds can play an important role in a balanced portfolio.

Diversification

Given their low to moderate correlation with other asset classes, high yield bonds can provide diversification in a balanced portfolio.

Smoother returns

Over the past 25 years, high yield bonds have delivered similar returns to equities, but with almost half the volatility.

Attractive income

High yield bonds have the potential to generate attractive all-in yields, supported by stronger company fundamentals than a decade ago.

Key risks

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 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

The strategies may use derivatives; these can be complex and highly volatile. Derivatives may not perform as expected, which means the strategies may suffer significant losses.

Investor in funds

The strategies may invest in other strategies; this means the overall strategy charges may be higher.

Illiquid securities risk

Certain assets held in the strategies could, by nature, be hard to value or to sell at a desired time or at a price considered to be fair (especially in large quantities), and as a result their prices could be very volatile.

High yield investment strategies

Aviva Investors Global High Yield Bond Strategy

This strategy aims to maximise total returns and generate income. We have a strong emphasis on limiting drawdowns by investing in a high conviction, diversified portfolio of global high yield bonds.

Aviva Investors Short Duration Global High Yield Bond Strategy

This strategy follows a similar approach to its Global High Yield cousin but focuses on bonds with a maturity of five years or less and duration of three years or less.

Our high yield investment team

Investment professionals named may be employees of Aviva Investors Canada Inc. or one of its global affiliates including Aviva Investors America LLC (USA) or Aviva Investors Global Services Limited (UK).

Need more information?

For further information, please contact our investment sales team.

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