Enhanced yield and return potential with hybrid bond investing
We bring scale, experience and discipline to hybrid investing. We have over two decades of experience and manage more than US$2 billion in hybrid debt across our fixed income platform, with one of very few dedicated strategies in the market.
The Aviva Investors Global Hybrid Bond strategy is designed to deliver enhanced income and diversify portfolios in a changing fixed income environment marked by sustained demand for income, an evolving regulatory landscape, and a broadening opportunity set.
Why invest in global hybrid bonds?
Hybrids can offer attractive yield enhancement from high quality issuers, with powerful diversification benefits versus High Yield, lower effective duration than traditional investment grade credit, and support from a growing, increasingly institutionalised global market.
Our global hybrid bond strategy can play both a strategic and tactical role within portfolios, combining high quality hybrids with selective higher yielding opportunities to deliver differentiated return potential across market cycles, underpinned by disciplined risk management.
High yield return profile
Hybrids can offer a meaningful, structural yield premium over senior bonds from the same investment grade issuers, providing a potential for enhanced income without stepping down the credit quality spectrum.
Investment grade quality
Issued by high‑quality, cash‑generative companies, hybrids carry materially lower default risk than traditional high yield and lower effective duration than investment grade, enhancing a portfolio's risk-return dynamic.
Compelling diversification benefits
Hybrids provide exposure away from cyclical high yield sectors and financials-heavy investment grade, into structural capex-driven themes such as energy transition, grid modernisation, AI power demand and digital infrastructure.
A scaled, integrated fixed income franchise
Explore how Aviva Investors is evolving its fixed income platform for today’s market challenges, with Fraser Lundie, Global Head of Fixed Income, highlighting how our latest strategies are designed to support investors in an ever-changing market.
Transcript for video A scaled, integrated fixed income franchise
Fixed income plays a central role in investor portfolios – increasingly relied upon for resilient income and portfolio stability across market environments.
At Aviva Investors, fixed income is a core capability – built over decades and continually evolving to meet the needs of wealth, institutional and insurance clients.
We manage fixed income at scale across public and private markets, drawing on deep fundamental research, active risk management and close collaboration across specialist teams.
Our integrated platform is built around client objectives – delivering solutions across the risk‑and‑return spectrum, with capital preservation and dependable outcomes through the cycle.
The fixed income opportunity set has broadened significantly, creating more opportunities for income and diversification than ever before.
But it has also become more complex, as markets overlap and risks become more nuanced.
Success now depends on skilled credit selection, flexible portfolio construction, and a clear understanding of how risks interact.
Our fixed income platform brings together breadth of capability, specialist research and data‑driven insight to support more informed outcomes for clients.
This shift has driven closer collaboration between our Fixed Income and Multi‑Asset teams,ensuring solutions are co‑created around real portfolio needs.
That approach is reflected in the launch of three new fixed income strategies, each designed to deliver distinct portfolio outcomes – from growth to capital preservation and income.
We’re launching dedicated strategies in Senior Asset‑Backed Securities and Global Hybrids – asset classes where we’ve invested successfully for decades.
These strategies act as targeted building blocks, providing access to specialist areas of fixed income with distinct risk and return drivers, delivering high-quality income and diversification.
For investors seeking flexible, outcome-focused solutions, we’re launching our Global Unconstrained Credit strategy, backed by the scale and breadth of our fixed income platform.
Its flexible, benchmark‑agnostic approach enables dynamic allocation across sectors and regions, targeting dependable income while actively managing risk through the cycle.
Alongside our core strategies, we design tailored fixed income portfolios around client needs.
Across every mandate, our focus is the same: resilient outcomes through disciplined portfolio construction – not market beta.
Together, these capabilities position Aviva Investors as a comprehensive fixed income partner, built to support investors through today’s complexity and every stage of the cycle.
Explore fund performance and key data
Find the latest prices and performance data in our fund centre via the links below. If you have any questions, please contact our distribution team.
Aviva Investors Global Hybrid Bond Fund (SICAV)
This fund aims to enhance income and diversify portfolios in a changing fixed income environment marked by sustained demand for income, evolving regulation, and an expanding opportunity set.
Investment philosophy
Backed by an experienced portfolio management team, our approach combines top‑down strategic insight, rigorous capital structure analysis, AI-driven driven insights and is supported by close collaboration across our fixed income platform. Together, this disciplined framework aims to deliver resilient and consistent outcomes for clients across market cycles.
Global and flexible allocation
A global and flexible approach unlocks diversified alpha across the hybrid universe, by accessing opportunities beyond European markets and selectively investing in higher‑yielding and financial hybrids.
Optimising portfolio resilience
Using our proprietary Optix toolkit, we optimise portfolios for both efficiency and resilience. Our aim is not just to maximise returns per unit of risk, but to build portfolios that can perform more reliably when markets behave unexpectedly.
