The liquidity team at Aviva Investors has won Insurance Asset Risk's 2025 investment team of the year for asset managers award, and plaudits from customers, for its innovative products, which are optimised for insurers' needs of capital efficiency and stable returns above cash.

The team's range of liquidity solutions grew by over 30% last year, including through strong investment performance on low volatility – no mean feat given the volatile climate for rates, requiring a "disciplined and rigorous investment process".

Positioning as a liquidity complement, having an isolated risk factor exposure, and asset allocation differentiate the team's offerings from rivals' competing products.

"The solutions have resonated with investors, who appreciate the combination of stable returns and capital efficiency," the team says.

Capital efficiency and credit quality informed the team's decision last year to overweight covered bonds in the ReturnPlus GBP product. It has been run by the same portfolio managers for 10 years, a "stability and experience crucial in enabling the team to generate consistent returns through a wide range of market environments".

The product aims for annualised returns of its benchmark plus 75bps. Spread tightening plus carry in 2024 helped produce above-target outcomes as the team consistently harvested "stable and predictable spread exposures" while accessing the new issue market.

"The team's experienced and stable composition, combined with complementary capability sets and cohesive dynamics, have been key drivers of its success," the manager said.