Aviva Investors has launched the Short Duration Global Credit fund, to be run by senior portfolio manager Justine Vroman.
Aviva said it has been developed in response to demand for fixed income funds that can support income generation, capital preservation and portfolio resilience in a more uncertain market environment.
The strategy combines a high-quality investment-grade core with flexibility to allocate selectively across areas including government bonds, asset-backed securities, high yield bonds and emerging markets.
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It will launch with an investment of $230m from the Aviva Investors multi-asset team.
The new offering is the fourth recent addition to the firm’s fixed income range, following the launch Global Hybrid Bond, Senior ABS Income and Global Unconstrained Credit.
Fraser Lundie (pictured), global head of fixed income at Aviva Investors, said: “We believe the current environment has strengthened the case for short duration credit.
“In this context, the fund has been designed to help investors access the income potential available in global credit markets, while maintaining a disciplined approach to risk.
“We believe a global, actively managed approach to short duration credit can offer investors a practical way to put lower-risk fixed income allocations to work more efficiently.”
