Do hybrids still offer attractive yield?
Mitchell sits down with Head of Funds Management, Alastair Davidson to discuss hybrids in today's market and the role it can play in a portfolio.
Hybrid’s are not without risk. They are complex investment instruments and too many investors will simply invest in one or two bank hybrids with the highest yield. Due to the complexity and risk associated with hybrids we believe in a portfolio approach and that is why we created the InvestSMART Hybrid Income Portfolio.
The InvestSMART Hybrid Income Portfolio aims to achieve a return of 3% above the RBA cash rate. Currently the estimated income of the portfolio is 5.2%.
We sit down with InvestSMART’s Head of Funds Management, Alastair Davidson to get an update on the portfolio and discuss how hybrids play a role as part of the fixed interest component and how much.
Find out more about the InvestSMART Hybrid Income portfolio.