Aviva Investors has launched an investment grade corporate bond fund run by trio of managers Joshua Lohmeier, Mike Cho and George Bailey, Investment Week can reveal.
The Aviva Investors US Investment Grade Bond fund invests primarily in US dollar-denominated investment grade corporate bonds from anywhere in the world and will factor in environmental, social and governance (ESG) criteria into its investment process.
The asset manager said the fund seeks to earn income and increase capital value while outperforming its benchmark over the long term (five years or more). Its benchmark is the Bloomberg Barclays US Credit index.
Its investment process is described as a long-term, active management approach. The managers will use "portfolio construction and risk allocation techniques combined with high conviction investments at both a company and sector level to deliver optimum risk-adjusted returns".
Aviva Investors head of North American investment grade credit and co-manager Lohmeier said: "We believe the US investment grade bond market offers compelling opportunities to investors at both the company and sector level, with portfolio construction offering an additional and distinct alpha source."
TJ Voskamp, director of client solutions, UK & Europe, said: "In these unparalleled times, clients are increasingly looking to diversify their portfolios to protect capital and source good income opportunities. Josh and the team have a deep understanding of their market."
The fund is a Luxembourg domiciled SICAV with US dollars as its base currency.