Todd Cutting and Rakesh Girdharlal explain how our ReturnPlus strategy could be an option for investors looking to optimise their strategic cash allocation.

All institutions need to hold cash and maintain sufficient levels of liquidity, but not all cash needs to be accessible immediately. Consequently, many institutions are looking to optimise returns from the tranche of their strategic cash allocation not required on a T+0 basis.

Our ReturnPlus strategy is designed to help investors enhance returns on excess cash by investing in short-maturity, highly rated fixed-income securities. We invest in liquid sovereign and corporate debt, taking modest credit spread risk, mitigating other risks and maintaining liquidity. We access a range of return drivers for different sources of alpha and to enhance portfolio diversification, while hedging interest rate and currency exposures back to the base currency.

Our approach benefits from our extensive experience managing assets to meet clients’ specific liabilities and risk-based capital requirements. For more than a decade, our investment team has managed Aviva’s portfolios to optimise return and capital efficiency. Drawing on this knowledge and taking advantage of market dislocations has allowed us to deliver a strong track record and historically low volatility.

Download The Case for ReturnPlus: An approach to optimise strategic cash returns, where we set out what we consider the main benefits of the ReturnPlus strategy, including:

  • Enhanced returns over money market funds
  • Cash optimisation
  • Capital preservation and liquidity
  • ESG integration in our investment process

Past performance is not a reliable indicator of future returns.

Key risks

Past performance is not a guide to future performance

Investment 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 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.

Illiquidity 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.

Related views

Important information


Except where stated as otherwise, the source of all information is Aviva Investors Global Services Limited (AIGSL). Unless stated otherwise any views and opinions are those of Aviva Investors. They should not be viewed as indicating any guarantee of return from an investment managed by Aviva Investors nor as advice of any nature. Information contained herein has been obtained from sources believed to be reliable, but has not been independently verified by Aviva Investors and is not guaranteed to be accurate. Past performance is not a guide to the future. 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. Nothing in this material, including any references to specific securities, assets classes and financial markets is intended to or should be construed as advice or recommendations of any nature. Some data shown are hypothetical or projected and may not come to pass as stated due to changes in market conditions and are not guarantees of future outcomes. This material is not a recommendation to sell or purchase any investment.

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:

In Europe this document is issued by Aviva Investors Luxembourg S.A. Registered Office: 2 rue du Fort Bourbon, 1st Floor, 1249 Luxembourg. Supervised by Commission de Surveillance du Secteur Financier. An Aviva company. In the UK this is issued by Aviva Investors Global Services Limited. Registered in England No. 1151805. Registered Office: 80 Fenchurch Street, London, EC3M 4AE. Authorised and regulated by the Financial Conduct Authority. Firm Reference No. 119178. In Switzerland, this document is issued by Aviva Investors Schweiz GmbH.