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.

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Aviva Investors Global Sovereign Bond: Strategy in brief

PDF 684.2 KB 7 pages

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.

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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

    Junior Portfolio Manager, Global Rates

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