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Boxing clever: Portfolio construction in investment-grade credit
Mark Miller and James Vokins explain how our portfolio construction process for investment-grade credit could benefit investors in the new market regime.
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Higher for longer: A new era for fixed income
James Vokins and Chris Higham from our credit team believe the path of inflation will remain the central question for investors in 2023. Fixed-income investors should remain cautious until that path is more certain, but fundamental analysis can still uncover attractive opportunities.
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All change: Positioning for a new market regime and climate action in IG credit
Justine Vroman and Tom Chinery discuss the opportunities in investment-grade credit to drive climate action.
Our approach to investment-grade credit
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 credit markets and peers, while still providing downside protection.
Portfolio construction
Our proprietary risk allocation process uses custom sectors and targets volatility to match the benchmark. This allows a more flexible risk allocation approach when incorporating our best idiosyncratic ideas, while also generating returns from multiple sources.
Focussed portfolio
We complement our portfolio construction process with high-conviction stock selection. We manage concentrated portfolios of fewer issuers than competitors, drawing on our expertise in fundamental credit analysis. This can lead to excess returns uncorrelated to market beta and low correlation with peers.
Connected thinking
Our team and processes are global, allowing us to allocate to the most attractive opportunities, regardless of currency, from issuers around the world. ESG considerations and engagement play a critical role in our stock selection, holding equal importance alongside other risk factors.
Strategies in focus
Our longstanding team of portfolio managers follow a consistent approach across our range of investment-grade capabilities, including our flagship Global Investment Grade and Climate Transition Global Credit strategies.
While we run focussed portfolios with robust integration of ESG risk factors across the range, the Climate Transition Global Credit strategy offers the additional objective to achieve positive climate outcomes to support the transition to a low-carbon world.
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.
Aviva Investors Climate Transition Global Credit Fund
This strategy lends to investment grade companies globally that are either providing solutions to climate change or orientating their business models to a low-carbon economy, while avoiding the most carbon intense fossil fuel based companies.
Aviva Investors Global Investment Grade Corporate Bond: Strategy in brief
The strategy aims to deliver positive and consistent excess returns through all market cycles.
Key risks
For further information on the risks and risk profiles of our funds, please refer to the relevant KIID and Prospectus.
Investment 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). As a result their prices can be volatile.
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.
Investment grade credit team
James Vokins
Global Head of Investment Grade Credit
Justine Vroman
Senior Portfolio Manager
Chris Higham
Senior Portfolio Manager
Thomas Chinery
Senior Portfolio Manager, Credit
Fixed income views
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Bond Voyage: A journey into fixed income
9 Apr 2024
In the April edition of our monthly series, we explore the latest developments in fixed-income markets.
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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.
Explore our fixed income range
Need more information?
For further information, please contact our investment sales team.