Our approach to investment grade credit investing
Our portfolio construction process draws from the firm’s broad research resources to integrate investment ideas generated through in-depth analysis. Investment grade bonds are assessed using our custom sector framework to allocate risk efficiently, rather than through traditional benchmark classifications for sectors or industries. In this way, our investment grade strategy seeks to break down credit markets in a distinct manner, seeking to add value through the discovery of additional sources of return and risk reduction. Portfolio construction is enhanced by our global collaborative team-based approach and the integration of non-binding ESG factors into our investment process.
Investment grade bonds offer the potential benefits of attractive yields and enhanced diversification. Our unique approach to portfolio construction helps capture these benefits and deliver consistent returns relative to the benchmark. We seek to achieve this with lower correlation to both the direction of credit markets and to peers, while still providing downside protection in bear markets.
Protecting portfolios to the downside should be part of any credit investment process given the asymmetry of returns. Our proprietary risk allocation process has downside protection embedded within it. The integration of ESG factors into the process is another, non-binding, step we take to protect to the downside.
Investment grade credit strategy
Aviva Investors Global Investment Grade Corporate Bond Fund
This strategy aims to deliver positive and consistent excess returns through all market cycles, irrespective of, and uncorrelated to, the behaviour of credit spreads by investing mainly in global investment grade corporate bonds.
For further information on the risks and risk profiles of our funds, please refer to the relevant KIID and Prospectus.
Read more about the funds
Explore our fixed income range
A range of strategies that aim to capture the full potential of high yield bond markets while protecting to the downside.
Emerging market debt
A range of emerging market debt strategies that invest across hard and local currency markets.
A range of strategies offering the potential for uncorrelated returns, portfolio diversification and low volatility in either a long-only or absolute return context.
A strategy that aims to enhance returns on cash by investing in short-maturity, highly rated fixed-income securities where T+0 liquidity is deemed unnecessary.
Fixed income views
Inflation, volatility and default risk: The outlook for high yield
13 Jun 2022
The co-heads of our global high yield team explain how the asset class is standing up to current headwinds.
Conflict, commodities and China: The outlook for EMD
13 May 2022
Aaron Grehan and Nafez Zouk from our emerging market debt team explain how the asset class is standing up to some significant headwinds.
Game over for Zambia? A test case for debt restructuring
12 Apr 2022
The economic fallout from the pandemic has left several poorer nations struggling to repay debt. China, the biggest single creditor to many, could carry considerable clout in negotiations. Zambia will prove an early test case, argues Carmen Altenkirch.
What does the data say? Credit in focus
31 Mar 2022
In this month’s instalment of our visual series on topical themes, we look at key trends in the credit market.
Now for the hard part…..The challenge of delivering net zero
29 Mar 2022
More than one fifth of the world’s largest listed companies have committed to net-zero targets, but few have detailed roadmaps to get there. Mirza Baig considers the challenges for investors managing transition pathways.
No time for heroes: How portfolio construction can help investors navigate unfamiliar economic and market regimes
22 Mar 2022
We are back in an old, but unfamiliar market regime. In a period where simple playbooks may falter, Jeremy Albers sets out why portfolio construction can make the difference.
Russia-Ukraine update: The ten key questions for EMD investors
18 Mar 2022
We assess the near and longer-term implications of Russia’s invasion of Ukraine on emerging-market debt.
How bond investors can influence companies and governments to change their behaviour for the better
17 Mar 2022
Bondholders are starting to use their power to influence corporate behaviour in areas such as climate change, social inequality and biodiversity loss.
China, inflation and politics: Three reasons for EM turbulence
24 Feb 2022
Emerging market assets have underperformed developed market peers over the past decade. While this has led to valuation gaps, selectivity will be critical, argues David Nowakowski.
Untapped potential: Harnessing the full power of bondholder engagement
31 Jan 2022
Investor influence has long been confined to that of equity shareholders. Yet bondholders wield a lot of power. Can they harness it for positive change?
The future of pharma: Increased returns or the age of biotech?
8 Dec 2021
After decades of low returns on research and development (R&D), the healthcare sector is producing a slew of innovations, from drugs to diagnostics. But with many coming from new entrants, will big pharmaceutical companies manage to keep up with the times?
The cost of climate change: A big threat to sovereign debt?
3 Dec 2021
Governments around the world are struggling to avert a climate catastrophe. Regardless of whether they succeed, climate change threatens adverse consequences for government bonds, although market impacts are likely to vary.
Credit: The long and short of ESG investing
25 Nov 2021
Credit is an asymmetric asset class. The upside is a coupon payment and limited capital appreciation; the downside is a default to zero. For all maturities and bond types, ESG integration can play a crucial role in mitigating risk.
The long decline: Why trend economic growth is set to go on falling
12 Nov 2021
Trend rates of economic growth, which have been on the decline for decades in the world’s leading economies, look set to fall further. That will have big implications for governments, companies, households and investors, argues Stewart Robertson.
COVID, China and the Fed: Diverging EM debt fortunes
3 Nov 2021
Relatively low vaccination rates, slowing Chinese growth, and terms of trade gains that may have largely peaked mean emerging market economies face several headwinds in 2022. Varying degrees of resilience and vulnerability are likely to result, argue Nafez Zouk and Carmen Altenkirch.
Six themes for emerging markets
28 Oct 2021
The International Monetary Fund (IMF) annual meetings are always a chance to reflect on the key trends affecting emerging markets. This year was no different. Carmen Altenkirch and Nafez Zouk engaged with policymakers and delegates to ascertain the real impact of the COVID pandemic on growth, fiscal metrics, and debt burdens.