Todd Cutting and Rakesh Girdharlal explain how our ReturnPlus strategy could be an option for investors looking to optimise their strategic cash allocation.
All institutions need to hold cash and maintain sufficient levels of liquidity, but not all cash needs to be accessible immediately. Consequently, many institutions are looking to optimise returns from the tranche of their strategic cash allocation not required on a T+0 basis.
Our ReturnPlus strategy is designed to help investors enhance returns on excess cash by investing in short-maturity, highly rated fixed-income securities. We invest in liquid sovereign and corporate debt, taking modest credit spread risk, mitigating other risks and maintaining liquidity. We access a range of return drivers for different sources of alpha and to enhance portfolio diversification, while hedging interest rate and currency exposures back to the base currency.
Our approach benefits from our extensive experience managing assets to meet clients’ specific liabilities and risk-based capital requirements. For more than a decade, our investment team has managed Aviva’s portfolios to optimise return and capital efficiency. Drawing on this knowledge and taking advantage of market dislocations has allowed us to deliver a strong track record and historically low volatility.
Download The Case for ReturnPlus: An approach to optimise strategic cash returns, where we set out what we consider the main benefits of the ReturnPlus strategy, including:
- Enhanced returns over money market funds
- Cash optimisation
- Capital preservation and liquidity
- ESG integration in our investment process
Past performance is not a reliable indicator of future returns.