Investment Grade
Inception Date: 1/1/1996
Benchmark: Lehman US Credit Index
Description:
Aviva Investors Investment Grade Fixed Income strategy consists of investments in US dollar denominated corporate bonds issued by domestic and global companies. Investments in investment grade debt offer greater income generation potential than treasuries due to the moderate level of risk incurred and also provide potential excess returns. Through careful portfolio construction, the strategy’s management team aims to provide income generation as well as capital appreciation over treasuries, with a higher return per unit of risk.
Commentary
The Barclays U. S. Credit Index underperformed duration-neutral Treasuries for the quarter by 233 basis points. Despite solid credit fundamentals, we expect demand for investment grade credit to be muted by risk aversion. We foresee economic growth of a moderate 2.0% to 3.0% over the next 12 to 18 months.
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Investment Process
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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Research Framework
At Aviva Investors, we use the FTV framework as the cornerstone of our investment process: Fundamentals, Technicals and Valuations.
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