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
For further information on the risks and risk profiles of our funds, please refer to the relevant KIID and Prospectus. Past performance is not a guide to future performance.
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.
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 our Global High Yield strategy, but focuses on bonds with a maturity of five years or less and duration of three years or less.
Our high yield investment team
Sunita Kara
Global Co-Head of High Yield
Pierre Ceyrac
High Yield Portfolio Manager
Need more information?
For further information, please contact our investment sales team.
Read more about the funds
Explore our fixed income range
Fixed income views
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The case for ReturnPlus: A capital efficient enhanced liquidity strategy
29 Nov 2024
The ReturnPlus strategy invests in a broad range of liquidity sub-asset classes, while consuming limited regulatory capital. Our ReturnPlus team explains why investors should consider an allocation to the strategy.
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From tactical to strategic: Investing in emerging-market hard currency debt in your fixed income portfolio
18 Nov 2024
Investors should consider EMD hard currency for a long-term strategic allocation within fixed income portfolios to boost portfolio returns, rather than just a short-term tactical play.
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Bond Voyage: A journey into fixed income
4 Nov 2024
This month, our fixed-income investment teams discuss US elections, IMF meetings, US versus European high yield, managing declining rates for cash, and what the future might hold in store for gilts.
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Resisting the lure of beta: A differentiated approach to portfolio construction in investment grade
18 Oct 2024
Global head of investment-grade credit James Vokins explains how a differentiated approach to portfolio construction can help credit investors avoid the pitfalls of being reliant on beta.
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Power play: Why political risk matters for emerging-market debt investors
11 Oct 2024
In this article, we explore why measuring and continually monitoring geopolitical risks is essential for investors in EM debt.
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Bond Voyage: A journey into fixed income
10 Oct 2024
In our October edition of Bond Voyage, our fixed-income teams reflect on US elections, US rates, France’s slide towards the periphery of EU issuers, and ESG considerations in Asia.
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Multi-asset allocation views: Where next for markets after the summer storms?
9 Oct 2024
Volatility returned to markets in the third quarter of the year. While the short-term drivers are not unduly worrying, Sunil Krishnan argues multi-asset investors will need to be watchful over the medium term.
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Bond Voyage: A journey into fixed income
16 Sep 2024
This month, we discuss the books that inspired our investment teams over the summer.
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Standing tall: Three factors behind the resilience of emerging-market debt
13 Sep 2024
In this article, we explore what’s behind emerging markets’ impressive performance in the face of global economic volatility, and investigate how EM debt investors can take advantage.
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An ABS renaissance? Why it may be time for insurers to reconsider asset-backed securities
2 Sep 2024
Securitisation performs a vital role in capital markets and asset-backed securities have historically been a core holding for insurance companies. This article revisits the investment thesis for ABS and explores why the stage may be set for something of a renaissance.
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Bond Voyage: A journey into fixed income
9 Aug 2024
In this summer edition of Bond Voyage, we discuss topical themes in liquidity, emerging-market debt, investment-grade credit and global sovereign bonds.
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Time to get active: Finding opportunities in emerging-market debt
30 Jul 2024
Emerging markets have remained robust amid the economic and political uncertainties of 2024, but active management will be important if debt investors are to identify standout performers over the coming months.
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Riding the technical tailwinds: The outlook for investment-grade credit
25 Jul 2024
Credit markets have had a comparatively easy ride so far in 2024, and investment-grade corporate spreads are now at some of their tightest levels for a long time. But investors must guard against complacency.
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Liquidity optimisation for insurers: Building a bespoke portfolio solution
9 Jul 2024
In the third part of our liquidity optimisation series, we look at how bespoke liquidity portfolios that take into account the interplay between different assets can suit the needs of insurers.
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Finding the right blend: Optimising asset allocation in liquidity pools
5 Jul 2024
In the second part of our new article series on liquidity optimisation, Alastair Sewell investigates how investors can find the right mix of assets for their liquidity pools.
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The difficult last mile: Inflation, Treasury supply and the outlook for global sovereign bonds
4 Jul 2024
With the focus shifting from interest rate cuts to the likelihood of rates staying higher for longer, Steve Ryder and Daniel Bright assess the possible outcomes and implications of higher rates and monetary policy divergence in debt markets.