Our approach
Strategic bond funds can offer investors exposure to many different areas of fixed income such as government, corporate and high-yield bonds, offering portfolio diversification. However, strategic bond funds come in many flavours. The strategic bond sector is one with a high dispersion of returns, inconsistent performance, and high correlation with the high-yield market.
Our Strategic Bond Fund has a long track record managed with a consistent process and team. We invest in the best ideas across global fixed income markets using a long-term, fundamentally driven approach within a focused portfolio. We seek to provide clients with superior risk-adjusted returns through market cycles and minimise drawdowns during periods of volatility.
Potential benefits
The Aviva Investors Strategic Bond Fund represents a compelling option for investors seeking to outsource their fixed income decision making to a truly global team of bond specialists. The fund is designed to provide a strategic anchor for a core fixed income allocation:
Single solution
The fund is a convenient solution for investors looking to gain diversified exposure across global fixed income markets in a standalone strategy.
Global
The fund can invest globally, accessing a wide opportunity set to construct a portfolio that can perform throughout market cycles. However, it is important to note that at least 80 per cent of the portfolio’s assets will either be sterling-denominated or hedged back to sterling.
Total return focus
Long-term outperformance with less risk. Fixed income investing involves asymmetric risks that are skewed to the downside – in other words, the potential losses are greater than the potential gains. This can result in a tendency to focus on avoiding defaults. However, when trying to maximise total returns, identifying winners is also crucial.
Strategic Bond Fund strategies
Aviva Investors Strategic Bond Fund
A total-return fixed income solution that utilises a flexible, unconstrained approach across global bond markets, seeking to deliver long-term excess returns.
Strategy resources
Solving the chocolate box problem: The Aviva Investors Strategic Bond Fund
The opacity and wildly differing risk-return profiles of strategic bond funds can be a headache for advisers. We explain how the Aviva Investors Strategic Bond Fund could provide a viable solution.
![](http://static.aviva.io/content/dam/aviva-investors/main/assets/views/aiq-investment-thinking/2022/06/solving-the-chocolate-box-problem-the-aviva-investors-strategic-bond-fund/solving-the-chocolate-box-problem.$16x9-mobile-4cols$.jpg?$16x9-mobile-4cols$)
Key risks
For further information on the risks and risk profiles of our funds, please refer to the relevant KIID and Prospectus.
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.
Illiquid securities risk
Certain assets held in the fund could, by nature, 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 could be very volatile.
Credit 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
The fund uses derivatives; these can be complex and highly volatile. Derivatives may not perform as expected, which means the fund may suffer significant losses.
Convertible securities risk
Convertible bonds can earn less income than comparable debt securities and less growth than comparable equity securities, and carry a high level of risk.
Strategic Bond Fund team
![](http://static.aviva.io/content/dam/aviva-investors/main/assets/about/our-people/c/chris-higham-3842.$16x9-mobile-lg-4cols$.jpg?$16x9-mobile-lg-4cols$)
Chris Higham
Senior Portfolio Manager
Need more information?
For further information, please contact our investment sales team.
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.