Our approach to global bond funds
A core capability with a ten-year track record, our aim is to generate stable and consistent attractive risk-adjusted returns relative to its benchmark. We do this through robust portfolio construction, harnessing firm-wide expertise and embedding (non-binding) ESG considerations throughout our investment process.
*This fund promotes environmental and social characteristics however does not have a sustainable investment objective. To be eligible for investment, sovereign issuers must meet the minimum standard of the Investment Managers’ ESG Sovereign Assessment. All investments that are selected as part of the ESG analysis must follow good governance practices and not be excluded by the ESG Baseline Exclusions Policy. It may however not be possible to perform ESG analysis on cash, derivatives and other third-party collective investment schemes.
Outside of any binding ESG criteria, the Investment Manager retains discretion over investment decision making.
Specialists in fixed income investments
Nearly half of Aviva Investors' assets are in fixed income securities, across government bonds, global investment-grade credit, high yield credit and emerging-market debt.
Experienced investment team
Our portfolio managers have 32 years of combined industry experience and can draw on the expertise of more than 60 investment professionals covering a wide range of asset classes globally as part of our Multi-asset and Macro, Liquidity Driven Investments and Emerging Market Debt teams.
Robust portfolio construction
Top-down and bottom-up five-step investment approach with a strong emphasis on the MFVT model: macro, fundamental, valuation, and technical. The team has global and local expertise to identify investment opportunities and considers contributions to major risk factors such as interest rates, spreads, inflation, and country risk.
Potential benefits of global sovereign bond funds
Our global sovereign bond fund has the potential for attractive, sustainable, risk-adjusted returns from investment-grade economies.
Global opportunity set
Global collaboration without predetermined risk biases
Alpha generation
Investment process aiming to generate uncorrelated risk-adjusted returns
Responsible investment
ESG considerations embedded* beyond the conventional approach
A free lunch: The case for a diversified global sovereign bond allocation
Recent events in the UK are a reminder of the benefit of a globally diversified sovereign bond allocation and avoiding home bias, as Jennie Byun, Kurt Knowlson and Steve Ryder explain.
Aviva Investors Global Sovereign Bond: Strategy in brief
As the era of cheap money comes to an end, greater emphasis will be placed on economic fundamentals for investment returns. The Global Sovereign Bond strategy, with its global and active approach to sourcing diversified risk-adjusted returns, is well placed to navigate this new market environment.
Key risks
For full information on the risks and risk profiles of our funds please refer to the relevant KIID and prospectus.
The value of an investment and any income from it can go down as well as up and can fluctuate in response to changes in currency and exchange rates. Investors may not get back the original amount invested.
Investment risk
The value of an investment and any income from it can go down as well as up and can fluctuate in response to changes in currency exchange rates. Investors may not get back the original amount invested.
Derivatives risk
The Fund uses derivatives, these can be complex and highly volatile. Derivatives may not perform as expected meaning the Fund may suffer significant losses.
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.
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.
Currency risk
Changes in currency exchange rates could reduce investment gains or increase investment losses. Exchange rates can change rapidly, significantly and unpredictably.
Market risk
Prices of many securities (including bonds, equities and derivatives) change continuously, and can at times fall rapidly and unpredictably.
Counterparty risk
The Fund could lose money if an entity with which it does business becomes unwilling or is unable to meet its obligations to the Fund.
Global Sovereign Bond Fund team
Edward Hutchings
Head of Rates
Kurt Knowlson
Senior Portfolio Manager
Steve Ryder
Senior Portfolio Manager
Dan Bright
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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Buy-and-maintain credit: Taking the road to net zero
10 Dec 2024
Long-term trends like climate change are particularly important for buy-and-maintain investors. How can they integrate climate objectives, such as net zero by 2050, into their portfolios?
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Bond Voyage: A journey into fixed income
9 Dec 2024
This month, we explore how US Treasuries are taking a breath, why 2025 could be the year of carry for high yield, what increasing dispersion means for emerging markets, and how surging M&A activity could affect investment-grade bonds.
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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.