Our approach to short-dated bonds
Aviva Investors’ ReturnPlus strategy provides access to high quality credit spreads with low volatility. The strategy 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.
Why invest?
The strategy is designed to deliver better risk-adjusted returns than cash and lower volatility exposure than traditional short-dated IG credit strategies. For insurance investors, the strategy benefits from a capital efficient asset allocation. Potential benefits include:
Enhancing returns
Targeting above cash returns of:
Targeting Sonia1 +75bps, ESTR2 +50bps and SOFR3 +75bps p.a.*
Low volatility
Aiming to deliver stable performance and liquidity across a range of challenging market scenarios.
Capital efficiency
Aiming to deliver stable performance and liquidity across a full range of market conditions.
We have chosen to categorise this strategy as SFDR Article 8. Beyond any binding constraints in the prospectus or IMA and Baseline Exclusions Policy, the investment manager retains discretion over decision making taking into account ESG risks alongside other factors.
1 GBP Strategy Targeting Sterling Overnight Index Average, a widely used interest rate benchmark and reference rate for sterling overnight Indexed Swaps (OIS).
2 EUR Strategy Targeting Euro Short Term Rate, the alternative euro risk free rate and replacement for EONIA. ESTER will be published from October 2019.
3 USD Strategy Targeting Secured Overnight Financing Rate, the alternative USD risk-free rate and replacement for LIBOR.* Over a three-year rolling period, regardless of market conditions.
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
Delivering enhanced returns over traditional cash investments while maintaining a strong focus on capital preservation, liquidity, and risk. It achieves this by investing in short-duration, high-quality fixed income securities and actively hedges currency and interest rate risks, ensuring stability, regardless of market conditions.
Enhanced cash returns
Benefit from regional spread premium and structured FX hedging.
Invest in high-rated, short-maturity securities
Diversified across geographies, issuers, and currencies.
Limited exposure to risk
Hedge interest rate and currency exposures.
Investment insights
Investment thinking that brings together the collective insight of Aviva Investors’ teams from across the globe on the key themes influencing markets.
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Bond Voyage: A journey into fixed income
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: 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.
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Benchmarking cash: 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: 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.
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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.
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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.
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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.
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Bond Voyage: A journey into fixed income
5 Aug 2025
In this month’s Bond Voyage, our solutions team explores the implications of a “higher for longer” US interest rate environment and what it could mean for investment grade (IG) investors.
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Bond Voyage: A journey into fixed income
10 Jul 2025
In this month’s Bond Voyage, our emerging market (EM) debt team explains why, after a few false dawns, the stars seem to have aligned for EM local currency debt to outperform other global fixed income assets.
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Complementing cash: Optimising cash in a rate-cutting cycle
11 Jun 2025
As many central banks begin cutting interest rates, short-term bond strategies can offer a complement to cash holdings. Alastair Sewell explains.
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Bond Voyage: A journey into fixed income
9 Jun 2025
In June, our credit teams look under the bonnet of the European industry’s growth engine.
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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.
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
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.
Key risks of ReturnPlus strategy
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
Meet our ReturnPlus team.
Todd Cutting
Senior Portfolio Manager, Fixed Income Solutions
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.