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Our portfolio construction process draws from the firm’s broad research resources to integrate investment ideas generated through in-depth analysis. Bond issues are assessed through internally-developed categories to efficiently allocate risk, rather than through traditional benchmark classifications for sector or industry. In this way, the strategy seeks to break down credit markets in a distinct manner, seeking to add value through discovery of additional sources of alpha and risk reduction.
The strategy emphasizes downside protection, and applies overall volatility, tracking error and individual issuer limits. Duration is typically kept within ±1 year of the Bloomberg Barclays U.S. Long Government/Credit Index.
Watch this one-minute video to hear Josh Lohmeier, Head of North American Investment Grade Credit, discuss the origin of his unique approach portfolio construction and its optimization and integration into our Investment Grade credit strategy.
Investment grade bonds offer the potential benefits of attractive yields and enhanced diversification. Our unique approach to portfolio construction expands these benefits through additional sources of alpha and risk reduction.
U.S. Investment Grade Strategies
The U.S. Investment Grade strategies are investment solutions designed to invest in U.S. investment grade credit and are benchmarked against the Bloomberg Barclays Credit indexes.
Read more about the strategies
Fixed income views
COVID-19 and a brief history of emerging market debt drawdowns
2 Apr 2020
COVID-19 is testing investors’ patience. A brief history of EMD drawdowns suggests why they should do nothing.
The impact of COVID-19 on private debt
30 Mar 2020
Anxiety in public markets over the coronavirus will also test the resilience of private debt.
Are investors too complacent about the coronavirus?
21 Feb 2020
In the latest of our editorial series, Link, AIQ brings members of Aviva Investors’ investment strategy, equity and debt teams together to discuss the prospects for financial markets and the world economy in the face of the coronavirus epidemic.
Broadening global investment-grade horizons
20 Feb 2020
UK investors considering whether to allocate to global investment-grade credit may discover the broader diversification benefits can significantly improve a portfolio’s overall risk dynamics.
Multi-asset allocation views: The pros and cons of higher-yielding fixed income
16 Jan 2020
Sunil Krishnan asks whether higher-yielding fixed income assets remain good diversifiers for multi-asset portfolios in the current environment.
Reform: A route to resilience in emerging markets?
13 Jan 2020
Following a series of IMF meetings in Washington, D.C., Carmen Altenkirch and Dariusz Kedziora discuss their views on how reform prospects may shape emerging market debt.
Climate risk for insurers
12 Dec 2019
Climate risk has become a critical business issue, but a recent consultation by the European Insurance and Occupational Pensions Authority highlights confusion on how to assess it.
Global high yield in a sub-zero world
24 Sep 2019
In the strongest signal yet that central bank policies are upending the investment playbook, sub-zero conditions are extending to the high yield market for the first time. Sunita Kara, looks at the implications for investors.
Three steps to improve the green bond market
11 Sep 2019
Green bonds can be a powerful tool for attracting investment in environmental projects, but reforms are needed to promote further growth of the market, argues Colin Purdie.
Lagarde as ECB chief – independent but integrated?
22 Aug 2019
Christine Lagarde has been nominated to head the European Central Bank at a difficult time for monetary policy given growing fears of a recession in the euro zone. Despite much debate on her credentials, Stewart Robertson argues she is the right candidate for the job.
As China soars, emerging market investors need a rethink
21 Aug 2019
With China set to dominate EM equity indices over the coming decades, investors need to adjust their approach to the asset class, argues Alistair Way.
Italy’s threat to the euro has not gone away
30 Jul 2019
The Italian government remains on a collision course with Brussels despite recently striking a deal over its 2019 budget. A mis-step by either side could lead to a fresh euro zone crisis that the new head of the ECB might struggle to contain.
Sovereign interests: ESG matters in emerging market debt
31 May 2019
The emerging market debt universe offers investors an expanding pool of opportunities that may be better assessed when integrating environmental, social and governance factors.
Degrees of separation: Re-examining the relationship between EMD and the dollar
7 May 2019
Old assumptions on the traditional link between emerging market debt and the greenback are being challenged, writes Liam Spillane.
The EM framing fallacy: Emerging market debt and the trials of a misunderstood asset class
7 May 2019
How we frame things deeply affects how we process information and subsequently act on it. So much so that, despite convincing evidence to the contrary, it can be extremely hard to shake off a fabled preconception. It seems that once a label sticks it can be very hard to dislodge.
Could the euro zone periphery head off the rails again?
17 Apr 2019
Almost a decade on from the sovereign debt crisis, we explore whether the euro zone’s peripheral economies have materially improved or old vulnerabilities will again become apparent as growth slows.