Our approach to short-dated bonds

Aviva Investors’ ReturnPlus Fund draws on a range of credit spread premia to optimise returns from strategic cash while mitigating risk and maintaining liquidity. The fund invests in liquid, short-maturity, highly rated fixed-income securities while hedging interest rate and currency risks. Our approach benefits from our extensive experience managing assets to meet clients’ liabilities and risk-based capital requirements to optimise return and capital efficiency.

Potential benefits of capital efficient short-dated bond funds

The strategy is structured to deliver better risk-adjusted returns than cash and a highly liquid exposure in a capital-efficient format.

Enhancing returns

Attractive investment for strategic cash assets. 
Targeting Sonia1 +75bps, ESTR2 +50bps and SOFR3 +75bps p.a.*

Capital efficiency

Investments with low solvency capital charges. 
Investing in high-quality, short-dated debt; keeping risk low using a variety of tools.


Allocating investments to highly liquid instruments.
Daily redemptions, settled T+3.

ESG integrated

The fund is SFDR Article 8, meaning it promotes environmental or social objectives.

Beyond any binding ESG constraints in the strategy and baseline exclusions policy, the investment manager retains discretion over final investment decisions, taking into account wider risk factors.

ReturnPlus strategies

Aviva Investors ReturnPlus Fund

The strategy targets a stable return over cash by investing in short-maturity, highly rated fixed income securities while mitigating risk and maintaining liquidity.

The case for ReturnPlus: An approach to optimise strategic cash returns

Todd Cutting and Rakesh Girdharlal explain how our ReturnPlus strategy could be an option for investors looking to optimise their strategic cash allocation.

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Aviva Investors ReturnPlus: Strategy in brief

PDF 2.0 MB 10 pages

A holistic liquidity solution providing access to stable returns above cash in a liquid, diversified format.

Key risks of ReturnPlus fund

Investment risk & Currency risk

The value of an investment and any income from it can go down as well as up and can fluctuate in response to changes in currency and exchange rates. Investors may not get back the original amount invested.

Credit and interest rate risk

Bond values are affected by changes in interest rates and the bond issuer's creditworthiness. Bonds that offer the potential for a higher income typically have a greater risk of default.

Illiquidity risk

Some investments could be hard to value or to sell at a desired time, or at a price considered to be fair (especially in large quantities), and as a result their prices can be volatile.

ReturnPlus team

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Fixed income views

* Over a three-year rolling period, regardless of market conditions.

1 GBP Strategy Targetting Sterling Overnight Index Average, a widely used interest rate benchmark and reference rate for sterling overnight Indexed Swaps (OIS).
2 EUR Strategy Targetting Euro Short Term Rate, the alternative euro risk free rate and replacement for EONIA. ESTER will be published from October 2019.
3 USD Strategy Targetting Secured Overnight Financing Rate, the alternative USD risk-free rate and replacement for LIBOR.