Aviva launches the Global Short Duration High Yield Bond Strategy

By Tali David

Minneapolis, June 6 - Aviva Investors launched the Aviva Investors Global Short Duration High Yield Bond Strategy, the company announced in a press release.

The new strategy is in response to growing demand from institutional investors seeking less volatile, consistent income, Aviva said.

The strategy, an addition to the company's already existing $257.4 billion fixed-income product range, invests in high-yield corporate bonds that have an average maturity of less than five years and are domiciled across the world.

"The challenging economic conditions of the past few years have prompted institutional investors to increasingly reduce risk in their portfolios while trying to maintain strong levels of income," Todd Youngberg, global investment director of fixed income and head of high-yield investments, said in the release.

"Addressing the duration of bond investments is an important step in this process, as it defines both price volatility due to spread movement and interest rate risk investors are taking. Next to the credit risk, this is the main concern for bond holders," he added.

The strategy is managed by Aviva's global high-yield team, which is headed by Youngberg. Senior high-yield portfolio manager Jeremy Hughes is the team lead fund manager.

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