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: Investors are asking harder questions
23 Oct 2026
A volatile week saw concern about artificial intelligence (AI), rising oil prices and European political uncertainty collide, but beneath the headline market moves there were encouraging signs of resilience.
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Are we there yet? How road transport is evolving
8 Oct 2026
Electric and self-driving cars, batteries and robotics are progressing in leaps and bounds. Our experts discuss the investment implications.
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Bond Voyage: Beyond capital relief: securitisation reforms and insurer portfolios
8 Oct 2026
Securitisation offers insurers diversification, varied collateral pools and attractive spreads, yet remains underrepresented as allocations depend on more than returns and capital charges.
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Global and active: Fiscal risks strengthen the case for a global allocation to sovereign bonds
7 Oct 2026
With government deficits under the spotlight, fixed income investors need to think globally and take an active approach to allocations.
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Capital-backed solutions
15 Sept 2026
Whether the endgame is buyout, run-on or just keeping all the options open, a capital-backed solution can help DB pension schemes make the journey with confidence.
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Bond Voyage: When private credit moves public markets
10 Sept 2026
Private credit should no longer be treated as a separate asset class beyond public investors’ field of view – it is part of the same ecosystem, influencing price discovery, transfer of risk and recovery outcomes.
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AI boom highlights a flawed bond market
1 Sept 2026
Investors in passive bond funds are being exposed to more risk than they may appreciate as US technology giants turn to fixed income markets to fund massive spending on AI data centres, argues Aviva Investors chief executive Mark Versey.
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UK and EU sustainability regulations: Could a narrow focus be missing the bigger picture?
27 Aug 2026
Regulation must recognise that sustainable investing incorporates more than the provision of sustainable funds alone.
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Investment diversification: Still the only free lunch?
26 Aug 2026
Diversification has always been at the heart of asset management, but recent turmoil, from higher inflation to conflict, trade barriers and the AI revolution, is roiling markets. Can investors still reap its benefits?
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Bond Voyage: The role of investment research in the age of AI
11 Aug 2026
Artificial intelligence (AI) is already helping research analysts work more efficiently, but could it ultimately replace them?
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From volatility to stability: Enhancing portfolio resilience in insurance investment
5 Aug 2026
Insurers have long navigated a distinctive set of investment challenges, what can they do to build portfolios resilient enough for today's volatile environment?
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Driving stewardship together
29 Jul 2026
Aviva’s Investments, Wealth and Retirement business and Aviva Investors are working together to deliver financial and sustainable outcomes, connecting clients to their capital.
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The case for ReturnPlus: A capital-efficient enhanced liquidity strategy
29 Jul 2026
The ReturnPlus strategy invests in a broad range of liquidity sub-asset classes, while consuming limited regulatory capital. Our ReturnPlus team explores the potential benefits for investors.
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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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Hopes and fears: Why client behaviour – not markets – can determine retirement outcomes
30 Jun 2026
As clients manage their assets in retirement, irrational hopes and fears can get in the way of sound financial decision-making. We look at some of the common behavioural biases that can hinder good outcomes, and the strategies to help overcome them.
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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?
Bond Voyage
Bond Voyage: A journey into fixed income
Our monthly freewheeling newsletter brings you the latest insights from across our fixed income teams.
House view
House View
Market insights, economic analysis and investment perspectives to help investors understand the trends, risks and opportunities shaping global markets.
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.