Aviva Investors, the global asset management business of Aviva plc, has announced the launch of three new Fixed Income strategies, designed to provide tailored solutions to client demands, amongst an increasingly complex investment landscape.
The three new strategies are:
- Global Hybrid Bond Fund: Aimed at providing enhanced income by investing primarily in hybrid bonds issued by global issuers.
- Senior ABS Income Fund: Designed to deliver income by investing in a diversified portfolio of high-grade, liquid asset backed securities.
- Global Unconstrained Credit Fund: A flexible fixed income strategy with the freedom to invest across the global credit opportunity set.
The team believe the fixed income world, and the role that it plays within client portfolios, has materially changed over recent years. Previously a defensive allocation and a source of stable income alongside growth-focused assets, fixed income is playing an increasing role across client portfolios. As a result, fixed income assets can now carry a much greater share of the responsibility for delivering client outcomes.
All three strategies have drawn on insights from our established Multi-asset team’s thinking on income and retirement, to ensure they are aligned with real‑world portfolio construction and asset allocation needs. The funds are designed to support evolving investor requirements, most notably the growing demand for dependable income and portfolio stability across different market environments.
While all three funds will have a lead portfolio manager, each strategy will leverage the experience from across the fixed income portfolio management team, utilising a team centric approach. The Hybrid Bond Fund will be led by Justine Vroman (Senior Portfolio Manager).
Whilst this marks the firm’s first dedicated hybrid bond fund, the investment team already has a strong knowledge of the space and notably has exposure to hybrid assets across various other existing fixed income strategies. This launch formalises that expertise and offers a standalone solution for a part of the market that the team believes is set to grow over the coming years and could yield significant investment opportunities.
The Senior ABS Income Fund will be led by Todd Cutting (Senior Portfolio Manager and Head of Enhanced Liquidity). As with the Global Hybrid Bond Fund, Aviva Investors already operates in the ABS asset class within its existing fund range, but this new product will bring together the firm’s structured finance expertise into a single strategy.
The Global Unconstrained Credit Fund will be led by Chris Higham (Senior Portfolio Manager and Head of Multi Sector Credit). This is the first global unconstrained credit offering to be launched by the firm, and is a high conviction, credit premia focused strategy with the freedom to invest across the full opportunity set and move quickly as markets shift.
The strategies will be informed by the various fixed income matrix pods framework that enables the team to share ideas and gain macro credit insights, maximising the usage of talent from across the wider team. The three new strategies will all be launched as Luxembourg UCITS SICAV Funds.
“We’re hugely pleased to be able to take this new suite of strategies out to market, expanding upon existing product offering to end clients, as we seek to provide increasingly tailored fixed income solutions.
“The fixed income marketplace has undergone vast change over recent decades, with the current landscape one of increased complexity, but also increased responsibility in terms of the role the asset class plays within broader asset allocations. It is therefore our duty to develop customised solutions that can provide clients with the resilient income that they are seeking from their fixed income exposure.
“We have benefited from the allocator viewpoint of our Multi-asset colleagues in the development process of these strategies – this insight can help us to support clients’ growing income and stability requirements within a changing market environment over the coming decades.”
Fraser Lundie, Global Head of Fixed Income at Aviva Investors, said:
