The FTV Investment Process
Aviva Investors uses a proprietary Fundamental, Technical, and Valuation ("FTV") framework that serves as the core of our investment process. We apply this FTV framework consistently across asset classes, sectors, industries, and securities, resulting in disciplined decision making, discrete identification of performance drivers, and a clear interpretation of actionable ideas in client portfolios.
What is FTV?
The FTV framework focuses on our prospective assessment of the three main factors that drive performance of financial instruments: Fundamentals, Technicals, and Valuation.
- Fundamentals include our qualitative, quantitative, and structural assessment of variables such as strength of management, cash flow growth expectations and covenant protections.
- Technicals include the directional move in investor sentiment or potential new issue supply.
- Valuation includes our assessment of spread compensation for inherent risk factors, or in other words, our rich/cheap analysis.
The FTV framework provides the foundation for our wide range of fixed income solutions that are designed to meet the specific needs of our clients. Our proactive assessment of each factor within the FTV framework allows us to avoid emotional decision making while capitalizing on the markets’ two primary emotions of fear and greed. The use of this framework across all Aviva Investors’ global locations serves as a common language among portfolio managers and analysts. Together, they collaborate on their global viewpoints in order to make efficient and timely investment decisions.
We believe the consistent implementation of the FTV framework results in value-added, outcome oriented, and forward looking investment positioning that enables us to deliver enhanced performance to our clients.
Aviva Investors seeks to customize investment solutions to our client’s objectives. Those objectives are the foundation for our five-phase investment process.
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