Our approach to global bond funds
A core capability with a ten-year track record, our aim is to generate stable and consistent attractive risk-adjusted returns relative to its benchmark. We do this through robust portfolio construction, harnessing firm-wide expertise and embedding (non-binding) ESG considerations throughout our investment process.
*This fund promotes environmental and social characteristics however does not have a sustainable investment objective. To be eligible for investment, sovereign issuers must meet the minimum standard of the Investment Managers’ ESG Sovereign Assessment. All investments that are selected as part of the ESG analysis must follow good governance practices and not be excluded by the ESG Baseline Exclusions Policy. It may however not be possible to perform ESG analysis on cash, derivatives and other third-party collective investment schemes.
Outside of any binding ESG criteria, the Investment Manager retains discretion over investment decision making.
Specialists in fixed income investments
Nearly half of Aviva Investors' assets are in fixed income securities, across government bonds, global investment-grade credit, high yield credit and emerging-market debt.
Experienced investment team
Our portfolio managers have 32 years of combined industry experience and can draw on the expertise of more than 60 investment professionals covering a wide range of asset classes globally as part of our Multi-asset and Macro, Liquidity Driven Investments and Emerging Market Debt teams.
Robust portfolio construction
Top-down and bottom-up five-step investment approach with a strong emphasis on the MFVT model: macro, fundamental, valuation, and technical. The team has global and local expertise to identify investment opportunities and considers contributions to major risk factors such as interest rates, spreads, inflation, and country risk.
Potential benefits of global sovereign bond funds
Our global sovereign bond fund has the potential for attractive, sustainable, risk-adjusted returns from investment-grade economies.
Global opportunity set
Global collaboration without predetermined risk biases
Alpha generation
Investment process aiming to generate uncorrelated risk-adjusted returns
Responsible investment
ESG considerations embedded* beyond the conventional approach
A free lunch: The case for a diversified global sovereign bond allocation
Recent events in the UK are a reminder of the benefit of a globally diversified sovereign bond allocation and avoiding home bias, as Jennie Byun, Kurt Knowlson and Steve Ryder explain.
![](http://static.aviva.io/content/dam/aviva-investors/main/assets/views/aiq-investment-thinking/2022/10/a-free-lunch-the-case-for-a-diversified-global-sovereign-bond-allocation/a-free-lunch-the-case-for-a-diversified-global-sovereign-bond-allocation.$16x9-mobile-4cols$.jpg?$16x9-mobile-4cols$)
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Aviva Investors Global Sovereign Bond: Strategy in brief
As the era of cheap money comes to an end, greater emphasis will be placed on economic fundamentals for investment returns. The Global Sovereign Bond strategy, with its global and active approach to sourcing diversified risk-adjusted returns, is well placed to navigate this new market environment.
Key risks
For full information on the risks and risk profiles of our funds please refer to the relevant KIID and prospectus.
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.
Investment 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 exchange rates. Investors may not get back the original amount invested.
Derivatives risk
The Fund uses derivatives, these can be complex and highly volatile. Derivatives may not perform as expected meaning the Fund may suffer significant losses.
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.
Currency risk
Changes in currency exchange rates could reduce investment gains or increase investment losses. Exchange rates can change rapidly, significantly and unpredictably.
Market risk
Prices of many securities (including bonds, equities and derivatives) change continuously, and can at times fall rapidly and unpredictably.
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.
Global Sovereign Bond Fund team
![](http://static.aviva.io/content/dam/aviva-investors/main/assets/about/our-people/e/edward-hutchings.$16x9-mobile-lg-4cols$.jpg?$16x9-mobile-lg-4cols$)
Edward Hutchings
Head of Rates
![](http://static.aviva.io/content/dam/aviva-investors/main/assets/about/our-people/k/kurt-knowlson.$16x9-mobile-lg-4cols$.jpg?$16x9-mobile-lg-4cols$)
Kurt Knowlson
Senior Portfolio Manager
![](http://static.aviva.io/content/dam/aviva-investors/main/assets/about/our-people/s/steve-ryder.$16x9-mobile-lg-4cols$.jpg?$16x9-mobile-lg-4cols$)
Steve Ryder
Senior Portfolio Manager
![](http://static.aviva.io/content/dam/aviva-investors/main/assets/about/our-people/d/dan-bright-2158.$16x9-mobile-lg-4cols$.jpg?$16x9-mobile-lg-4cols$)
Dan Bright
Junior Portfolio Manager, Global Rates
Need more information?
For further information, please contact our investment sales team.
Explore our fixed income range
Fixed income views
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Liquidity optimisation for insurers: Building a bespoke portfolio solution
9 Jul 2024
In the third part of our liquidity optimisation series, we look at how bespoke liquidity portfolios that take into account the interplay between different assets can suit the needs of insurers.
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Finding the right blend: Optimising asset allocation in liquidity pools
5 Jul 2024
In the second part of our new article series on liquidity optimisation, Alastair Sewell investigates how investors can find the right mix of assets for their liquidity pools.
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The difficult last mile: Inflation, Treasury supply and the outlook for global sovereign bonds
4 Jul 2024
With the focus shifting from interest rate cuts to the likelihood of rates staying higher for longer, Steve Ryder and Daniel Bright assess the possible outcomes and implications of higher rates and monetary policy divergence in debt markets.
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Bond Voyage: A journey into fixed income
2 Jul 2024
In a special European Championships edition of Bond Voyage, we discuss topical themes in liquidity, emerging-market debt, investment-grade credit and global sovereign bonds (with a little help from Cristiano Ronaldo and Kylian Mbappé).
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Bond Voyage: A journey into fixed income
10 Jun 2024
This month, we discuss fiscal discipline in emerging markets, investment-grade credit portfolio construction, potential opportunities for sovereign investors in Canada and the merits of a developed-market focus in global high yield.
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Emerging-market debt turns the corner: The EM investment universe grows amid improved resilience
21 May 2024
Emerging-market debt analyst Carmen Altenkirch reports back from the recent International Monetary Fund (IMF)/World Bank meetings in Washington.
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See the wood, not just the trees: How climate-focused credit investors can help drive real-world change
14 May 2024
Green bond funds and Paris-aligned benchmarks are aimed at climate-focused credit investors who also want the simplicity of passive investing. But while they decarbonise portfolios, they exclude the companies in the real economy that need to transition if the world is to meet the Paris Agreement goals. This is why an active approach can be beneficial.
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Bond Voyage: A journey into fixed income
13 May 2024
This month, we discuss Spring meetings, the path for rates and sustainability-linked bonds.
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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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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.