Bottom-up value seeking
We focus on resilient, high-conviction credits through rigorous bottom-up analysis, ensuring hybrid risk is appropriately compensated by yield to deliver balanced and enhanced income versus traditional credit
The case for corporate hybrids
Corporate hybrid bonds are a rapidly growing asset class.
As monetary policy, demographics and income needs evolve, corporate hybrids offer investors enhanced yield without materially increasing credit risk. Issued mainly by investment grade non-financial companies, corporate hybrids blend debt and equity features. Download our paper to learn more about the structure, benefits, risks and key dynamics of the corporate hybrid universe.
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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In this month’s Bond Voyage, we introduce SHIELD – the downside protection framework used by our fixed income division. SHIELD is designed to ensure our portfolios remain resilient in challenging market conditions while maintaining capital efficiency.
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Bond Voyage: Higher for longer – again?
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Show me the value: Investing in carbon removal, part three
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In this article, we explore the potential benefits of carbon removal strategies for institutional investors.
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Bond Voyage: EM local currency debt: The stars align
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In this month’s Bond Voyage, our emerging market (EM) debt team explains why, after a few false dawns, the stars seem to have aligned for EM local currency debt to outperform other global fixed income assets.
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Show me the value: Investing in carbon removal, part two
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In this article, we explore the different types of carbon credits, the development of the markets on which they are bought and sold, and how institutions can use them to achieve their investment and sustainability goals.
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Show me the value: Investing in carbon removal, part one
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New markets are emerging to enable institutions to invest in nature and potentially achieve sustainability-related objectives alongside key financial outcomes.
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Bucking the trend: Emerging market debt shows its mettle amid wider market turbulence
19 May 2025
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From tactical to strategic: Investing in emerging-market hard currency debt in your fixed-income portfolio
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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: Heading into the unknown
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In May, our EMD team discusses the most effective way to manage fixed income through episodes of heightened uncertainty.
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Bond Voyage: Up and down and around
4 Apr 2025
This month, our fixed income teams discuss the drivers behind emerging and developed market convergence, what the US hybrid boom has in store, the continued popularity of money-market funds, and the ups and downs of high yield.
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Bond Voyage: Ready, set, watch
10 Mar 2025
This month, our fixed income teams discuss the boom in hybrid issuance and weigh up the risks and opportunities of potential tariffs, interest rate moves and fiscal dynamics.
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Bond Voyage: The resilience factor
10 Feb 2025
As we negotiate an uncertain landscape, our fixed income teams reflect on potential sources of resilience.
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Bond Voyage: In the starting blocks
13 Jan 2025
With a new US president poised to take office, central banks diverging and ongoing political uncertainty, how are the key fixed income asset classes positioned for the year ahead?
Bond Voyage
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.
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.
Key risks
For further information on the risks and risk profiles of our funds, please refer to the relevant KIID and Prospectus.
Investment/objective 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.
Convertible securities risk: Convertible bonds can earn less income than comparable debt securities. They can also earn less growth than comparable equity securities, and carry a high level of risk.
Counterparty risk: The Strategy could lose money if an entity with which it does business becomes unwilling or is unable to meet its obligations to the Strategy.
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.
Currency risk: The strategy is exposed to different currencies. Derivatives are used to minimise, but may not always eliminate, the impact of movements in currency exchange rates.
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. Derivatives can have some degree of unpredictability (especially in unusual market conditions), and can create losses significantly greater than the cost of the derivative itself.
Emerging market risk: Investments can be made in emerging markets. These markets may be volatile and carry higher risk than developed markets.
Interest Rate risk: When interest rates rise, bond values generally fall. This risk is generally greater for longer-term bonds and for bonds with higher credit quality.
Leverage Markets risk: A small price decline on a "leveraged" underlying investment will create a correspondingly larger loss for the Strategy. A high overall level of leverage and/or unusual market conditions could create significant losses for the Strategy.
Real estate/ Infrastructure/risks: Investments can be made in real estate, infrastructure and illiquid assets. Investors may not be able to switch or cash in an investment when they want because real estate may not always be readily saleable. If this is the case we may defer a request to switch or cash in shares or units.
Market risk: Prices of many securities (including bonds, equities and derivatives) change continuously, and can at times fall rapidly and unpredictably.
Sustainable Investing risk: The level of sustainability risk to which the Strategy is exposed, and therefore the value of its investments, may fluctuate depending on the investment opportunities identified by the Investment Manager.
Operational risk: Human error or process/system failures, internally or at our service providers, could create losses for the Strategy.
Global hybrid bond team
Justine Vroman
Senior Portfolio Manager
Thomas Chinery
Senior Portfolio Manager
Nayeem Islam
Portfolio Manager
Mark Dove
Credit Portfolio Manager
Matt Roberts
Senior Investment Specialist
Explore
Fixed income
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Senior ABS Income
This strategy aims to earn income and capital growth over the long term (five years or more), by investing in a diversified portfolio of high-grade structured finance securities.
Global Unconstrained Credit
A flexible, high-conviction strategy for alpha generation and capital preservation across cycles