AVIG

AVIG actively selects a broad range of bonds from both US and non-US issuers. Securities may include those issued by corporations or governments and their agencies, instrumentalities, or sponsored corporations—including supranational organizations. The portfolio selection seeks bonds with high expected returns through a process that uses an analytical framework in which each bond's expected income and capital appreciation is assessed. Fund managers categorize the portfolio's universe into component groups based on industry sector, credit rating, duration, country and currency. Then, each group's expected return implied by the yield curve is calculated, while considering valuation metrics such as yield, duration, and option adjusted spreads. The fund aims for a weighted average maturity within two years of the weighted average of its benchmark, the Bloomberg US Aggregate Bond index. The fund may also invest in credit default swaps and total return swaps.