Our approach to short-dated bonds seeking enhanced returns with low volatility
We believe ReturnPlus is a unique offering aiming to deliver an attractive risk-return profile with low volatility and high levels of liquidity while integrating* environmental, social and governance (ESG) considerations in the investment process. The strategy targets a stable return over the market cycle by investing in short-maturity, highly rated fixed-income securities while hedging exposure to interest rate and currency risk.
ReturnPlus is managed by a highly experienced fixed‑income team with over two decades of market expertise and benefits from a globally connected platform that allows us to source high‑quality opportunities across regions, sectors, and structures.
*Non-binding integration of ESG factors as part of the investment decision making process i.e. the manager retains discretion beyond any specific criteria in the strategy and baseline exclusions policy.
Why invest?
The strategy aims to deliver consistent, dependable performance by capturing global, high-quality spread opportunities by limiting exposure to market shocks and unintended risks. With a clear focus on capital preservation, we believe it offers a compelling solution for investors seeking to optimise fixed income returns with resilience and more predictable outcomes.
Desired outcomes
Enhanced returns
Aiming for attractive, steady returns from high-quality global spread premia with fully hedged currency and interest-rate risks, the strategy looks to offer a predictable, compelling building block for portfolio construction.
Low volatility
With exposure focused on high‑quality sovereign, SSA**, covered bond, and asset‑backed securities (ABS), the strategy has the potential to deliver low volatility.
**Sovereign, Supranational and Agency Debt.
Resilience
Built on diversified, high-quality credit exposure and minimal non-credit market risks, the strategy seeks to deliver stable performance and protect capital in stressed markets.
ReturnPlus fund
Explore our ReturnPlus funds in USD, GBP, and EUR, designed to optimise your excess cash.
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.
Investment philosophy
We believe there are opportunities in global fixed income that can provide attractive returns while limiting exposure to risks typically associated with traditional short-dated credit strategies such as duration, currency and downgrade risks. There are segments of the sovereign, sovereign‑related, ABS, and covered bond markets that are often underutilised, yet when accessed selectively and with a disciplined, risk‑controlled approach, we believe they have the potential to deliver attractive, repeatable returns with minimal volatility.
Sovereign, Supranational and Agency Debt (SSA)
SSA securities can offer exceptional credit quality as they are typically rated AAA or AA and provide deep market liquidity. They enable investors to diversify across geographies and currencies, making them a possible cornerstone for building resilient portfolios with minimal credit risk.
Asset-Backed Securities (ABS)
ABS have the potential to deliver attractive yields compared to similarly rated corporate bonds, with senior tranches often rated AAA. These securities are backed by pools of assets, reducing idiosyncratic risk and can offer a compelling opportunity to enhance returns while maintaining strong credit quality.
Covered bonds
Covered bonds are bank-issued debt instruments secured by a dedicated “cover pool,” typically composed of high-quality mortgages. They carry exceptionally strong credit ratings—typically AAA—thanks to their “dual recourse” structure, which means investors have two avenues for repayment: both the issuing bank and the segregated asset pool. Supported by robust structures and deep market liquidity, covered bonds offer potential for higher levels of security and stability.
Investment insights
Investment thinking that brings together the collective insight of Aviva Investors’ teams from across the globe on the key themes influencing markets.
Views
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The week in markets: A market at odds
24 Jul 2026
As oil surged above $100 and bond yields climbed to multi-year highs, equities held up remarkably well, leaving investors to reconcile two very different messages from financial markets.
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Bond Voyage: Hyperscalers: A scramble to raise capital
9 Jul 2026
Giant tech companies are increasingly turning to international markets as they look to finance trillions of dollars of investment in AI infrastructure over the coming years. And they are doing so at accelerated speeds and scale.
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Taking the leap: Incorporating climate in core investment-grade allocations
16 Jun 2026
How can investors align their credit allocations to net-zero commitments and maintain returns?
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Confidence in a changing climate
15 Jun 2026
How can institutions forge impactful climate strategies that are right for them and their end beneficiaries? Our “Confidence in a changing climate” guide showcases some of the solutions we have developed to help.
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Bond Voyage: Why repo is quietly becoming one of the most important issues for investors
9 Jun 2026
As central banks unwind quantitative easing (QE), liquidity is increasingly being provided through repo operations instead of continuous asset purchases by the banks. How resilient is this new approach?
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Blockchain: The quiet technology reshaping financial infrastructure
8 Jun 2026
Tokenisation is more than a technical novelty. Our simple guide explains how blockchain turns assets into digital tokens and examines the potential benefits and risks.
