AVIVA GLOBAL DISTRIBUTION BOND A - Fund overview

Portfolio

• Asset Allocation
• Equity Geographic
• Equity Capitalisation

Allocation		Proportion
	Equity	50%
	High yield bonds	10%
	Quality bonds	40%
	Property	0%
	Commodities	0%
	Hedge	0%
	Fund cash	0%

Allocation		Proportion
	UK	60%
	Europe	10%
	Nth America	10%
	Japan	10%
	Pacific	10%
	Other Equity	0%

Allocation		Proportion
	Large Caps	80%
	Mid Caps	15%
	Small Caps	5%

View all performance data for AVIVA GLOBAL DISTRIBUTION BOND A

Investment process

Investors gain exposure to the performance of the underlying portfolio of assets by investing in a 20 year note managed by Woolwich Plan Managers. The note is priced and traded on a daily basis. The underlying portfolio will consist of 60% convertibles bonds, preference shares and cash and 40% higher yielding securities selected by Morley Fund Management.
The equity proportion of the portoflio is sector and style neutral. Potential candidates for inclusion are initially identified using Morley's quantitative based equity selection models (currently responsible for £2.5 of AUM) . These results are subsequently considered against the option volatility for a stock, which will determine the level of premium which Morley might be able to command by selling equity options in the market. Equities selected will typically have higher yields to help meet the targeted income, Morley may may subsequently sell covered call options against equities held in the portfolio to enhance the overall income yield.
The fixed income exposure will usually be via 'investment grade' convertible bonds, these are equivalent to corporate bonds with a call option attached, consequently they can provide the prospect of some capital growth whilst limiting capital downside on account of their relatively high yield.