Aviva Bond Fund

Bond Fund Series C principally invests in Eurozone government bonds. It may also hold index-linked government bonds, non-Eurozone government bonds and cash. The fund is managed actively by Aviva Investors and is focused on the Eurozone.

Bond Fund Series C aims to outperform the Bank of America Merrill Lynch 5+ Year Euro Government Index over the long term. It is actively managed, with a target tracking error of 1%, which means its returns are intended to stay fairly close to the benchmark but with some room to differ. The fund also targets a duration of +/- 2 years relative to a 5-year Eurozone government bond benchmark, which means it can be positioned to be more or less sensitive to interest-rate changes than the index.

Bond Fund Series C is mainly invested in Eurozone bonds, but it can also buy non-Eurozone government bonds. Any non-Eurozone currency risk will normally be hedged, meaning the fund typically uses techniques to reduce losses or gains caused by exchange-rate moves. That does not remove all risk, but it aims to limit the impact of currency changes on returns.

Bond Fund Series C carries market fluctuations risk, so the value of the fund can go up or down with bond markets. It also has currency risk, counterparty risk, derivative risk, liquidity risk and inflation risk. Counterparty risk means a financial partner involved in a trade may fail to meet its obligations, which could cause a loss for the fund.

Bond Fund Series C is classified as an ESG Article 8 fund under the EU SFDR. That means it promotes environmental and/or social characteristics, but it is not necessarily a fully sustainable fund. Investors who want a Eurozone government bond fund with ESG integration may find Bond Fund Series C relevant.