Aviva Investors Premier Fixed Income Fund

Premier Fixed Income Fund goes increasingly global

The Premier Fixed Income Fund is now able to access the expertise of Aviva Investors’ global fixed income teams in what is a real enhancement to the Premier Fixed Income Fund. Following a rigorous internal review the Aviva Investors Global High Yield Fund and the Aviva Investors Global Aggregate Bond Fund have both received allocations from the fund.

The allocation to the Aviva Investors Global Aggregate Bond Fund replaces a previously passively managed allocation to global bonds. The net affect of this change is to increase the Premier Fixed Income Fund’s alpha target by 50 basis points per annum.

The allocation to the Aviva Investors Global High Yield Fund replaces the fund’s allocation to a portfolio of domestic high yield and hybrid securities. The allocation to a global fund brings with it a much larger opportunity set and the significant resourcing of Aviva Investors’ well renowned US fixed income team.

Why global aggregate bond exposure?
Allocating to a global aggregate strategy provides investors with broad exposure to a global range of fixed income asset classes. A global aggregate strategy invests in the asset classes included in the Barclays Global Aggregate Index. It includes over 12,000 bonds across 21 currencies; government and corporate bonds, investment-grade emerging markets bonds and mortgage backed securities are all included.

Global High Yield
Our global portfolio management team has a combined total of over 60 years of investment experience. We have a significant commitment to credit research with 24 credit analysts (14 in US and 10 in Europe). At Aviva Investors, we have developed a conservative yet flexible approach to investing in high yield bonds which has historically provided strong relative and risk-adjusted performance. The team invests primarily in BB and B rated corporate bonds, while opportunistically investing in CCC rated securities.

 

© 2009 Aviva Investors Australia Limited

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