Investing in the climate transition

We believe that the risks and opportunities associated with climate change demand urgent action, as limiting its impacts is imperative not only for protecting the environment but also for ensuring long-term economic growth and stability. Addressing climate change by transitioning to a low-carbon economy can mitigate systematic risks, unlock new opportunities and create more resilient markets. Companies that effectively manage their impact on climate and adapt to these challenges are better positioned to thrive in this evolving landscape, presenting an opportunity to deliver sustainable value over the long term.

The Aviva Investors Global Climate Credit Fund is an actively managed strategy focused on global investment-grade bonds. It aims to outperform the Bloomberg Global Aggregate Corporate Index by investing in companies that are effectively addressing climate change and aligning with a net zero emissions pathway by 2050.

The Fund targets bonds from two types of companies:

Solutions: Companies providing goods and services that help mitigate and adapt to climate change.

Operations: Companies adjusting their business models to be resilient in a warmer climate and adaptable to a low-carbon economy.

The Fund also invests in:

Green, Social, and Sustainability Bonds: Bonds funding projects with positive environmental, social, or sustainability impacts.

Sustainability-Linked Bonds: Bonds tied to achieving key performance indicators that promote positive environmental, social, or sustainability outcomes.

Generate income and long-term capital growth

Alignment with a net-zero emissions pathway by 2050

Our approach

We seek to identify the potential winners from the transition across a broad range of sectors. First, we apply our firm-wide baseline exclusions policy and Paris-Aligned Benchmark (PAB) exclusions. We then invest in debt securities of companies either mitigating or adapting to climate change, or companies aligning their operations to be resilient in a low-carbon economy. Furthermore, we leverage our scale and influence and engage with portfolio companies to accelerate progress. We believe this approach can lead to the following investor benefits: profitable growth and resilience across market cycles while seeking to support the climate transition.

Additional focus on Operational Leaders

All sectors of the economy will be impacted by climate change, hence we don’t just invest in ‘Solutions’ companies whose products and services aim to mitigate or adapt to climate change, we go beyond that to also invest in ‘Operations’ companies that are aligning their business models to be resilient in a warmer climate and adaptable to a low-carbon economy. This can help maximise the strategy’s potential to deliver consistent, long-term outperformance as part of a core investment grade allocation.

Optimised portfolio construction

Viewed as an independent source of persistent alpha in both risk-on and risk-off credit markets. Our portfolio construction approach emphasises disciplined risk management and a beta-neutral strategy. This method prioritises downside protection, mitigating aggressive drawdowns and sudden spread blowouts, while targeting high-conviction security and sector opportunities. By focusing on credit alpha rather than beta, the approach enhances excess returns and optimizes risk allocation, making the portfolio resilient to market volatility and macroeconomic uncertainties. Our aim is to achieve consistency designed to perform well across various market conditions, ensuring long-term growth and stability.

Driving positive climate action through our bespoke engagement programme

Our bespoke and structured engagement programme encompasses two main asks of companies in which we invest: adopt science-based targets and provide CDP disclosures – in addition to further tailored asks to improve their climate credentials. Science based targets can provide a clearly defined pathway to reduce greenhouse gas emissions in line with the Paris Agreement and we view CDP disclosure as the most complete source of corporate environmental data in a standardised format.

Climate investment fund

Aviva Investors Global Climate Credit Fund (SICAV)

An actively managed strategy focused on global investment-grade bonds. It invests in companies that are effectively addressing climate change and aligning with a net zero emissions pathway by 2050.

Evidencing how we are progressing against our sustainable outcomes objective

This report looks at the progress the fund has made in 2023, in delivering tangible sustainable outcomes for clients, across the companies invested in as well as through company engagement and macro stewardship.

Read more

Bond Voyage: A journey into fixed income

Each month, our freewheeling fixed-income newsletter gathers insights from our high-yield, investment-grade, emerging-market and global sovereign bond teams.

See the latest edition
Bond Voyage

Key risks

For further information on the risks and risk profiles of our funds, please refer to the relevant KIID and Prospectus.

Investment risk and currency 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 and exchange rates. Investors may not get back the original amount invested.

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), and as a result their prices can be volatile. 

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. 

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.

Sustainability risk

The level of sustainability risk may fluctuate depending on which investment opportunities the investment manager identifies. This means that the fund is exposed to sustainability risk which may impact the value of investments over the long term. 

Global Climate Credit team

Climate change views

Explore all funds

Access key fund documentation and performance reports.

View Fund Centre

Need more information?

For further information, please contact our investment sales team.

Contact us

Note for UK Investors: This Fund is domiciled in Luxembourg and is authorised by the Commission de Surveillance du Secteur Financier (CSSF). The Fund is recognised in the UK under the Overseas Funds Regime but is not a UK-authorised Fund and therefore is not subject to UK sustainable investment labelling disclosure requirements. UK investors should be aware that they can make a complaint about the fund, its management company, or its depositary. However, complaints may not be eligible for resolution by the UK’s Financial Ombudsman Service and any claims for losses related to the management company or depositary will not be covered by the Financial Services Compensation Scheme (FSCS). UK investors should consider seeking their own financial advice before making any decisions to invest and refer to the scheme prospectus for further information.