Peter Doherty, Head of Fixed Income at Sanlam Investments, spoke to Asset TV on the Sanlam Hybrid Capital Bond Fund as it has reached its 5th anniversary.
He talks about what makes Hybrid Capital unique and how it’s used to balance diversification and risk.
Capital at risk. Past performance is not a guide to future performance. The fund will invest in bonds and other debt instruments, this will be impacted by factors such as changes in interest rates and risk of default by the issuer. The Fund may engage in transactions in financial derivative instruments for hedging purposes. There is a risk that losses could be made on derivative positions or that the counterparties could fail to complete on transactions. The Fund may invest in Contingent Convertible Securities (CoCos). The value of CoCos is unpredictable and will be influenced by many factors, without limitation (i) the creditworthiness of the issuers; (ii) economic, financial and political events that affect the issuer; (iii) general market conditions and available liquidity. The investor may not receive a return of principal if expected on a call date or indeed at any date.