Aviva’s Richard Saldanha says rising Treasury yields mean stock investors need to rethink their positions

Richard Saldanha, an equity fund manager at Aviva Investors, is advising stock investors to diversify their portfolios as the US 10-year Treasury yield pushes toward the 5% mark.

Why 5% changes the conversation

US 10-year Treasury yields traded in the range of roughly 4.69% to 4.75% through the latter part of August 2026, with a peak near 4.75% in late July. The forces driving yields higher include persistent fiscal pressures, stubborn inflation, and a structurally higher rate environment following years of near-zero rates.

Saldanha’s equity philosophy and what it tells us

Saldanha’s investment approach at Aviva is specifically designed to capture most of the upside in equity markets while limiting damage on the way down. The target: roughly 90% upside participation relative to benchmarks, with downside capture of around 80%.

Saldanha rejoined Aviva Investors in December 2024, returning after a stint at Royal London Asset Management. He originally joined the firm back in 2006.

The broader stakes for equity investors

Sectors built on discounted future cash flows, think long-duration technology or speculative growth names, are the most exposed when yields rise. A higher discount rate applied to earnings expected years from now shrinks the present value of those earnings.

Aviva posted a group operating profit of £1.326 billion for the first half of 2026, a 24% increase compared to the same period a year earlier. The interim dividend was lifted 7% to 14 pence per share.

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