Aviva Corporate Bond Fund

Corporate Bond Fund Series C invests principally in investment grade corporate bonds, which are bonds issued by companies with relatively high credit ratings. It may also invest in government bonds and cash. The portfolio therefore focuses mainly on corporate debt, with some flexibility to hold other fixed-income assets.

Corporate Bond Fund Series C is actively managed and aims to outperform the Markit iBoxx Euro Corporate Bond Index over the long term. The managers, James Vokins and Justine Vroman, have a target tracking error of 1%, meaning the fund is designed to stay fairly close to the benchmark while still allowing active decisions to try to add value. The fund also targets a duration of +/- 2 years versus the benchmark, which means it can be positioned for interest-rate changes over time.

Corporate Bond Fund Series C can hold up to 20% in bonds that are not denominated in euro. Any non-Eurozone currency exposure must be hedged, which means the fund uses transactions intended to reduce the impact of exchange-rate movements on returns. The fund may also use derivatives to help reduce foreign currency risk.

Corporate Bond Fund Series C is exposed to market fluctuations, currency risk, counterparty risk, derivative risk, liquidity risk and inflation risk. Currency risk means foreign exchange moves can affect returns, while counterparty risk means another party in a transaction could fail to meet its obligations. As with all funds, capital and returns are not guaranteed.

Corporate Bond Fund Series C is classified as an ESG Article 8 fund under the EU SFDR. That means the fund promotes environmental and/or social characteristics, but it is not necessarily a fund with a pure sustainable investment objective. The factsheet does not provide further detail on specific ESG screens or exclusions for Corporate Bond Fund Series C.