Our approach

We are long-term, fundamentally driven investors seeking to capitalise on inefficiencies in the global high yield market. We aim to outperform the market through the cycle with less risk.

Holistic global portfolios

Our global high yield portfolios are constructed free from regional sleeves, giving our team more scope to generate alpha as well as opportunities for arbitrage from multi-currency issuers.

Integrated ESG

The high yield market is inefficient in identifying and pricing environmental, social and governance (ESG) risk, partly due to a lack of transparency and companies being on different journeys. Our portfolios benefit from in-depth research with full consideration of ESG risk factors.*

Higher quality

We believe over the long term, higher-rated high-yield names outperform. In pursuit of superior risk-adjusted returns, we focus on higher-rated credits, with a tactical allocation to lower-quality names when appropriate.

*Beyond any binding ESG constraints in the strategy and baseline exclusions policy, the investment manager retains discretion over final investment decisions, taking into account wider risk factors.

Potential benefits

Offering diversification and attractive income potential, high yield bonds can play an important role in a balanced portfolio.

Diversification

Given their low to moderate correlation with other asset classes, high yield bonds can provide diversification in a balanced portfolio.

Smoother returns

Over the past 25 years, high yield bonds have delivered similar returns to equities, but with almost half the volatility.

Attractive income

High yield bonds have the potential to generate attractive all-in yields, supported by stronger company fundamentals than a decade ago.

Key risks

For further information on the risks and risk profiles of our funds, please refer to the relevant fund documents. Past performance is not a guide to future performance.

Investment risk

The value of an investment and any income from it can go down as well as up. 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.

Derivatives risk

Investments can be made in derivatives, which can be complex and highly volatile. Derivatives may not perform as expected, meaning significant losses may be incurred.

Investor in funds

Investments can be made in other funds; this could mean the overall charges are higher.

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.

High yield investment strategies

Aviva Investors Global High Yield Bond Strategy

This strategy aims to maximise total returns and generate income. We have a strong emphasis on limiting drawdowns by investing in a high conviction, diversified portfolio of global high yield bonds.

Aviva Investors Short Duration Global High Yield Bond Strategy

This strategy follows a similar approach to our Global High Yield strategy, but focuses on bonds with a maturity of five years or less and duration of three years or less.

Our high yield investment team

  • Sunita Kara

    Global Co-Head of High Yield

  • Pierre Ceyrac

    Portfolio Manager

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