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.
Liquidity
Allocating investments to highly liquid instruments.
Daily redemptions, settled T+3.
ReturnPlus strategy
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: A capital efficient enhanced liquidity strategy
A strategic cash allocation strategy seeking yield, liquidity and security, aiming to deliver a higher return than cash.
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.
Useful fund documents
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.
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
Need more information?
For further information, please contact our investment sales team.
Explore our fixed income range
Fixed income views
-
Beyond buyout: Why DB schemes are reconsidering their endgame
10 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.
-
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.
-
Bond Voyage: A journey into fixed income
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.
-
Bond Voyage: A journey into 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.
-
From niche to core: Asset-based finance emerges as a driving force as private debt markets continue to evolve
7 Oct 2025
Asset-based finance is capturing the attention of institutional investors – from pension schemes to insurers – thanks to its diverse risk-return drivers and its growing role as a strategic building block in investors’ portfolios.
-
Energy-intensive industries: Unlocking low-carbon investment
16 Sep 2025
Vital industries for UK growth like steel or cement are also energy intensive, and their decarbonisation is essential. We convened a roundtable of experts to discuss barriers and solutions to unlocking low-carbon investment opportunities.
-
Bond Voyage: A journey into fixed income
9 Sep 2025
In this month’s Bond Voyage, our Solutions team investigates the reasons behind the widening gilt-swap spread and its implications for government bond investors, in particular for insurance companies.
-
Money-market funds: An overview for corporate treasurers and investors
3 Jun 2025
Nana Antwi provides an overview of money-market funds (MMFs) and their importance in cash management for corporate treasurers and many other investor types.
-
Bucking the trend: Emerging market debt shows its mettle amid wider market turbulence
19 May 2025
Emerging-market debt has proved a rare bright spot so far this year as investors struggle to assess the impact of US political upheaval. In this article, Carmen Altenkirch and Nafez Zouk advance reasons why the market is well placed to weather ongoing market turbulence.
-
Sovereign engagement: Driving positive change while delivering long-term value
14 May 2025
Investor engagement with governments on their climate commitments can be a powerful complement to other forms of stewardship. It can also help investors identify opportunities and mitigate risks, says Thomas Dillon.
-
Bond Voyage: A journey into fixed income
6 May 2025
In May, our EMD team discusses the most effective way to manage fixed income through episodes of heightened uncertainty.
-
Bond investing: Five things to know about bonds
7 Mar 2025
In this article, we explain key concepts of bond investing, such as yield and duration, explore the role of bonds in investment portfolios and look at the current state of the bond markets.
-
The cash conundrum: Five things to know about cash, saving and investing
7 Feb 2025
In this article, we explore the logic behind holding assets in cash, the difference between saving and investment, and why a longer-term focus may help investors achieve their objectives.
-
Buy-and-maintain credit: Taking the road to net zero
10 Dec 2024
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?
* 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.