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Sustainability review 2025
2 Jun 2026
We believe understanding sustainability factors and trends is fundamental to effective asset management. This report sets out our approach and includes an overview of our holistic stewardship activities over the past year
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Clarity and resilience: New guidance for European Money Market Funds
21 May 2026
New guidance on the rules governing European money market funds should strengthen the market’s foundations and provide a firm footing for innovation and growth, argues Alastair Sewell.
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Bond Voyage: Emerging markets have changed: why markets shouldn’t price them like it's 2013
11 May 2026
Emerging markets have increasingly forged for themselves a path less dependent on external conditions, making local currency debt one of the most mispriced narratives in global markets.
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Contemporary alchemy
5 May 2026
Precious metals such as gold and silver, rare earth minerals, and industrial metals such as copper have been making headlines in recent months. We talked to a team of experts to discover what’s been driving investors’ appetite.
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The case for ReturnPlus: A capital efficient enhanced liquidity strategy
30 Apr 2026
The ReturnPlus strategy invests in a broad range of liquidity sub-asset classes, while consuming limited regulatory capital. Our ReturnPlus team explains why investors should consider an allocation to the strategy.
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The case for ReturnPlus: A capital-efficient enhanced liquidity strategy
30 Apr 2026
The ReturnPlus strategy invests in a broad range of liquidity sub-asset classes, while consuming limited regulatory capital. Our ReturnPlus team explains why investors should consider an allocation to the strategy.
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Bond Voyage: Oil shocks without the drama
9 Apr 2026
The reaction to the latest oil price shock provides further evidence that those countries which have taken steps to strengthen their financial position are being rewarded by bond investors.
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Bond Voyage: Markets repricing as Gulf conflict threatens energy shock
12 Mar 2026
The ongoing conflict in the Middle East continues to impact the markets while inflation expectations are recalibrated.
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Bond Voyage: Dancing to a new tune: How Japan’s Lifers are adapting to a market in flux
9 Feb 2026
Japan’s bond markets enter 2026 transformed and recent structural shifts have changed the behaviour of the country’s powerful life insurers.
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Bond Voyage: Industrialised alpha meets fixed income fragility
13 Jan 2026
Could the proliferation of short-term leverage strategies be the next hidden challenge for fixed income markets?
Bond Voyage
Bond Voyage: A journey into fixed income
Each month, our freewheeling fixed-income newsletter gathers insights from our high-yield, investment-grade, emerging-market and global sovereign bond teams.
House view
House View
No one can predict the future. But our quarterly House View sets out the collective wisdom of our investment teams on the current state of global markets – and where they might be heading.
Useful strategy documents
Key risks of ReturnPlus strategy
Investment/objective risk
The value of an investment and any income from it can go down as well as up. 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. Illiquid securities 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.
Illiquid securities 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
Meet our ReturnPlus team.
Todd Cutting
Head of Enhanced Liquidity and ReturnPlus
Michalis Ditsas
Senior Investment Director, Fixed Income
Alexander Ieri
Portfolio Manager
Explore
Fixed income
Fixed income is an indispensable building block for meeting a variety of investment goals, including income, inflation protection, liability management and capital appreciation.
Important information
THIS IS A MARKETING COMMUNICATION
Except where stated as otherwise, the source of all information is Aviva Investors Global Services Limited (“Aviva Investors”). Unless stated otherwise any views, opinions and future returns expressed are those of Aviva Investors and based on Aviva Investors internal forecasts. They should not be viewed as indicating any guarantee of return from an investment managed by Aviva Investors nor as advice of any nature. The value of an investment and any income from it may go down as well as up and the investor may not get back the original amount invested.
Past performance is not a guide to future returns. Where relevant, information on our approach to the sustainability aspects of the strategy and the Sustainable Finance disclosure regulation (SFDR) including policies and procedures can be found on the following link: https://www.avivainvestors.com/en-gb/capabilities/sustainable-finance-disclosure-regulation/
In Europe this document is issued by Aviva Investors Luxembourg, with its registered office located 2 rue du Fort Bourbon, L-1249 Luxembourg, Grand Duchy of Luxembourg. Aviva Investors Luxembourg is supervised by the Commission de Surveillance du Secteur Financier, R.C.S Luxembourg B25708.
In the UK this document is issued by Aviva Investors Global Services Limited, registered in England and Wales No. 1151805, with its registered office located at 80 Fenchurch Street, London, EC3M 4AE. Aviva Investors Global Services Limited is authorised and regulated by the Financial Conduct Authority. Firm Reference No. 119178. In Switzerland, this document is issued by Aviva Investors Schweiz GmbH.