Aviva Long Bond Fund

Long Bond Fund Series C principally invests in Eurozone government bonds, with the ability to also hold index-linked government bonds, non-Eurozone government bonds and cash. Its holdings are concentrated in sovereign issuers such as Spain, France, the Netherlands, Ireland and Greece. The fund is actively managed by Aviva Investors, with Steve Ryder and Daniel Bright named as the fund managers.

Long Bond Fund Series C aims to outperform the Bank of America Merrill Lynch 10+ Year Euro Government Index over the long term. It is managed actively and targets a tracking error of 1%, which means it is designed to stay relatively close to the benchmark while still making active bets. The fund also targets a duration of plus or minus 2 years versus a Eurozone government bond benchmark of over 10 years, giving the managers room to adjust interest-rate exposure.

Long Bond Fund Series C carries market fluctuations, inflation risk, liquidity risk, counterparty risk and derivative risk, and capital and returns are not guaranteed. Currency risk can also arise from non-Eurozone bonds, although that exposure will normally be hedged; this means foreign-exchange moves are usually reduced but not completely eliminated. Because the fund focuses on long-dated government bonds, changes in interest rates may also have a notable impact on its value.

Long Bond Fund Series C is classified as an ESG Article 8 fund under the EU SFDR, so it is presented as promoting environmental and/or social characteristics. The factsheet does not provide detailed ESG screening rules, but the classification indicates that ESG factors are part of the fund's framework. Investors seeking a bond fund with an ESG label may find that feature relevant when comparing options.

Long Bond Fund Series C normally hedges any non-Eurozone currency risk. That means if the fund holds bonds outside the euro area, it typically uses hedging to reduce the effect of exchange-rate movements on returns. This can lower unwanted currency swings, although hedging is not a guarantee against all currency-related losses.