Our approach

Aviva Investors ReturnPlus is designed with the aim to help investors enhance returns on excess cash by investing in short-maturity, highly-rated fixed-income securities where T+0 liquidity is deemed unnecessary. The strategy invests in liquid sovereign and corporate debt, targeting structural premia in global fixed income markets. Interest and exchange rate risks are hedged with the intention to produce a floating rate outcome. Overall, the intention is to optimise returns while mitigating risk and maintaining liquidity.

Potential benefits

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.

Liquidity

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

Key risks

Investment 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 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.

Derivatives risk

The strategies use derivatives; these can be complex and highly volatile. Derivatives may not perform as expected, which means the strategies may suffer significant losses.

Illiquid private asset risk

Where strategies are invested in illiquid private assets, investors may not be able to redeem any units in  the strategy when they want because illiquid private assets may not always be readily saleable. If this is the case we may defer a request to redeem units.

Need more information?

For further information, please contact our investment sales 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 LIBO.