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
10 Apr 2026
Markets breathed easier this week and repriced swiftly as a ceasefire in the Middle East eased oil prices, cooled inflation fears and revived investors’ risk appetite.
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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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The week in markets
6 Mar 2026
While energy prices and government bond yields rose this week, the impact on equities was different across regions, and credit stress was contained. The situation so far is one of uncertainty rather than a downturn.
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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?
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Benchmarking cash, part two: A survey of cash trends
19 Dec 2025
In the second of a two-part series on cash trends, our liquidity team examines European corporate cash holdings and the increasing appeal of money market funds (MMFs).
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Buy and maintain credit: Taking the road to net zero
15 Dec 2025
Long-term trends like climate change are particularly important for buy-and-maintain investors. How can they integrate climate objectives, such as net zero by 2050, into their portfolios?
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Bond Voyage: Hyperscalers issue debt to finance huge investments in generative AI data centres
12 Dec 2025
In the last Bond Voyage edition of 2025, we examine the vast amounts of capital being deployed to build new high-capacity data centres and how the expenditure is being funded in the bond markets.
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Boosting low-carbon investment in the UK: 2025 Roadmap Update
11 Dec 2025
In 2024, we outlined our view on the most important public-policy interventions to unlock private investment in the low-carbon economy. In this update, we take stock of policy developments since, and look ahead to 2026 and beyond.
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Purposeful run-on: A credible alternative to buyout
5 Dec 2025
Discover why purposeful run-on is emerging as a credible alternative to buyout for well-funded defined benefit (DB) pension schemes – and how it can unlock long-term value while keeping clients' needs at the centre.
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Beyond buyout: Why DB schemes are reconsidering their endgame
4 Dec 2025
Significant shifts in the defined benefit (DB) pension schemes landscape mean that as schemes mature, trustees and sponsors now face a broader spectrum of strategic choices. We explain why the choice between buyout and run-on is no longer binary.
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Rethinking risk in EMD: The great inversion on emerging markets
28 Nov 2025
Market and economic trends are challenging the idea that emerging market (EM) bonds should trade at a discount to developed economy debt.
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Bond Voyage: Bulk Purchase Annuity – a quiet market making loud moves
10 Nov 2025
This month’s Bond Voyage looks at the Bulk Purchase Annuity (BPA) market in the UK – the quiet market making loud moves.
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Benchmarking cash, part one: A survey of cash trends
14 Oct 2025
In this article, the first of a two‑part series, members of our liquidity team explore cash trends in a rapidly evolving financial landscape for corporate treasurers.
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Bond Voyage: SHIELD: Refining downside protection in fixed income
9 Oct 2025
In this month’s Bond Voyage, we introduce SHIELD – the downside protection framework used by our fixed income division. SHIELD is designed to ensure our portfolios remain resilient in challenging market conditions while maintaining capital efficiency.
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
Alastair Sewell
Senior Investment Director
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.