Our approach
Strategic bond funds can offer investors exposure to many different areas of fixed income such as government, corporate and high-yield bonds, offering portfolio diversification. However, strategic bond funds come in many flavours. The strategic bond sector is one with a high dispersion of returns, inconsistent performance, and high correlation with the high-yield market.
Our Strategic Bond Fund has a long track record managed with a consistent process and team. We invest in the best ideas across global fixed income markets using a long-term, fundamentally driven approach within a focused portfolio. We seek to provide clients with superior risk-adjusted returns through market cycles and minimise drawdowns during periods of volatility.
Potential benefits
The Aviva Investors Strategic Bond Fund represents a compelling option for investors seeking to outsource their fixed income decision making to a truly global team of bond specialists. The fund is designed to provide a strategic anchor for a core fixed income allocation:
Single solution
The fund is a convenient solution for investors looking to gain diversified exposure across global fixed income markets in a standalone strategy.
Global
The fund can invest globally, accessing a wide opportunity set to construct a portfolio that can perform throughout market cycles. However, it is important to note that at least 80 per cent of the portfolio’s assets will either be sterling-denominated or hedged back to sterling.
Total return focus
Long-term outperformance with less risk. Fixed income investing involves asymmetric risks that are skewed to the downside – in other words, the potential losses are greater than the potential gains. This can result in a tendency to focus on avoiding defaults. However, when trying to maximise total returns, identifying winners is also crucial.
Strategic Bond Fund strategies
Aviva Investors Strategic Bond Fund
A total-return fixed income solution that utilises a flexible, unconstrained approach across global bond markets, seeking to deliver long-term excess returns.
Strategy resources
Solving the chocolate box problem: The Aviva Investors Strategic Bond Fund
The opacity and wildly differing risk-return profiles of strategic bond funds can be a headache for advisers. We explain how the Aviva Investors Strategic Bond Fund could provide a viable solution.
Key risks
For further information on the risks and risk profiles of our funds, please refer to the relevant KIID and Prospectus.
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.
Illiquid securities 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.
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 fund uses derivatives; these can be complex and highly volatile. Derivatives may not perform as expected, which means the fund may suffer significant losses.
Convertible securities risk
Convertible bonds can earn less income than comparable debt securities and less growth than comparable equity securities, and carry a high level of risk.
Strategic Bond Fund team
Chris Higham
Senior Portfolio Manager
James Vokins
Global Head of Investment Grade Credit
Need more information?
For further information, please contact our investment sales team.
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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Credit spreads and climate solutions: The outlook for climate-focused bond investors
8 Feb 2024
For the first time in three years, interest rates should no longer be a headwind for credit markets in 2024, but other forms of uncertainty may affect climate-aware bond investors. Our credit experts discuss the key themes they expect to play out over the coming months.
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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.