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).
Brent Finck
Global Co-Head of High Yield
Sunita Kara
Global Co-Head of High Yield
Sau Mui
Senior Portfolio Manager
Pierre Ceyrac
High Yield Portfolio Manager
Need more information?
For further information, please contact our investment sales team.
Explore our fixed income range
Fixed income views
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Bond Voyage: A journey into fixed income
11 Mar. 2024
In the latest instalment of our monthly series, our investment-grade, high-yield, emerging-market and global sovereign bond teams explore the key talking points in fixed income.
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Multi-asset allocation views: What’s behind Japan’s stock-market sugar rush?
8 Mar. 2024
Following unsuccessful attempts in the past, the Japanese government’s structural reforms now seem to be bearing fruit. This has contributed to a record high on the Japanese stock-market, but is it sustainable?
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Too hot, too cold, or just right? The outlook for investment-grade credit
21 Feb. 2024
Investment-grade credit has had an encouraging start to 2024 – but are these really “Goldilocks” conditions for the asset class? In their latest Q&A, James Vokins and Chris Higham from our credit team discuss opportunities and risks in this market.
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Bond Voyage: A journey into fixed income
7 Feb. 2024
In the latest instalment of our monthly series, our investment-grade, high-yield, emerging-market and global sovereign bond teams look ahead to the key themes that are likely to shape fixed-income markets in 2024.
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The tide turns: The outlook for fixed income in 2024
31 Jan. 2024
After a challenging period for fixed-income markets, conditions look to be right for a better year in bonds.
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Bond Voyage: A journey into fixed income
12 Jan. 2024
In this new year instalment of our monthly series, our investment-grade, high-yield, emerging-market and global sovereign bond teams share their fixed-income resolutions.
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Rates, regulation and the dash for cash: The outlook for liquidity investors in 2024
10 Jan. 2024
Alastair Sewell answers the seven key questions on the minds of liquidity investors heading into 2024.
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Bond Voyage: A journey into fixed income
12 Dec. 2023
In this festive instalment of our monthly series, our investment-grade, high-yield, emerging-market and global sovereign bond teams share their thoughts on key topics from across the fixed-income universe.
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Another brick in the (maturity) wall: The outlook for global high yield
7 Dec. 2023
The high-yield market is adjusting to a higher-for-longer interest rate environment, and some issuers may struggle to refinance due to rising borrowing costs. But there should be opportunities for discerning investors in 2024.
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The time to lead: Reforming multilateral development banks through a climate lens
28 Nov. 2023
To have a chance of limiting global warming to less than two degrees, the world must unlock huge investments in emerging markets. This is prompting calls for the reform of multilateral development banks, but will this be enough?
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From cash rich to cash strapped? Why the US consumer boom could run out of road
24 Nov. 2023
Our investment teams explain why buoyant US consumer spending will have to weaken eventually. That could pose problems for debt-laden consumer-facing companies.
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Bond Voyage: A journey into fixed income
10 Nov. 2023
In the latest instalment of our new monthly series, our investment-grade, high-yield, emerging-market and global sovereign bond teams share their thoughts on key topics from across the fixed-income universe.
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Storm before the calm? Emerging-market debt investors eye peak in US rates
8 Nov. 2023
Carmen Altenkirch and Nafez Zouk report back from the recent International Monetary Fund/ World Bank meetings in Marrakech on the implications for EMD investors.
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Softly does it? A Q&A with Peter Fitzgerald and Ian Pizer
24 Oct. 2023
The managers of the AIMS Target Return strategy explain why the prospects for a range of asset classes suddenly look much brighter.
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From here to maturity: Is the high-yield market ready for lift off?
19 Oct. 2023
Sunita Kara and Brent Finck argue it is more important than ever for investors to be selective when navigating the global high-yield landscape.
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Bond Voyage: A journey into fixed income
11 Oct. 2023
In the first of a new monthly series, our investment-grade, high-yield, emerging-market and global sovereign bond teams share their thoughts on key topics from across the fixed-income universe.