Aviva Investors - Senior ABS Income Fund Zh USD Acc
Fund overview
Objective: To earn income and capital growth over the long term (5 years or more), by investing in a diversified portfolio of high-grade structured finance securities.
Investment Strategy: The Sub-Fund invests mainly in structured finance securities issued globally, including up to 5% of the Sub-Fund’s total net assets in Emerging Markets. Specifically, at all times, the Sub-Fund invests at least two-thirds of total net assets (excluding ancillary liquid assets, eligible deposits, money market instruments and money market funds) in structured finance securities, including but not limited to asset-backed securities (ABS), mortgage-backed securities (MBS), and collateralised loan obligations (CLOs). These bonds may be secured on residential, commercial, auto, consumer or corporate loans, among other asset types. At least 80% of the structured finance securities investments will be into senior tranches, defined as AAA-AA- by Standard & Poor’s and Fitch or Aa3 or higher by Moody’s.
The Sub-Fund does not invest in participation rights, or in convertible securities.
The Sub-Fund may invest up to 20% of total net assets in investment grade structured finance securities that do not meet the criteria of senior tranche and up to 5% of total net assets in high yield structured finance securities, defined as BB+ and below by Standard & Poor’s and Fitch or Ba1 and below by Moody’s.
Benchmark (performance comparison): Sterling Overnight Index Average (SONIA)
Sub-Fund Dealing Day Orders to buy, switch and redeem shares are processed each Business Day.
Fees and expenses
Risks
Asset Backed Securities and Mortgage-Backed Securities: The Fund may invest in asset‑backed securities, whose value depends on the performance of the underlying loans or receivables. Changes in interest rates, early or late repayments, or complex payment structures can reduce or delay returns. In stressed market conditions, asset‑backed securities can become less liquid and more difficult to value or sell.
Collateralised Loan Obligations: In addition to standard debt and ABS risks (e.g., interest rate, credit and default risk), CDOs and CLOs involve further risks, including: (i) collateral cash flows may be insufficient to meet interest or other payments; (ii) collateral may decline in value, be downgraded or default; (iii) a Fund may hold subordinated tranches exposed to higher losses; and (iv) their complex structures can be hard to fully assess, creating valuation challenges, potential disputes with issuers, or unexpected investment outcomes.
Credit Risk: A bond or money market security could lose value if the issuer's financial health weakens.
Currency Risk: Changes in currency exchange rates could reduce investment gains or increase investment losses. Exchange rates can change rapidly, significantly and unpredictably.
Derivatives Risk: Derivatives are instruments that can be complex and highly volatile, have some degree of unpredictability (especially in unusual market conditions), and can create losses significantly greater than the cost of the derivative itself.
Emerging Markets Risk: Compared to developed markets, emerging markets can have greater political instability and limited investor rights and freedoms, and their securities can carry higher equity, market, liquidity, credit and currency risk.
Liquidity Risk: Certain assets held in the Fund 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.
Market Risk: Prices of many securities (including bonds, equities and derivatives) change continuously, and can at times fall rapidly and unpredictably.
Operational Risk: Human error or process/system failures, internally or at our service providers, could create losses for the Fund.
Management
Important information
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